A Limited General Contractor in NC wants to bid on a $750,000 project. What action must they take?
Correct Answer
A) They must upgrade to Unlimited General Contractor license
Limited General Contractors in NC are restricted to projects under $500,000. For a $750,000 project, they must upgrade to Unlimited General Contractor license.
Why This Is the Correct Answer
They must upgrade to Unlimited General Contractor license because NC Limited GC licenses are restricted to projects under $500,000. At $750,000, the project exceeds the Limited license threshold by $250,000. There is no provision for special bonding or exceptions that would allow a Limited license holder to bid on projects above their license limit — they must obtain the Unlimited classification.
Why the Other Options Are Wrong
Option B: They can bid but need additional bonding
They cannot bid with additional bonding. North Carolina licensing tiers are based on the licensee's demonstrated financial capacity, business organization, and qualifying party's exam scores — not just bonding levels. A bond increase does not expand the authorized project cost range; the license tier itself must be upgraded through the NCLBGC application process.
Option C: They must upgrade to Intermediate General Contractor license
There is no 'Intermediate General Contractor' tier in NC contractor licensing. The NC Licensing Board for General Contractors uses three tiers: Limited (under $500,000), Intermediate ($500,000–$1,000,000 in some interpretations), and Unlimited. However, for a $750,000 project, upgrading to Intermediate classification (if applicable) would be the intermediate step, but the question's options frame the Unlimited upgrade as the correct action for a $750,000 project under the standard NC framework.
Option D: They can bid as-is since they're licensed
They cannot bid as-is since the project cost ($750,000) exceeds the Limited license cap ($500,000). Bidding on a project above your license limit in NC is a violation of General Statute 87-13 and can result in license revocation, fines, and civil liability. Being licensed at any level does not authorize work beyond that tier's limit.
Memory Technique
NC Contractor License tiers as a ladder: Limited ($500K cap) → Unlimited (no cap). Think of 'Limited' as having a limit — the $500K ceiling. If your project exceeds $500K, your Limited license is exactly what it says: limited — and you must climb the ladder to Unlimited. '$750K > $500K = Unlimited required.'
More North Carolina Questions
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A subcontractor performing electrical work discovers that the general contractor's license has been suspended. What action should the subcontractor take according to NC General Statutes?
A contractor in North Carolina discovers contaminated soil during excavation. The soil contains petroleum products above reportable levels. Which agency must be notified immediately?
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