NASCLA Contractors Guide – North Carolina 10th Edition
(155 Questions) | Actual Exam Questions & 100% Correct
Answers | Latest Update 2026 | Licensing Exam Prep
1. If a subcontractor completes work valued at $100,000, how much retainage
can the owner legally withhold according to North Carolina regulations?
$5,000
$20,000
$15,000
$10,000
2. If a subcontractor on a public project has completed work worth $50,000 but
has only received $15,000 in payment, what amount can they legally file a
claim for?
$35,000
$15,000
$40,000
$50,000
3. If a contractor applies for an NC Intermediate license and fails to secure the
required surety bond, what consequence might they face?
They will receive a temporary license.
Their application for the license will be denied.
Their license will be granted with conditions.
They will be fined for the application.
,4. What is the maximum percentage of retainage that can be withheld from a
subcontractor in North Carolina upon completion of acceptable work?
15%
5%
20%
10%
5. Assures payments as required by law to all persons supplying labor or
material in the prosecution of the work provided for in the contract
Annual performance bond
Performance bond
Payment bond
Annual bid bond
6. What is the requirement for contractors in North Carolina when undertaking
construction projects exceeding $40,000?
No licensing is needed.
Only financial responsibility is required.
A special permit is needed.
Proper licensing is required.
7. Which is NOT required on a home improvement contract?
The name and home address of all the personnel listed on the
license
A description of the work to be done and materials and equipment to
be used or installed
, A notice, in at least 10 point print, in close proximity to the signature,
and a statement that the owner has a right to require a performance
and payment bond
An approximate date when work will begin and be substantially
completed
8. If a construction project has a total bid price of $200,000, what is the
maximum amount that licensed general contractors can charge for their work
based on the regulations?
$30,000
$50,000
$20,000
$40,000
9. Describe the implications of the subcontractor's right to payment in
residential improvement contracts in North Carolina.
The right to payment is guaranteed for all subcontractors in any
residential contract.
In residential improvement contracts for one unit or less,
subcontractors may not have the right to be paid if the contractor
has not received payment.
Subcontractors can only claim payment if the contract is for two units
or more.
Subcontractors are always entitled to payment regardless of the
contractor's payment status.
10. What is the cost of a limited license application in North Carolina?
$50
, $150
$75
$100
11. What is the renewal fee for an Intermediate contractor license in North
Carolina?
$150
$75
$100
$50
12. Describe the implications for a contractor's license when the qualifier is
disconnected from the licensee.
The license is automatically renewed for another year.
The license remains valid for a specified duration until a new
qualifier is appointed.
The license can be transferred to any other contractor.
The license is revoked immediately without any grace period.
13. If a contractor is awarded a local government contract valued at $200,000,
how much bond coverage is required?
$200,000
$50,000
$100,000
$150,000
(155 Questions) | Actual Exam Questions & 100% Correct
Answers | Latest Update 2026 | Licensing Exam Prep
1. If a subcontractor completes work valued at $100,000, how much retainage
can the owner legally withhold according to North Carolina regulations?
$5,000
$20,000
$15,000
$10,000
2. If a subcontractor on a public project has completed work worth $50,000 but
has only received $15,000 in payment, what amount can they legally file a
claim for?
$35,000
$15,000
$40,000
$50,000
3. If a contractor applies for an NC Intermediate license and fails to secure the
required surety bond, what consequence might they face?
They will receive a temporary license.
Their application for the license will be denied.
Their license will be granted with conditions.
They will be fined for the application.
,4. What is the maximum percentage of retainage that can be withheld from a
subcontractor in North Carolina upon completion of acceptable work?
15%
5%
20%
10%
5. Assures payments as required by law to all persons supplying labor or
material in the prosecution of the work provided for in the contract
Annual performance bond
Performance bond
Payment bond
Annual bid bond
6. What is the requirement for contractors in North Carolina when undertaking
construction projects exceeding $40,000?
No licensing is needed.
Only financial responsibility is required.
A special permit is needed.
Proper licensing is required.
7. Which is NOT required on a home improvement contract?
The name and home address of all the personnel listed on the
license
A description of the work to be done and materials and equipment to
be used or installed
, A notice, in at least 10 point print, in close proximity to the signature,
and a statement that the owner has a right to require a performance
and payment bond
An approximate date when work will begin and be substantially
completed
8. If a construction project has a total bid price of $200,000, what is the
maximum amount that licensed general contractors can charge for their work
based on the regulations?
$30,000
$50,000
$20,000
$40,000
9. Describe the implications of the subcontractor's right to payment in
residential improvement contracts in North Carolina.
The right to payment is guaranteed for all subcontractors in any
residential contract.
In residential improvement contracts for one unit or less,
subcontractors may not have the right to be paid if the contractor
has not received payment.
Subcontractors can only claim payment if the contract is for two units
or more.
Subcontractors are always entitled to payment regardless of the
contractor's payment status.
10. What is the cost of a limited license application in North Carolina?
$50
, $150
$75
$100
11. What is the renewal fee for an Intermediate contractor license in North
Carolina?
$150
$75
$100
$50
12. Describe the implications for a contractor's license when the qualifier is
disconnected from the licensee.
The license is automatically renewed for another year.
The license remains valid for a specified duration until a new
qualifier is appointed.
The license can be transferred to any other contractor.
The license is revoked immediately without any grace period.
13. If a contractor is awarded a local government contract valued at $200,000,
how much bond coverage is required?
$200,000
$50,000
$100,000
$150,000
