Page 1 of 93
North Carolina Residential Contractor Exam
Actual exam Questions with Correct Answers
and explanations LATEST THIS YEAR -JUST
RELEASED
Summarized Exam Coverage – NC Residential Contractor
NC Licensing Board requirements (application, eligibility, financial limits), NC General Statutes (Chapter
87, mechanics liens), NC Residential Code (building, plumbing, mechanical, energy), OSHA construction
safety (fall protection, HAZCOM), site work & erosion control, foundations & concrete, framing &
carpentry, roofing, siding & exterior finishes, interior finishes, mechanical/electrical/plumbing basics,
estimating & quantity take-offs, contract law & change orders, bonds (bid, performance, payment),
insurance (workers’ comp, general liability, builder’s risk), project management & scheduling, and ethics
& lien law.
1. A contractor bids a single-family home project at $45,000 total cost. According to NC licensing law,
this project requires:
A) No license, since it is under $50,000
B) A Residential Contractor license because the project exceeds $40,000
C) Only a Home Improvement registration
D) A Building Contractor license
Answer: B – NC requires a Residential Contractor license for any project where the total cost exceeds
$40,000 .
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2. A sole proprietor general contractor is sued by a homeowner for faulty foundation work. Which
business structure provides the least personal liability protection?
A) Limited Liability Company
B) Corporation
C) Sole Proprietorship
D) Partnership
Answer: C – Sole proprietors have unlimited personal liability; LLCs and corporations shield personal
assets .
3. A contractor fails to pay a lumber supplier. The supplier wants to file a lien against the homeowner’s
property. Which NC statute governs mechanics’ liens?
A) Chapter 44A of the NC General Statutes
B) Chapter 143 of the NC General Statutes
C) NC Building Code
D) NC Environmental Law
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Answer: A – Chapter 44A specifically addresses mechanics’ liens and related procedures in North
Carolina .
4. The NC Licensing Board for General Contractors requires which of the following to demonstrate
financial responsibility for an Intermediate license?
A) Current assets exceeding liabilities by at least $17,000
B) Current assets exceeding liabilities by at least $75,000
C) Net worth of at least $80,000
D) A $50,000 surety bond
Answer: B – Intermediate license requires current assets exceed liabilities by $75,000; Limited requires
$17,000 .
5. A contractor excavates a foundation on a sloped lot. Which environmental regulation governs
stormwater runoff from the site?
A) NC Building Code Chapter 11
B) Sedimentation and Erosion Control Law
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C) NC Energy Conservation Code
D) Wetlands Protection Act
Answer: B – The Sedimentation and Erosion Control Law regulates stormwater management to
minimize runoff and pollution .
6. An employee falls from a second-story deck while installing railings. The height is 8 feet above ground.
OSHA requires fall protection at what minimum height in construction?
A) 4 feet
B) 6 feet
C) 8 feet
D) 10 feet
Answer: B – OSHA mandates fall protection for construction workers at heights over 6 feet .
7. A contractor wants to qualify for a Residential license without traditional construction supervision
experience. Which alternative is acceptable under NC rules?
A) 60 hours of home inspection training
B) A bachelor’s degree in business with 1 year of design experience
North Carolina Residential Contractor Exam
Actual exam Questions with Correct Answers
and explanations LATEST THIS YEAR -JUST
RELEASED
Summarized Exam Coverage – NC Residential Contractor
NC Licensing Board requirements (application, eligibility, financial limits), NC General Statutes (Chapter
87, mechanics liens), NC Residential Code (building, plumbing, mechanical, energy), OSHA construction
safety (fall protection, HAZCOM), site work & erosion control, foundations & concrete, framing &
carpentry, roofing, siding & exterior finishes, interior finishes, mechanical/electrical/plumbing basics,
estimating & quantity take-offs, contract law & change orders, bonds (bid, performance, payment),
insurance (workers’ comp, general liability, builder’s risk), project management & scheduling, and ethics
& lien law.
1. A contractor bids a single-family home project at $45,000 total cost. According to NC licensing law,
this project requires:
A) No license, since it is under $50,000
B) A Residential Contractor license because the project exceeds $40,000
C) Only a Home Improvement registration
D) A Building Contractor license
Answer: B – NC requires a Residential Contractor license for any project where the total cost exceeds
$40,000 .
, Page 2 of 93
2. A sole proprietor general contractor is sued by a homeowner for faulty foundation work. Which
business structure provides the least personal liability protection?
A) Limited Liability Company
B) Corporation
C) Sole Proprietorship
D) Partnership
Answer: C – Sole proprietors have unlimited personal liability; LLCs and corporations shield personal
assets .
3. A contractor fails to pay a lumber supplier. The supplier wants to file a lien against the homeowner’s
property. Which NC statute governs mechanics’ liens?
A) Chapter 44A of the NC General Statutes
B) Chapter 143 of the NC General Statutes
C) NC Building Code
D) NC Environmental Law
, Page 3 of 93
Answer: A – Chapter 44A specifically addresses mechanics’ liens and related procedures in North
Carolina .
4. The NC Licensing Board for General Contractors requires which of the following to demonstrate
financial responsibility for an Intermediate license?
A) Current assets exceeding liabilities by at least $17,000
B) Current assets exceeding liabilities by at least $75,000
C) Net worth of at least $80,000
D) A $50,000 surety bond
Answer: B – Intermediate license requires current assets exceed liabilities by $75,000; Limited requires
$17,000 .
5. A contractor excavates a foundation on a sloped lot. Which environmental regulation governs
stormwater runoff from the site?
A) NC Building Code Chapter 11
B) Sedimentation and Erosion Control Law
, Page 4 of 93
C) NC Energy Conservation Code
D) Wetlands Protection Act
Answer: B – The Sedimentation and Erosion Control Law regulates stormwater management to
minimize runoff and pollution .
6. An employee falls from a second-story deck while installing railings. The height is 8 feet above ground.
OSHA requires fall protection at what minimum height in construction?
A) 4 feet
B) 6 feet
C) 8 feet
D) 10 feet
Answer: B – OSHA mandates fall protection for construction workers at heights over 6 feet .
7. A contractor wants to qualify for a Residential license without traditional construction supervision
experience. Which alternative is acceptable under NC rules?
A) 60 hours of home inspection training
B) A bachelor’s degree in business with 1 year of design experience
