Construction Law
Before You Bid: Understand North Carolina Licensing Requirements
In the State of North Carolina, general contractors that participate in residential and building construction projects that exceed $30,000 are required by law to have a license. This means that if you are interested in bidding on any projects, you must be licensed as a general contractor before submitting a bid. If you have any questions regarding licensing or bidding on projects, please consult with a Charlotte contractor license defense attorney.
License Limitations
The North Carolina Licensing Board for General Contractors places limitations on the type of work and the amount of money in a particular contract that a contractor can take on. A contractor can serve as the qualifier for no more than two licenses — their own and one additional corporation — as long as they are actively engaged in that corporation’s work for the majority of the hours for which they work. If you desire to increase your license limitations, contact the board to fill out the appropriate forms.
When is a General Contractor License Not Required?
According to North Carolina general statutes found in G.S. Chapter 87, there are several instances in which a general contractor license is not required for a construction or repair contract.
- If the contract is less than $30,000
- If the project is owned and occupied by the person or entity performing the work
- Contracts that are intended for “furnishing or erecting industrial equipment, power plant equipment, radial brick chimneys, and monuments.”
- If performing all the general contractor work on a public building project, and that work does not exceed 25% percent of the total bid price
- If erecting/installing modular buildings and meets the $5,000 surety bond requirement
The general statutes that govern contractor licensing are complex in nature; therefore, it is highly recommended that your review the statutes, contact the licensing board, and speak with a reputable Charlotte contractor license defense attorney if you need further assistance.
Failure to Comply
If licensing requirements are specified in the bid specifications and you bid without a license, your bid will likely be rejected as you will be considered a non-responsive bidder. Noncompliance with North Carolina licensing requirements can lead to a hearing before the licensing board and sanctions against your business. Additionally, the contract will be unenforceable. However, subcontractors who have preserved their lien rights can enforce a lien against the property although the contract is unenforceable on the contractor’s end.
The bottom-line: If you want to avoid missing out on lucrative bidding opportunities, acquire and maintain the appropriately license(s) to avoid any legal issues.
If you would like to speak with a Charlotte contractor license defense lawyer, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.