Who licenses concrete work in North Carolina
Concrete has no board of its own in North Carolina. The license that controls concrete flatwork, foundations and masonry contracting is the general contractor license issued by the North Carolina Licensing Board for General Contractors, at 5400 Creedmoor Road in Raleigh. The board reaches the trade through the definition in G.S. 87-1. Anyone who, for a fixed price, commission, fee or wage, bids upon or constructs any building, highway, public utilities work, grading, improvement or structure is a general contractor once the cost of the undertaking reaches the statutory threshold. A footing and slab package, a parking lot pour and a block retaining wall are all improvements or structures under that wording. Licensing is a state function. No North Carolina city or county issues its own concrete contractor license. Cities and counties issue building permits and inspect the work, and G.S. 87-14 makes the local building inspector the gatekeeper who checks that the state license exists before a permit is released. That split matters when you are quoting work. The board decides whether you may legally hold the contract. The county or city decides whether the pour gets a permit and an inspection. Both have to line up on the same job. The board also runs a complaint and investigation staff with field investigators assigned by region, and it will take a complaint against an unlicensed contractor as well as a licensed one.
Sourcesnclbgc.org 1ncleg.gov 2ncleg.gov 3nclbgc.org 4
The $40,000 threshold and the jobs it catches
G.S. 87-1(a) sets the trigger at a cost of the undertaking of forty thousand dollars ($40,000) or more. The board states the same rule on its home page: if a project is valued at $40,000 or more, the general contractor must hold a state license. Below that figure, no state general contractor license applies to concrete work. A $9,000 patio, a $15,000 residential driveway replacement and a $30,000 sidewalk run need no license from this board. A $48,000 foundation package does. The figure is the cost of the undertaking, not your profit and not the concrete alone, so materials, labor, pumping, reinforcing and finishing all count toward it. Splitting one job into separate contracts to stay under the number is the practice the board investigates. G.S. 87-1(b) carves out a short list. Firms furnishing or erecting industrial equipment, power plant equipment, radial brick chimneys and monuments are outside the Article. So is an owner who constructs or alters a building on land the owner holds, if the building is intended solely for that owner and the owner complies with G.S. 87-14. A twelve month occupancy test backs that exemption up. Farmers building on their own farm land for their own use are also excluded. None of those exemptions help a concrete subcontractor working for somebody else. The same $40,000 figure appears again in G.S. 87-14 for permits and for the lien agent designation on improvements.
Sourcesncleg.gov 1nclbgc.org 2ncleg.gov 3
Classifications that reach concrete and masonry
Rule 21 NCAC 12A .0202 sets the classifications, and concrete appears in several of them. The Building classification covers all building construction and demolition, and the board spells out that it includes parking decks, all site work, grading and paving of parking lots, driveways, sidewalks and gutters, storm drainage, and retaining or screen walls. Building also covers work done under the specialty classifications of S(Concrete Construction) and S(Masonry Construction), among others. The Residential classification covers construction of residential units built to the residential building code, plus all site work, driveways and sidewalks ancillary to those structures, and it covers S(Masonry Construction) work done as part of those residential units. The Highway classification covers paving of all types, bridge and culvert construction and repair, parking decks, sidewalks, curbs, gutters and storm drainage, and it covers S(Concrete Construction) work. The Public Utilities classification picks up curbs and gutters that are ancillary to water and wastewater treatment construction. The Specialty classification covers the discrete trades listed in Rule .0202 and nothing wider. A licensee who qualifies in every classification in the rules is designated unclassified. The practical reading for a concrete contractor is that a broad classification swallows the narrow one. Hold Building and you already carry the concrete and masonry specialty scope. Hold only the specialty and you are confined to what that single paragraph of the rule describes.
