North Carolina (NC) (PU) Public Utilities Contractor Practice Exam
1. Which of the following best describes the NC Public Utilities (PU) Contractor License?
A. A license allowing any type of general contracting work in North Carolina.
B. A specialized license permitting work on public utility systems, such as water, sewer, and gas
distribution pipelines.
C. A real estate broker’s license for selling and leasing utility properties in NC.
D. A specialized license for electrical work on public utilities only.
Correct Answer: B
Explanation: The PU Contractor License in North Carolina authorizes contractors to work on public
utility systems, which include water, sewer, gas, petroleum, and other pipelines or systems used for
public utility services.
2. Which agency issues the PU Contractor License in North Carolina?
A. NC Department of Transportation (NCDOT)
B. North Carolina Licensing Board for General Contractors (NCLBGC)
C. Occupational Safety and Health Administration (OSHA)
D. NC Department of Health and Human Services
Correct Answer: B
Explanation: The North Carolina Licensing Board for General Contractors is responsible for issuing and
regulating all general contractor licenses, including the Public Utilities classification.
3. The main purpose of the PU classification is to:
A. Ensure contractors working on public utility infrastructures meet competency standards.
B. Restrict the number of contractors working on highways in NC.
C. Provide environmental oversight for large-scale developments.
D. License only those who build bridges and tunnels.
Correct Answer: A
Explanation: The PU classification ensures that only qualified contractors, who have demonstrated
knowledge and skills specific to public utility systems, can undertake such specialized projects.
4. Under NC law, a Public Utilities contractor is primarily responsible for:
A. Residential single-family home construction.
B. Welding automobile parts for public transit.
C. The installation, maintenance, and repair of utility lines and systems (e.g., water, sewer, gas).
D. Overseeing hotel and resort development projects.
,Correct Answer: C
Explanation: By definition, Public Utilities contractors deal with construction, installation, maintenance,
and repair of utility lines that provide essential services (water, sewer, gas, etc.).
5. What is the limitation on project size (in dollar value) for a licensed PU contractor in NC without an
intermediate or unlimited license classification?
A. No limitations at all once the contractor passes the exam.
B. Limited to projects up to $30,000.
C. Limited to projects up to $75,000.
D. Limited to projects up to $500,000.
Correct Answer: B
Explanation: In North Carolina, a general contractor license is required for projects costing $30,000 or
more. License classifications (limited, intermediate, unlimited) define financial limits. A limited license
generally restricts contractors to projects of up to $500,000 per project, but a standard public utilities
license typically starts at $30,000 coverage. Always verify the latest rules with the NCLBGC.
6. Which of the following is NOT covered under the scope of a PU license?
A. Installation of natural gas distribution lines.
B. Construction of a water treatment facility’s distribution pipeline.
C. Repair of a residential sewer line connected to a municipal system.
D. Complete electrical wiring inside a commercial building.
Correct Answer: D
Explanation: Electrical wiring inside a building is not under the PU classification; it would fall under an
electrical contractor classification. The PU license focuses on external public utility pipelines and
systems.
7. In North Carolina, a key limitation of the Public Utilities classification is that the contractor:
A. Cannot install pipelines on private property.
B. Cannot perform building construction unless otherwise licensed.
C. Cannot employ subcontractors.
D. Cannot engage in excavation activities.
Correct Answer: B
Explanation: A PU license does not cover general building construction; additional classifications or
licenses are required for building construction and other unrelated trades.
8. The “Public Utilities” classification specifically includes which major infrastructure areas?
,A. Highway and heavy construction
B. Water, sewer, gas, chemical, and slurry pipeline systems
C. Roofing and general carpentry
D. Landscaping and irrigation systems
Correct Answer: B
Explanation: The PU classification typically includes the construction, repair, and maintenance of
systems distributing water, sewer, gas, petroleum, chemical, and slurry products.
9. If a contractor wants to engage in both Public Utilities work and general building construction, they
must:
A. Hold a single PU license, since it covers everything.
B. Hold an unlicensed contractor status if the project is under $10,000.
C. Obtain the appropriate multiple classifications (e.g., Building + PU).
D. Apply for a local permit instead of a state license.
Correct Answer: C
Explanation: To legally perform both public utilities and building construction, contractors must hold the
appropriate license classifications from the NC Licensing Board for General Contractors.
10. If a project includes installing a storm drainage system that connects to a public roadway, the
contractor:
A. Must have the PU classification, since storm drainage systems can fall under public utilities.
B. Does not need a license if the project is under $50,000.
C. Must hold an electrical license, as storm water is controlled by electric pumps.
D. Should apply for a surety bond, but no license is needed.
Correct Answer: A
Explanation: Storm drainage improvements that connect to public right-of-way or public systems
typically require a Public Utilities classification because they involve public infrastructure.
11. Which of the following best describes the “Limited” Public Utilities license?
A. It restricts the type of utility but not the project cost.
B. It restricts the total project cost to a specific threshold.
C. It allows the holder to perform any public utility project of unlimited dollar amount.
D. It applies only to in-state contractors.
Correct Answer: B
Explanation: A “Limited” license restricts the value of the projects you can undertake. In North Carolina,
a limited license has a lower maximum project cost limit compared to “Intermediate” or “Unlimited.”
, 12. When bidding on a public utility project that exceeds a licensed contractor’s current financial limit:
A. The contractor may proceed as long as they have insurance.
B. The contractor may not legally bid on or undertake the project.
C. The contractor must pay a penalty after the project is complete.
D. The contractor can negotiate a one-time exemption with local authorities.
Correct Answer: B
Explanation: Bidding on or undertaking a project beyond a contractor’s licensed financial limitation is a
violation of NC licensing laws. The contractor would need to upgrade their license classification first.
13. A North Carolina Public Utilities Contractor license does NOT include:
A. Above-ground fuel storage tank installation.
B. Water distribution pipeline construction.
C. Repair and installation of sewer lines for municipalities.
D. Commercial electrical system installation inside buildings.
Correct Answer: D
Explanation: Electrical system work inside buildings is under an electrical license, not the PU
classification.
14. In North Carolina, if a contractor holds a PU license and engages in unauthorized building
construction activities:
A. This is acceptable if the project is under $30,000.
B. They can be subject to disciplinary action or fines by the licensing board.
C. They automatically qualify for a residential building license.
D. They must only notify the local building inspector of their intentions.
Correct Answer: B
Explanation: Contractors must only perform work within the scope of their license classifications.
Performing unauthorized work can result in penalties and disciplinary action.
15. The PU license is typically required for contractors dealing with:
A. HVAC installations in multi-family dwellings.
B. The distribution of petroleum, natural gas, chemicals, and slurries through pipelines.
C. Drywall and insulation in commercial buildings.
D. Interior plumbing repairs.
Correct Answer: B
Explanation: The PU classification explicitly includes the distribution and handling of petroleum
products, natural gas, chemicals, and slurries through pipelines.
1. Which of the following best describes the NC Public Utilities (PU) Contractor License?
A. A license allowing any type of general contracting work in North Carolina.
B. A specialized license permitting work on public utility systems, such as water, sewer, and gas
distribution pipelines.
C. A real estate broker’s license for selling and leasing utility properties in NC.
D. A specialized license for electrical work on public utilities only.
Correct Answer: B
Explanation: The PU Contractor License in North Carolina authorizes contractors to work on public
utility systems, which include water, sewer, gas, petroleum, and other pipelines or systems used for
public utility services.
2. Which agency issues the PU Contractor License in North Carolina?
A. NC Department of Transportation (NCDOT)
B. North Carolina Licensing Board for General Contractors (NCLBGC)
C. Occupational Safety and Health Administration (OSHA)
D. NC Department of Health and Human Services
Correct Answer: B
Explanation: The North Carolina Licensing Board for General Contractors is responsible for issuing and
regulating all general contractor licenses, including the Public Utilities classification.
3. The main purpose of the PU classification is to:
A. Ensure contractors working on public utility infrastructures meet competency standards.
B. Restrict the number of contractors working on highways in NC.
C. Provide environmental oversight for large-scale developments.
D. License only those who build bridges and tunnels.
Correct Answer: A
Explanation: The PU classification ensures that only qualified contractors, who have demonstrated
knowledge and skills specific to public utility systems, can undertake such specialized projects.
4. Under NC law, a Public Utilities contractor is primarily responsible for:
A. Residential single-family home construction.
B. Welding automobile parts for public transit.
C. The installation, maintenance, and repair of utility lines and systems (e.g., water, sewer, gas).
D. Overseeing hotel and resort development projects.
,Correct Answer: C
Explanation: By definition, Public Utilities contractors deal with construction, installation, maintenance,
and repair of utility lines that provide essential services (water, sewer, gas, etc.).
5. What is the limitation on project size (in dollar value) for a licensed PU contractor in NC without an
intermediate or unlimited license classification?
A. No limitations at all once the contractor passes the exam.
B. Limited to projects up to $30,000.
C. Limited to projects up to $75,000.
D. Limited to projects up to $500,000.
Correct Answer: B
Explanation: In North Carolina, a general contractor license is required for projects costing $30,000 or
more. License classifications (limited, intermediate, unlimited) define financial limits. A limited license
generally restricts contractors to projects of up to $500,000 per project, but a standard public utilities
license typically starts at $30,000 coverage. Always verify the latest rules with the NCLBGC.
