NCLBGC – Residential Contractor Examination
(Unlimited Classification) Questions and
Correct Answers (Verified Answers) Plus
Rationale 2027 Q&A| Instant Download Pdf
1. Under North Carolina licensing classifications, what is the primary
scope of a Residential Contractor classification?
A. Commercial buildings only
B. Highway construction and bridge work
C. Construction and demolition of residential units required to
conform to the Residential Building Code
D. Public utility construction only
Rationale: The Residential Contractor classification covers
construction and demolition associated with residential units that are
required to conform to the Residential Building Code. It also includes
certain ancillary site work and specified specialty work connected with
those residences.
, 2. What does an Unlimited limitation permit a North Carolina
general contractor to do?
A. Perform projects up to $750,000
B. Perform projects up to $1,500,000
C. Perform only residential projects under $2 million
D. Act as a general contractor without restriction as to the value of
any single project
Rationale: The Unlimited limitation is not subject to a dollar-value
ceiling for an individual project. The classification still determines the
type of construction work the contractor may perform.
3. Which two concepts determine the scope of a North Carolina
general contractor license?
A. Experience and insurance
B. Bond and examination
C. Classification and limitation
D. Project location and contract duration
Rationale: Classification determines the type of construction work
permitted, while limitation determines the dollar size of projects that
may be undertaken. These are separate components of the license.
, 4. Which financial requirement applies to an applicant seeking an
Unlimited license?
A. $17,000 in working capital
B. $75,000 in working capital
C. $100,000 in working capital
D. $150,000 in working capital
Rationale: For an Unlimited license, current assets must exceed total
current liabilities by at least $150,000, subject to the Board's
applicable financial documentation requirements.
5. In lieu of demonstrating the required working capital for an
Unlimited license, what surety bond amount may be provided?
A. $175,000
B. $500,000
C. $1,000,000
D. $1,500,000
Rationale: The Board allows an applicant for an Unlimited limitation
to provide a $1 million surety bond in lieu of demonstrating the
specified level of working capital.
6. Which entity is the obligee named on the surety bond used for
the Unlimited license financial requirement?
, A. The project owner
B. The contractor's bank
C. The local building department
D. The State of North Carolina
Rationale: The Board's rule specifies that the required surety bond
lists the State of North Carolina as obligee. The bond provides
protection for persons damaged by specified acts or omissions of the
applicant.
7. What is the maximum project value for a Limited license?
A. $500,000
B. $750,000
C. $1,000,000
D. $1,500,000
Rationale: A Limited license permits a general contractor to undertake
a single project with a value up to $750,000, excluding the cost of land
and certain ancillary land-improvement costs.
8. What is the maximum project value for an Intermediate license?
A. $750,000
B. $1,000,000
(Unlimited Classification) Questions and
Correct Answers (Verified Answers) Plus
Rationale 2027 Q&A| Instant Download Pdf
1. Under North Carolina licensing classifications, what is the primary
scope of a Residential Contractor classification?
A. Commercial buildings only
B. Highway construction and bridge work
C. Construction and demolition of residential units required to
conform to the Residential Building Code
D. Public utility construction only
Rationale: The Residential Contractor classification covers
construction and demolition associated with residential units that are
required to conform to the Residential Building Code. It also includes
certain ancillary site work and specified specialty work connected with
those residences.
, 2. What does an Unlimited limitation permit a North Carolina
general contractor to do?
A. Perform projects up to $750,000
B. Perform projects up to $1,500,000
C. Perform only residential projects under $2 million
D. Act as a general contractor without restriction as to the value of
any single project
Rationale: The Unlimited limitation is not subject to a dollar-value
ceiling for an individual project. The classification still determines the
type of construction work the contractor may perform.
3. Which two concepts determine the scope of a North Carolina
general contractor license?
A. Experience and insurance
B. Bond and examination
C. Classification and limitation
D. Project location and contract duration
Rationale: Classification determines the type of construction work
permitted, while limitation determines the dollar size of projects that
may be undertaken. These are separate components of the license.
, 4. Which financial requirement applies to an applicant seeking an
Unlimited license?
A. $17,000 in working capital
B. $75,000 in working capital
C. $100,000 in working capital
D. $150,000 in working capital
Rationale: For an Unlimited license, current assets must exceed total
current liabilities by at least $150,000, subject to the Board's
applicable financial documentation requirements.
5. In lieu of demonstrating the required working capital for an
Unlimited license, what surety bond amount may be provided?
A. $175,000
B. $500,000
C. $1,000,000
D. $1,500,000
Rationale: The Board allows an applicant for an Unlimited limitation
to provide a $1 million surety bond in lieu of demonstrating the
specified level of working capital.
6. Which entity is the obligee named on the surety bond used for
the Unlimited license financial requirement?
, A. The project owner
B. The contractor's bank
C. The local building department
D. The State of North Carolina
Rationale: The Board's rule specifies that the required surety bond
lists the State of North Carolina as obligee. The bond provides
protection for persons damaged by specified acts or omissions of the
applicant.
7. What is the maximum project value for a Limited license?
A. $500,000
B. $750,000
C. $1,000,000
D. $1,500,000
Rationale: A Limited license permits a general contractor to undertake
a single project with a value up to $750,000, excluding the cost of land
and certain ancillary land-improvement costs.
8. What is the maximum project value for an Intermediate license?
A. $750,000
B. $1,000,000