Sourcesnclbgc.org 1nclbgc.org 2nclbgc.org 3
What the concrete specialty covers, and what it leaves out
The wording of S(Concrete Construction) in Rule .0202 surprises most flatwork contractors. It covers the construction, demolition and installation of foundations, pre-cast silos and other concrete tanks or receptacles, pre-stressed components, and Gunite applications. Then it excludes bridges, streets, sidewalks, curbs, gutters, driveways, parking lots and highways. In other words, the specialty built for concrete is a foundations and structures classification. The flatwork most residential and commercial concrete crews sell every day is written out of it. Sidewalks, curbs, gutters, driveways and parking lots sit in the Building and Highway classifications instead. S(Masonry Construction) is a separate specialty. It covers demolition and installation, with or without the use of mortar or adhesives, of brick, concrete block, gypsum partition tile, pumice block and other lightweight and facsimile units and products common to the masonry industry. A block foundation wall or a brick veneer job falls there. A poured footing falls under the concrete specialty. A driveway apron falls under neither. The board's public license search also lists S(Sidewalk Curb & Gutter) among its classification types, so older licenses in that category exist and can be searched. Read the rule before you pick, because Rule .0403 requires a separate examination for each classification you want, and adding a classification later means another exam. Getting the classification wrong is not a paperwork problem. It means the contract you signed is outside the scope your license authorizes.
Sourcesnclbgc.org 1nclbgc.org 2portal.nclbgc.org 3
Choosing the right classification for your concrete work
Start from the work you actually sell. A crew pouring footings, slabs on grade, grade beams, pier caps and tanks can qualify on S(Concrete Construction) and stay inside the rule. A crew pouring driveways, aprons, sidewalks, curb and gutter or parking lots cannot rely on that specialty, because the rule excludes those items by name. Those contractors need Building, which covers grading and paving of parking lots, driveways, sidewalks and gutters, or Highway, which covers sidewalks, curbs, gutters and paving of all types, or Residential where the work is ancillary site work for code-built residences. A mixed concrete and masonry outfit has two routes. Qualify in Building and the license already covers both the concrete and the masonry specialty scope. Or qualify in S(Concrete Construction) and S(Masonry Construction) separately and sit an examination for each. Rule .0202 also reminds you that the Specialty classification cannot reach work that another North Carolina board licenses, and G.S. 87-12 confirms the reverse: a general contractor license that qualifies you for work described in G.S. 87-10 lets you perform that work without an additional occupational license. Classification choice drives your bid list more than anything else on the application. Public owners and general contractors check the classification on the certificate, not just the license number, so a specialty that excludes sidewalks will cost you sidewalk packages. Pick the classification that matches the scope lines you intend to bid.
Sourcesnclbgc.org 1nclbgc.org 2ncleg.gov 3
Who qualifies, and what the board asks for
G.S. 87-10(a) lists what an applicant must satisfy before being entitled to an examination. Be at least 18 years of age. Possess good moral character as determined by the board. Provide evidence of financial responsibility as determined by the board. Submit the appropriate application fee. Consent to a criminal background check if the board requires one. The statute sets no number of years in the field and no classroom hours, which separates North Carolina from states that count documented experience. The board instead leans on the examination and on financial responsibility. Every applicant names an individual who has passed the board's examination. That person is the qualifier or qualifying party, and where an entity has several, the board's rules tie renewal duties to at least one of them. Rule .0303 lists what the application itself carries: social security numbers for examinees and qualifiers and tax identification numbers for corporate applicants, contact information, the name of the business the licensee will operate under, the requested limitation and classifications, information and certified court records on all crimes of which the applicant and qualifiers have been convicted, disciplinary history with this or any other licensing agency, the financial responsibility evidence, and the fee. New applicants consent to a background check run by a third-party vendor and pay that vendor directly. The rule names who submits to it: the sole proprietor, the president of a corporation, all managers and members of an LLC, or all partners of a partnership.
Sourcesncleg.gov 1nclbgc.org 2nclbgc.org 3
License limitations and the bond that replaces working capital
North Carolina does not issue one size of general contractor license. It issues three limitations, and the limitation caps the value of any single project. A limited license allows any single project with a value of up to seven hundred fifty thousand dollars ($750,000), excluding land cost and ancillary costs to improve the land. An intermediate license allows up to one million five hundred thousand dollars ($1,500,000) on the same basis. An unlimited license carries no restriction on single project value. Each tier has its own financial test. For a limited license, current assets must exceed total current liabilities by at least seventeen thousand dollars ($17,000), or total net worth must reach eighty thousand dollars ($80,000). Intermediate requires working capital of at least seventy-five thousand dollars ($75,000). Unlimited requires at least one hundred fifty thousand dollars ($150,000). Intermediate and unlimited applicants show it through an agreed-upon procedures report on a board form or an audited financial statement from a CPA or an independent public accountant. Rule .0204(e) gives an alternative. Instead of showing working capital, an applicant may post a surety bond of one hundred seventy-five thousand dollars ($175,000) for limited, five hundred thousand dollars ($500,000) for intermediate, or one million dollars ($1,000,000) for unlimited. The surety must hold an A.M. Best rating of A- or better and the bond runs continuously, names the State of North Carolina as obligee, and covers breach of a construction contract. If the surety cancels, both parties notify the board within 30 days, and the license is suspended if proof of compliance does not follow within 30 days.
Sourcesnclbgc.org 1nclbgc.org 2
The examination
Computer based examinations for the board are administered by PSI Examination Services, and PSI publishes a candidate information bulletin. Rule .0404 sets the passing mark: a score of at least 70. Rule .0403 requires one different examination for each classification of general contracting you seek, so a contractor who wants both S(Concrete Construction) and S(Masonry Construction) sits two. Rule .0402 says the examination tests the criteria in G.S. 87-10(b) and the qualifier's knowledge of general contracting within the specific classification described in Rule .0202, and it adds that all applicants, including those seeking reciprocity from other jurisdictions, are tested on the board's own laws and rules. The statutory subject list is worth reading before you schedule. It covers the practical application of your knowledge of contracting, reading plans and specifications, relevant matters in the North Carolina State Building Code, estimating costs, construction, ethics, the responsibilities of a contractor to the public, state law on contractors, construction and liens, and the requirements of the Sedimentation Pollution Control Act of 1973 and the rules adopted under it. That last item is not decoration for a concrete contractor. Sediment control is the part of the exam that maps onto what inspectors will write you up for on a real site. G.S. 87-10(d1) lets the board require a new application if a qualifier asks to sit an examination a third or later time. Scheduling instructions come after the board approves the application.
Sourcesnclbgc.org 1nclbgc.org 2ncleg.gov 3
What it costs
Rule .0304 fixes the application fees charged by the board. An application for a limited license costs $75.00. An intermediate application costs $100.00. An unlimited application costs $125.00. Raising your limitation later is a separate charge: $100.00 for an increase to intermediate and $125.00 for an increase to unlimited. Late renewal runs $10.00 per month for every month or part of a month after the first day of January. All fees charged by the board are non-refundable, and G.S. 87-10(a1) repeats that the fees accompanying any application or examination are nonrefundable. The examination fee is separate and is paid to the board or to the contracted provider. G.S. 87-10(a1) caps it at one hundred dollars ($100.00). The same subsection caps the application fee the board may charge at $125.00 for unlimited, $100.00 for intermediate and $75.00 for limited, which is why the rule and the statute match. The criminal background check is billed on top and is paid directly to the third-party vendor. One more fee touches concrete contractors who build or alter houses. G.S. 87-15.6 directs the city or county building inspector to collect ten dollars ($10.00) from the general contractor for each single-family dwelling unit constructed or altered under a permit, for the Homeowners Recovery Fund. The local inspector forwards nine dollars ($9.00) to the board and keeps one dollar ($1.00). The board may suspend collection for a year when the fund is adequate, and it notifies inspectors when it does.
Sourcesnclbgc.org 1ncleg.gov 2nclbgc.org 3
Renewal, expiration and continuing education
G.S. 87-10(e) sets a calendar year license. A license expires on the first day of January following its issuance or renewal and becomes invalid 60 days after that date unless it is renewed with board approval. Renewal applications carry a fee the statute caps at one hundred twenty-five dollars ($125.00) for unlimited, one hundred dollars ($100.00) for intermediate and seventy-five dollars ($75.00) for limited. A renewal that arrives on or after January 1 carries a late payment of ten dollars ($10.00) for each month or part of a month after January. Renewal also requires evidence of continued financial responsibility, and Rule .0503 has the licensee attest to that. Let it slide too long and the license is gone: after four years invalid, the board will not renew, the license is archived, the number is never reissued, and you reapply as a new applicant. Continuing education is narrower than contractors expect. G.S. 87-10.2 requires eight hours a year, two of them a mandatory board-approved course and six elective, and it applies to a licensee holding a building contractor, residential contractor or unclassified classification. At least one qualifier completes it for the license to stay valid. Up to four elective hours carry forward one calendar year. Credit is only given for live instruction by a board-approved instructor, including proctored video or internet delivery. The statute does not name the specialty classifications, so a concrete contractor who holds only S(Concrete Construction) or S(Masonry Construction) should confirm the board's current position before assuming the hours apply.
Sourcesncleg.gov 1ncleg.gov 2nclbgc.org 3
Reciprocity and out-of-state concrete contractors
G.S. 87-15.1 allows reciprocity but does not promise it. To the extent other states that license general contractors provide for similar action, the board may in its discretion grant licenses of the same or equivalent classification to contractors licensed by those states, without written examination, on satisfactory proof that the applicant's qualifications equal those of holders of similar North Carolina licenses, and on payment of the required fee. The board's rules add the mechanics. An applicant claiming reciprocity submits a copy of the license from the other state, certified by that state's board as a copy of a valid license. The applicant must have taken and passed the examination offered in the state the reciprocity is claimed from, or an examination offered by the National Association of State Contractors Licensing Agencies. In every case the applicant still has to take and pass the board's North Carolina law, rule and building code examination before licensure. Rule .0402 repeats that point: all applicants, including reciprocity applicants, are tested on the board's laws and rules. So a concrete contractor crossing a state line gets relief from the trade examination, not from North Carolina law. The financial responsibility test, the classification choice, the assumed name certificate and the renewal calendar all apply the same way they apply to a contractor who has worked in Raleigh for twenty years. Plan the timeline around the law examination and the financial statement, not around the out-of-state certificate.
Sourcesnclbgc.org 1nclbgc.org 2
Unlicensed work, discipline and the permit gate
G.S. 87-13 makes unlicensed contracting a Class 2 misdemeanor. The section reaches anyone not duly authorized who contracts for or bids upon the projects enumerated in G.S. 87-1, anyone who presents another contractor's license certificate as their own, anyone who gives false or forged evidence to the board, anyone who uses an expired or revoked certificate, and anyone who falsely claims or suggests in connection with regulated business activity that a person or firm is licensed. It also reaches an architect or engineer who recommends awarding a contract to someone not properly licensed, unless the recommendation relied on erroneous written information from the licensing board. The board may spend its own funds to help prosecute violations. Separately, G.S. 87-11 lets the board refuse to issue or renew, revoke, suspend or restrict a license, or issue a reprimand, for fraud or deceit in obtaining a license, gross negligence, incompetency, misconduct in practice, or willful violation of the Article, and it can restrict a person's ability to act as a qualifying party. The enforcement most concrete contractors actually meet is the permit counter. G.S. 87-14 says an applicant for a building or other permit where the cost is $40,000 or more must furnish satisfactory proof that the applicant or the person managing the construction is licensed or exempt, and must furnish proof of workers compensation insurance. An owner claiming the self-build exemption signs a verified affidavit, which the inspector sends to the board, and a permit obtained on a false exemption can be revoked.
Sourcesncleg.gov 1ncleg.gov 2nclbgc.org 3
License numbers, advertising and how a customer checks you
North Carolina's display rule is short and easy to break. Rule 21 NCAC 12A .0501(a) states that license numbers shall be included on all contracts and bids. That is the board rule to build into your estimate template, your proposal cover page and your subcontract forms, because a bid for a slab package without the number on it does not comply. A second rule governs permits: a licensee shall not allow a building permit to be obtained, or allow its license number to appear on a permit application, unless the licensee owns the property or has an agreement with the owner or the owner's designee to perform the work described in the permit. Lending your number to a crew you are not actually running is the exact conduct that rule forbids. Naming is regulated too. Rule .0209 requires a certificate of assumed name with the application, and it bars an applicant or licensee from using an assumed name already used by another licensee, or a name so similar that it could confuse or mislead the public. G.S. 87-13 makes it a misdemeanor to falsely claim or suggest licensure in regulated business activity, so calling yourself licensed while invalid carries criminal exposure. Customers verify you at the board's public search, which accepts license number, qualifier number, company name, address or classification, and lists S(Concrete Construction) and S(Masonry Construction) among the searchable types. The board also hosts a complaint request form and regional investigators.
Sourcesnclbgc.org 1ncleg.gov 2portal.nclbgc.org 3nclbgc.org 4
Charlotte and Mecklenburg County
Permits in Charlotte run through Mecklenburg County Code Enforcement rather than a city building department. The county publishes a rule concrete contractors should read twice: permits may not be required for projects with work costing $40,000 or less, unless the work involves the addition, repair or replacement of load bearing structures, the addition or a change in the design of a plumbing system, the addition, replacement or change in the design of a heating or air conditioning system, or the addition of roofing other than replacement with like grade fire resistance material. Most structural concrete lands in that first exception. A footing, a foundation wall, a pier, a grade beam or a structural retaining wall is load bearing, so the dollar figure does not exempt it. A plain patio slab or a driveway replacement may sit outside permitting on cost alone. Confirm it in writing with Code Enforcement before you pour, because the exception list is the county's and it changes. The county also says permits are grouped by the specific project and paid for by the general contractor or by the homeowner acting as their own general contractor, and that separate permits are required for building, electrical, heating, air conditioning and plumbing work. Homeowner Internet Permitting exists for owners pulling their own. None of that touches the state license. G.S. 87-14 still requires the inspector to see proof of licensure and workers compensation coverage once the cost reaches $40,000.
Sourcescode.mecknc.gov 1ncleg.gov 2
Raleigh right of way work and driveway tie-ins to state roads
Flatwork in a public street, sidewalk or verge is a separate permit with its own money attached. Raleigh's Right-of-Way Services group issues permits for sidewalk occupancy with a pedestrian detour, lane occupancy and temporary full street closures, and applicants start in the city's Permit and Development Portal. For work involving construction, repair, renovation, maintenance and erection upon, over, under or adjacent to the street, sidewalk or other public property within the right of way, Raleigh requires a certificate of insurance and a $5,000 performance bond. The city states the rule plainly: any contractor performing work in the public right of way is required to provide a minimum of $5,000 bond during the application process, and contractors must have general liability insurance. Traffic control and pedestrian plans must meet the Americans with Disabilities Act, the Public Right-of-Way Accessibility Guidelines and the Manual on Uniform Traffic Control Devices. Outside municipal limits, or where the road is state maintained, NCDOT controls the connection. Rule 19A NCAC 02B .0601 says any person or corporation that wants to construct a driveway or other connection within the right of way of a state system street or highway must secure a permit from the Department of Transportation before beginning construction. Residential driveway connections are normally excluded, but NCDOT may include them where access involves a public safety hazard, a highway construction project or heavy drainage cost. Failure to secure the permit first can mean removal of the driveway or denial of access. Applications go to the District Engineer, and the more restrictive of the state, county or municipal rule applies.
Sourcesraleighnc.gov 1connect.ncdot.gov 2
Workers compensation, sediment control and sales tax on concrete
Three statewide obligations hit concrete contractors regardless of license size. Workers compensation comes first. The North Carolina Industrial Commission states that in general all businesses employing three or more employees on a regular basis are covered by the Workers Compensation Act, with exemptions set out in G.S. 97-13. Corporate officers count toward the three, though they may exclude themselves from the policy. Sole proprietors, partners and LLC members are not automatically counted but may elect coverage for themselves. G.S. 87-14 then requires proof of coverage at the permit counter. Sediment control comes second. G.S. 113A-57 requires that whenever land-disturbing activity disturbing more than one acre is undertaken on a tract, the person conducting it install erosion and sedimentation control devices sufficient to retain the generated sediment within the tract, and provide permanent ground cover. Slopes left exposed must be planted or otherwise protected within 21 calendar days of completing any grading phase. The DEQ Division of Energy, Mineral and Land Resources requires submission of erosion and sedimentation control plans and handles their review, inspection and enforcement. Sales tax comes third, and the classification is favorable. NCDOR lists the replacement or installation of roads, driveways, parking lots, patios, decks and sidewalks as a capital improvement, which makes the job a real property contract. The contractor is treated as the consumer of the items purchased to fulfill it, and Form E-589CI, the Affidavit of Capital Improvement, is generally issued and kept on file. Repair, maintenance and installation services are taxed differently and exclude services used to fulfill a real property contract.
Sourcesic.nc.gov 1ncleg.gov 2ncleg.gov 3deq.nc.gov 4ncdor.gov 5ncdor.gov 6