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North CarolinaNC Supplementeasy100% of exam part

Under NC General Statutes Chapter 87, a contractor's license must be renewed every:

Correct Answer

C) 1 year

NC contractor licenses must be renewed annually under NC General Statutes Chapter 87.

Answer Options
A
3 years
B
2 years
C
1 year
D
5 years

Why This Is the Correct Answer

NC General Statutes Chapter 87 explicitly mandates annual renewal of contractor licenses. The NCLBGC (North Carolina Licensing Board for General Contractors) issues licenses on a calendar-year basis, and licensees must renew each year to remain in good standing and legally authorized to contract.

Why the Other Options Are Wrong

Option A: 3 years

A 3-year renewal cycle is not what Chapter 87 requires. While some professional licenses in other fields use multi-year cycles, NC contractor licenses require annual renewal to ensure ongoing compliance with current regulations and continuing education requirements.

Option B: 2 years

A 2-year renewal period does not apply to NC contractor licenses. Biennial renewal may be familiar from other license types, but Chapter 87 is clear that contractor licenses must be renewed every year.

Option D: 5 years

A 5-year renewal cycle would create unacceptably long gaps in regulatory oversight. Chapter 87 requires annual renewal so the Board can regularly verify that licensees continue to meet financial, insurance, and conduct requirements.

Memory Technique

Think '87 = Every Year' β€” Chapter 87 means renew every year. The '8' and '7' both have curves, like the circular loop of an annual cycle.

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