North Carolina General Contractors License Bonds

Each state requires contractors to be licensed and bonded, and requirements differ from state to state. General contractors in North Carolina must meet certain net worth requirements or obtain a surety bond in order to apply for a contractor’s license. The first step in determining if a general contractor must obtain a surety bond is determining the type of general construction work and which project limitation amount is desired.  Contractors can expect to pay between 1% to 3% of the bond amount as the premium. When applying for this bond, contractors should expect to submit personal and business financial statements.

There are five subcategories of general contractor licenses; building, residential, highway and public utilities, and specialty contractors. Within each subcategory, there are 3 classifications – limited, intermediate, and unlimited types of licenses.

Limited License

A limited license entitles a general contractor to perform work on any single project up to $500,000. The general contractor must have a total net worth greater than $80,000 or current assets that exceed total current liabilities by at least $17,000. If not, they must obtain a $175,000 surety bond.

Intermediate License

An intermediate license entitles a general contractor to perform work on a single project with a value up to $1,000,000. This cost does not include the cost of the land in which the project is being performed or any costs to improve the land. The contractor must have at least $75,000 worth of current assets that exceed their total current liabilities. If that requirement is not met, the contractor will need to obtain a $500,000 surety bond.

Unlimited License

An unlimited license entitles a general contractor to perform work without restriction for a single project. The contractor must have at least $150,000 of current assets exceeding current liabilities. If not, they must obtain a $1,000,000 surety bond.