A general contractor in NC subcontracts electrical work to an unlicensed electrician for a commercial project. Under NC General Statutes Chapter 87, what is the potential consequence for the general contractor?
Correct Answer
C) License suspension or revocation
NC General Statutes Chapter 87 allows for license suspension or revocation when contractors use unlicensed subcontractors for work requiring licensure.
Why This Is the Correct Answer
Under NC General Statutes Chapter 87, engaging an unlicensed subcontractor for work that requires licensure is a serious violation that exposes the general contractor to license suspension or revocation. The licensing board treats this as professional misconduct that undermines the integrity of the licensing system.
Why the Other Options Are Wrong
Option A: Warning letter only
Option A ('Warning letter only') is incorrect. A warning letter alone is not an authorized consequence for knowingly using unlicensed subcontractors on licensed work under Chapter 87. The statute provides for more significant disciplinary actions.
Option B: Fine up to $1,000
Option B ('Fine up to $1,000') is incorrect. While fines can be part of disciplinary action, stating the consequence is limited to only a $1,000 fine understates the severity. The board's primary and most serious tool is license action, not a capped monetary penalty.
Option D: Mandatory retraining requirement
Option D ('Mandatory retraining requirement') is incorrect. NC Chapter 87 does not prescribe mandatory retraining as a standalone penalty for using unlicensed subcontractors. This is not among the enumerated disciplinary tools available to the NC Licensing Board for General Contractors.
Memory Technique
Remember: unlicensed = unlawful = un-licensed (for you too). If you hire someone without the proper license, YOU could lose YOUR license. The chain of accountability goes upward.
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A subcontractor completed electrical work on March 15th but the general contractor has not paid the $28,000 invoice. Under NC lien law, if the subcontractor wants to preserve lien rights, the latest date to file a claim of lien is: