Calculate the required bond amount for a North Carolina unlimited general contractor with a license classification allowing projects up to $2,000,000:
Correct Answer
B) $20,000
NC requires a $20,000 bond for unlimited general contractor licenses regardless of the project size capability.
Why This Is the Correct Answer
NC requires a $20,000 surety bond for an unlimited general contractor license. This flat bond amount applies regardless of the contractor's project capacity threshold. The bond is set by statute and does not scale with the maximum project size.
Why the Other Options Are Wrong
Option A: $25,000
$25,000 is not the NC statutory bond amount for a general contractor license. This figure may be confused with bond amounts in other states or with NC's limited tier requirements.
Option C: $15,000
$15,000 is below the required amount and does not correspond to any NC contractor license tier.
Option D: $50,000
$50,000 significantly overstates the required bond. This amount may be confused with the bond requirements of other professions or other states.
Memory Technique
NC bond = $20,000 — 'Twenty thousand for the Tar Heel State.' The number 20 appears in NC's area code prefix (910, 919, 828, 704, 336 — no direct link, so use: NC = 'No Calculation needed, it's always $20K').
More North Carolina Questions
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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?
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A North Carolina contractor fails to pay subcontractors $45,000 on a residential project. Under NC lien law, what is the maximum time period after substantial completion that a subcontractor has to file a claim of lien on real property?