A residential contractor in NC wants to bid on a $125,000 project but currently holds an Intermediate license. What action must be taken?
Correct Answer
A) Either B or C
Projects over $100,000 require an Unlimited license. The contractor can either upgrade their license or partner with an Unlimited license holder.
Why This Is the Correct Answer
In North Carolina, residential contractors with Intermediate licenses are limited to projects under $100,000. For a $125,000 project, the contractor exceeds this threshold and must either upgrade to an Unlimited license (which allows projects of any value) or partner with someone who holds an Unlimited license. Both options B and C are valid solutions, making 'Either B or C' the correct comprehensive answer.
Why the Other Options Are Wrong
Option B: Proceed with the current license
Proceeding with the current Intermediate license would violate NC licensing regulations. Intermediate licenses are specifically limited to projects under $100,000, and attempting a $125,000 project with this license classification would result in regulatory violations and potential penalties for operating outside the scope of the license.
Option C: Upgrade to an Unlimited license
While upgrading to an Unlimited license is one valid solution, this answer is incomplete. It ignores the alternative option of partnering with an Unlimited license holder, which is equally acceptable under NC regulations. The question asks what action 'must be taken,' and there are two viable paths.
Option D: Partner with an Unlimited license holder
Partnering with an Unlimited license holder is indeed a valid solution, but this answer is incomplete. It fails to acknowledge that upgrading to an Unlimited license is also an acceptable option. Since both upgrading and partnering are viable solutions, selecting only one option doesn't fully address the question.
Memory Technique
Remember 'I-100-U': Intermediate stops at $100k, Unlimited has no limit. When you exceed Intermediate limits, you can Upgrade or Unite (partner).
More nc-supplement Questions
A contractor discovers contaminated soil during excavation on a commercial project in Charlotte. Under NC environmental regulations, what is the first required action?
A North Carolina contractor completes a $45,000 residential addition project. The homeowner refuses to pay the final $8,000. What is the filing deadline for a mechanic's lien under NC lien law?
A residential contractor in Charlotte is building a deck addition. Which inspection is typically required first under NC building codes?
A contractor performs work on a residential property in North Carolina but is not paid. The work was completed on March 15th, and the last material was delivered on March 20th. What is the deadline to file a claim of lien?
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?
A contractor performing work on a North Carolina highway project encounters a suspected archaeological artifact. What is the required action under NC environmental regulations?
Calculate the workers' compensation premium for a NC roofing contractor with $250,000 in annual payroll and a rate of $18.50 per $100 of payroll:
Calculate the lien amount a subcontractor can claim on a $180,000 project where they provided $35,000 in materials and labor, but the general contractor still owes them $12,000:
What is the maximum project value for an Intermediate General Contractor in North Carolina?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
Which NC building code inspection must be completed before installing drywall in a residential project?
Next Question
Calculate the lien amount a subcontractor can claim under NC lien law for a project where they were contracted for $28,000, completed $24,500 worth of work, and were paid $18,000: