Becoming a licensed general contractor in North Carolina requires passing both the NC Business and Law Exam and the General Contractor (GC) License Exam. These exams test your understanding of construction practices, business operations, and state-specific regulations. This guide breaks down everything you need to know to pass both exams on your first attempt.
Why These Exams Matter
The NC Business and Law Exam ensures contractors understand business structures, licensing requirements, and project management best practices. The GC License Exam tests your knowledge of construction practices, safety standards, and contract law.
Passing these exams allows you to:
Legally operate as a general contractor in NC.
Bid on projects within your license classification.
Build trust with clients by demonstrating your qualifications.
1. NC Business and Law Exam: What to Expect
The NC Business and Law Exam focuses on the business side of contracting, including licensing, taxes, employment laws, and project management. It’s an open-book exam that requires familiarity with the NASCLA Business and Law Guide.
Exam Overview:
Number of Questions: 50 multiple-choice questions
Time Limit: 2 hours
Passing Score: 70%
Open Book: Yes
4-Week Study Plan:
Week 1: Foundation – Understand the Material
Read 1–2 chapters daily from the NASCLA Business and Law Guide.
Highlight key definitions and licensing requirements.
Tab the book for quick navigation.
Key Focus Areas:
Business Structures (LLC, S-Corp, Sole Proprietorship)
Licensing Requirements for NC Contractors
Construction Contracts and Project Management
Week 2: Deep Dive – Learn & Organize
Re-read highlighted sections and create flashcards.
Take quizzes after each chapter.
Key Focus Areas:
Financial Management (Accounting, Payroll, Taxes)
Lien Laws and Licensing Violations
NC Employment and Safety Laws (OSHA)
Week 3: Practice – Test Your Knowledge
Take full-length practice exams every other day.
Review incorrect answers and revisit weak areas.
Key Focus Areas:
Construction Insurance and Bonding
Contract Law and Risk Management
Environmental and Safety Regulations
Week 4: Final Review & Exam Prep
Skim the entire NASCLA guide one last time.
Take 2–3 more practice exams.
Ensure flashcards and book tabbing are complete.
2. NC General Contractor (GC) License Exam: What to Expect
The GC License Exam tests your understanding of construction methods, safety practices, and state regulations. It’s also an open-book exam using the NASCLA guide and NC-specific resources.
Exam Overview:
Number of Questions: 115 multiple-choice questions
Time Limit: 5 hours
Passing Score: 70%
Open Book: Yes
Steps to Obtain Your License:
Meet Eligibility Requirements:
Be at least 18 years old.
Pass the NC Business and Law exam.
Pass background checks.
Choose Your License Classification:
Limited: Projects up to $750,000
Intermediate: Projects up to $1.5 million
Unlimited: No project limit
Submit Your Application:
Apply via the NC Licensing Board for General Contractors.
Provide proof of financial responsibility.
Pay the application fee: Limited $75, Intermediate $100, Unlimited $125.
Pass the GC Exam:
115 questions, 5 hours, open book, 70% passing score.
3. 6-Week GC Exam Study Plan
Weeks 1–2: Foundation – Learn the Material
Read the NASCLA Guide and NC-specific statutes.
Highlight key definitions and important numbers.
Tab books for quick navigation.
Weeks 3–4: Deep Dive – Master Key Concepts
Take quizzes and review incorrect answers.
Create flashcards for contract terms, safety, and laws.
Focus on OSHA standards, lien laws, and risk management.
Weeks 5–6: Practice & Review – Get Exam Ready
Take at least 3 full-length practice exams.
Improve time management to complete the test within the 5-hour limit.
Aim to score 85% or higher consistently.
4. Book Tabbing System for Exam Success
Using color-coded sticky tabs helps you quickly find answers during the open-book exam. Here’s a recommended system:
Green: Key Definitions (Business structures, lien laws)
Yellow: Important Numbers (taxes, project limits)
Red: NC-Specific Laws (licensing, safety regulations)
Blue: Risk Management (insurance, bonding)
5. Online Practice Resources
Practice exams and study apps can reinforce your knowledge. Here are some trusted resources:
RocketCert: rocketcert.com
Contractor’s Institute: contractorsinstitute.com
Builders License Training Institute: licensetobuild.com
PSI Exams (Official Provider): psiexams.com
Recommended Study Apps:
Quizlet: quizlet.com/mobile
Anki: apps.ankiweb.net
Brainscape: brainscape.com
Pocket Prep: pocketprep.com
6. Exam Day Tips for Success
Arrive Early: Give yourself time to settle in and set up.
Bring Allowed Materials: Ensure your NASCLA guide is properly tabbed.
Manage Your Time: Spend no more than 2 minutes per question.
Review Your Answers: If time allows, double-check flagged questions.
7. Final Thoughts: Stay Consistent and Confident
Passing the NC Business and GC License Exams requires consistent preparation, practice, and the right resources. By following the study plans, using practice exams, and mastering the NASCLA guide, you’ll be well-equipped to succeed.
Key Takeaways:
Study daily (1–2 hours).
Tab your books for quick navigation.
Take multiple practice exams and aim for 85% or higher.
Focus on time management during the test.
How to Pass the NC Business and General Contractor License Exams: A Complete Guide