North Carolina Contractor Exam Study Guide

The exam is the part of the licensing process that makes experienced builders nervous. You have been framing houses or running job sites for years, but sitting in a testing center answering multiple-choice questions is a different skill entirely. The good news is that the NC contractor exams are open-book, and the format is more straightforward than most people expect once they understand the structure.

Here is what you are actually walking into, how to prepare efficiently, and what happens if you need a second attempt.

The Two Exams You Need to Pass

On the standard pathway, each qualifier must pass two separate exams: a trade-specific exam and the North Carolina Business and Law exam. An applicable reciprocity agreement can waive the trade exam, but the Business and Law exam remains required.

Trade Exam — NC State Version:

• Building Contractor: 90 questions, 3 hours 20 minutes
• Residential Contractor: 90 questions, 3 hours 30 minutes
• Passing score: 70% (63 correct answers out of 90)
• Open-book format

Trade Exam — NASCLA Accredited Alternative:

• Commercial General Building Contractor: 115 questions, 5 hours 30 minutes
• Passing score: 70% (81 correct answers out of 115)
• Open-book format
• Passing the NASCLA exam allows you to request electronic score transcripts via the NASCLA NED database (ned.nascla.org) for $45 per state, which can be used for reciprocity applications in other participating states

Business and Law Exam (required for all qualifiers):

• 40 questions, 90 minutes
• Passing score: 70% (28 correct answers out of 40)
• Open-book format
• Covers North Carolina contracting statutes, NCLBGC rules, lien laws, and business practices

What "Open-Book" Actually Means

Both exams allow you to bring approved reference materials into the testing room. This does not mean you can look up every answer during the exam — the time constraints are real, and candidates who rely too heavily on searching through books during the test typically run out of time.

The PSI Candidate Information Bulletin (CIB) lists exactly which reference books are permitted for each exam. These typically include:

• The relevant building code volumes (NC Building Code for building contractors, NC Residential Code for residential contractors)
• North Carolina General Statutes Chapter 87 (Contractors)
• NCLBGC Administrative Code (21 NCAC 12A)

You can tab and highlight these materials, but you cannot bring in personal notes, pre-written summaries, or electronic devices. The open-book format is designed so you can verify specific code sections and statutory references — not so you can walk in unprepared.

How to Study Effectively

The most efficient approach is to study the material first, then use the open-book format as a safety net for specific details you might forget under pressure.

For the trade exam:

• Focus on the code sections you will reference most frequently — structural requirements, fire safety, egress, and accessibility standards
• Tab your reference books by section so you can find specific provisions quickly
• Practice reading code tables under time pressure — many questions require interpreting tables or calculating from code formulas

For the Business and Law exam:

• Read Chapter 87 of the NC General Statutes at least twice — the exam draws heavily from it
• Understand the NCLBGC's licensing tiers, financial requirements, and CE rules
• Study lien law basics, contract requirements, and the board's disciplinary procedures
• This exam is shorter (40 questions in 90 minutes), so time pressure is less of a factor

PSI Testing Centers

PSI Services LLC administers all NCLBGC exams at testing centers throughout North Carolina. Key logistics:

• Check-in: Arrive at least 30 minutes before your scheduled appointment
• Identification: Bring two valid forms of ID with your signature, at least one with a photograph (driver's license or passport). The name on your IDs must exactly match your licensing application.
• Scheduling: Register through the PSI online portal or automated phone system after receiving your eligibility letter from the NCLBGC
• Fee: $79 per exam attempt
• Results: Computerized scores display on-screen immediately after you finish

On the standard pathway, you must schedule and pass both exams within 120 days of the date on the board's eligibility letter. This clock starts running when the board approves your application, not when you schedule the first exam.

Retake Rules

If you do not pass on your first attempt, there is no mandatory state-enforced waiting period to retake the exam. You can schedule a new attempt through PSI as soon as a testing slot is available, while your 120-day eligibility remains valid. Each subsequent attempt costs $79.

Keep the 120-day eligibility window in mind when planning retakes. If you fail your first attempt in month three of the window, you have very little time to study and reschedule before the eligibility expires.

For a complete overview of the exam within the broader licensing process, see our post on NC contractor license exam requirements. If you want the full application-to-license walkthrough — coordinating your exam timing with entity registration, financial documentation, and background checks — our North Carolina General Contractor License Guide maps it all out.

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