6. Which of the following is NOT covered under the scope of a PU license?
A. Installation of natural gas distribution lines.
B. Construction of a water treatment facility’s distribution pipeline.
C. Repair of a residential sewer line connected to a municipal system.
D. Complete electrical wiring inside a commercial building.
Correct Answer: D
Explanation: Electrical wiring inside a building is not under the PU classification; it would fall under an
electrical contractor classification. The PU license focuses on external public utility pipelines and
systems.
7. In North Carolina, a key limitation of the Public Utilities classification is that the contractor:
A. Cannot install pipelines on private property.
B. Cannot perform building construction unless otherwise licensed.
C. Cannot employ subcontractors.
D. Cannot engage in excavation activities.
Correct Answer: B
Explanation: A PU license does not cover general building construction; additional classifications or
licenses are required for building construction and other unrelated trades.
8. The “Public Utilities” classification specifically includes which major infrastructure areas?
,A. Highway and heavy construction
B. Water, sewer, gas, chemical, and slurry pipeline systems
C. Roofing and general carpentry
D. Landscaping and irrigation systems
Correct Answer: B
Explanation: The PU classification typically includes the construction, repair, and maintenance of
systems distributing water, sewer, gas, petroleum, chemical, and slurry products.
9. If a contractor wants to engage in both Public Utilities work and general building construction, they
must:
A. Hold a single PU license, since it covers everything.
B. Hold an unlicensed contractor status if the project is under $10,000.
C. Obtain the appropriate multiple classifications (e.g., Building + PU).
D. Apply for a local permit instead of a state license.
Correct Answer: C
Explanation: To legally perform both public utilities and building construction, contractors must hold the
appropriate license classifications from the NC Licensing Board for General Contractors.
10. If a project includes installing a storm drainage system that connects to a public roadway, the
contractor:
A. Must have the PU classification, since storm drainage systems can fall under public utilities.
B. Does not need a license if the project is under $50,000.
C. Must hold an electrical license, as storm water is controlled by electric pumps.
D. Should apply for a surety bond, but no license is needed.
Correct Answer: A
Explanation: Storm drainage improvements that connect to public right-of-way or public systems
typically require a Public Utilities classification because they involve public infrastructure.
11. Which of the following best describes the “Limited” Public Utilities license?
A. It restricts the type of utility but not the project cost.
B. It restricts the total project cost to a specific threshold.
C. It allows the holder to perform any public utility project of unlimited dollar amount.
D. It applies only to in-state contractors.
Correct Answer: B
Explanation: A “Limited” license restricts the value of the projects you can undertake. In North Carolina,
a limited license has a lower maximum project cost limit compared to “Intermediate” or “Unlimited.”
, 12. When bidding on a public utility project that exceeds a licensed contractor’s current financial limit:
A. The contractor may proceed as long as they have insurance.
B. The contractor may not legally bid on or undertake the project.
C. The contractor must pay a penalty after the project is complete.
D. The contractor can negotiate a one-time exemption with local authorities.
Correct Answer: B
Explanation: Bidding on or undertaking a project beyond a contractor’s licensed financial limitation is a
violation of NC licensing laws. The contractor would need to upgrade their license classification first.
13. A North Carolina Public Utilities Contractor license does NOT include:
A. Above-ground fuel storage tank installation.
B. Water distribution pipeline construction.
C. Repair and installation of sewer lines for municipalities.
D. Commercial electrical system installation inside buildings.
Correct Answer: D
Explanation: Electrical system work inside buildings is under an electrical license, not the PU
classification.
14. In North Carolina, if a contractor holds a PU license and engages in unauthorized building
construction activities:
A. This is acceptable if the project is under $30,000.
B. They can be subject to disciplinary action or fines by the licensing board.
C. They automatically qualify for a residential building license.
D. They must only notify the local building inspector of their intentions.
Correct Answer: B
Explanation: Contractors must only perform work within the scope of their license classifications.
Performing unauthorized work can result in penalties and disciplinary action.
15. The PU license is typically required for contractors dealing with:
A. HVAC installations in multi-family dwellings.
B. The distribution of petroleum, natural gas, chemicals, and slurries through pipelines.
C. Drywall and insulation in commercial buildings.
D. Interior plumbing repairs.
Correct Answer: B
Explanation: The PU classification explicitly includes the distribution and handling of petroleum
products, natural gas, chemicals, and slurries through pipelines.
