North Carolina Building Contractor Licensing
Exam – Limited Questions And Correct
Answers (Verified Answers) Plus Rationales
2026 Q&A | Instant Download Pdf
1. When working under a Limited Building Contractor license in
North Carolina, the maximum single project size is:
A. $500,000
B. $1,000,000
C. $750,000
D. $2,000,000
The Limited classification restricts individual project size to
$750,000.
2. The primary document regulating construction safety on North
Carolina job sites is:
A. NFPA 70
B. OSHA 1926 Standards
C. NC Residential Code
D. AIA A201
OSHA 1926 governs construction safety practices.
3. Which bond guarantees that a contractor will complete work
according to the contract?
A. Bid bond
B. Performance bond
C. Payment bond
, D. Supply bond
Performance bonds assure contract completion.
4. A payment bond ensures that:
A. The owner is financially protected
B. Subcontractors and suppliers are paid
C. The contractor completes the project
D. The work passes inspections
Payment bonds protect subs and suppliers.
5. Which project delivery method provides the owner with a single
point of responsibility?
A. Design–Bid–Build
B. Design–Build
C. CM at Risk
D. GMP Contracting
Design–build uses one entity for design and construction.
6. The NC One-Call law requires utilities to be located before
excavation. How far ahead must a contractor notify?
A. 24 hours
B. 48 hours
C. 72 business hours
D. 5 days
NC requires at least 72 business hours notice.
7. Which financial statement is typically required for licensing?
A. Income statement only
B. Cash flow report
C. Balance sheet
, D. Profit projection
The Board requires a balance sheet to assess financial health.
8. Retainage in North Carolina public projects is limited to:
A. 2%
B. 5%
C. 5% but may be reduced after 50% completion
D. 10%
NC statutes limit retainage to 5% and allow reduction.
9. Which of the following is an indirect cost?
A. Concrete
B. Labor
C. Office rent
D. Lumber
Indirect costs are overhead, not tied to specific tasks.
10. The schedule of values is used to:
A. Track safety issues
B. Allocate the contract amount to specific portions of work
C. Record daily logs
D. Document inspections
Schedule of values breaks down the contract for billing.
11. A lien agent must be designated for projects costing at least:
A. $10,000
B. $20,000
C. $30,000
D. $50,000
NC law requires a lien agent at $30,000+.
Exam – Limited Questions And Correct
Answers (Verified Answers) Plus Rationales
2026 Q&A | Instant Download Pdf
1. When working under a Limited Building Contractor license in
North Carolina, the maximum single project size is:
A. $500,000
B. $1,000,000
C. $750,000
D. $2,000,000
The Limited classification restricts individual project size to
$750,000.
2. The primary document regulating construction safety on North
Carolina job sites is:
A. NFPA 70
B. OSHA 1926 Standards
C. NC Residential Code
D. AIA A201
OSHA 1926 governs construction safety practices.
3. Which bond guarantees that a contractor will complete work
according to the contract?
A. Bid bond
B. Performance bond
C. Payment bond
, D. Supply bond
Performance bonds assure contract completion.
4. A payment bond ensures that:
A. The owner is financially protected
B. Subcontractors and suppliers are paid
C. The contractor completes the project
D. The work passes inspections
Payment bonds protect subs and suppliers.
5. Which project delivery method provides the owner with a single
point of responsibility?
A. Design–Bid–Build
B. Design–Build
C. CM at Risk
D. GMP Contracting
Design–build uses one entity for design and construction.
6. The NC One-Call law requires utilities to be located before
excavation. How far ahead must a contractor notify?
A. 24 hours
B. 48 hours
C. 72 business hours
D. 5 days
NC requires at least 72 business hours notice.
7. Which financial statement is typically required for licensing?
A. Income statement only
B. Cash flow report
C. Balance sheet
, D. Profit projection
The Board requires a balance sheet to assess financial health.
8. Retainage in North Carolina public projects is limited to:
A. 2%
B. 5%
C. 5% but may be reduced after 50% completion
D. 10%
NC statutes limit retainage to 5% and allow reduction.
9. Which of the following is an indirect cost?
A. Concrete
B. Labor
C. Office rent
D. Lumber
Indirect costs are overhead, not tied to specific tasks.
10. The schedule of values is used to:
A. Track safety issues
B. Allocate the contract amount to specific portions of work
C. Record daily logs
D. Document inspections
Schedule of values breaks down the contract for billing.
11. A lien agent must be designated for projects costing at least:
A. $10,000
B. $20,000
C. $30,000
D. $50,000
NC law requires a lien agent at $30,000+.
