A contractor with a Limited license wants to take on a $65,000 project. What is required?
Correct Answer
A) Upgrade to Intermediate license
Limited licenses typically cover projects up to $50,000. A $65,000 project requires an Intermediate license (up to $100,000).
Why This Is the Correct Answer
NC contractor license classifications set project value ceilings: Limited covers projects up to $50,000, Intermediate covers up to $100,000, and Unlimited has no ceiling. A $65,000 project exceeds the Limited cap, so the contractor must upgrade to at least the Intermediate license before proceeding.
Why the Other Options Are Wrong
Option B: Obtain special project permit
There is no 'special project permit' mechanism under NC GS Chapter 87 that allows a Limited license holder to exceed the $50,000 threshold. License classification — not permits — controls project value limits.
Option C: Nothing, proceed with current license
Proceeding with the current Limited license would be a violation. The $65,000 project exceeds the $50,000 cap for Limited license holders, exposing the contractor to disciplinary action and potential civil liability.
Option D: Upgrade to Unlimited license
Upgrading to an Unlimited license would also legally permit the work, but it is not required — the Intermediate license is sufficient for a $65,000 project and is the minimum required upgrade.
Memory Technique
NC license tiers by dollar: Limited = $0–$50K, Intermediate = $50K–$100K, Unlimited = $100K+. A $65,000 job sits in the Intermediate band. Think of the tiers as Small, Medium, Large.
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