North Carolina Contractor License Exam

Two Exams, Not One

On the standard pathway, getting a North Carolina general contractor license requires passing two separate exams: a trade exam and the NC Business and Law exam. Both are administered by PSI Services at testing centers across the state, and each attempt costs $79. An applicable reciprocity agreement can waive the trade exam, but out-of-state contractors still have to take the Business and Law exam.

You can only schedule exams after the NCLBGC approves your application and sends an eligibility letter. On the standard pathway, that letter gives you 120 days to pass both exams. If you miss the window, contact the NCLBGC about the next application step.

The Trade Exam: NC State vs NASCLA

You have two options for your trade exam:

NC State Trade Exam — The Building Contractor exam has 90 questions and a 3 hour 20 minute time limit. The Residential Contractor exam is also 90 questions with 3.5 hours. Both are open-book, and you need 70% (63 correct answers) to pass. These scores are only valid in North Carolina.

NASCLA Accredited Exam — 115 questions, 5.5 hours, also open-book with a 70% passing score (81 correct answers). The NASCLA exam is longer and harder, but it's portable. If you later want to get licensed in another NASCLA-member state, you can transfer your score through the National Examination Database (NED) for $45 per state instead of retaking a trade exam.

Which should you take? If you plan to only work in North Carolina, the state exam is shorter and more focused. If you're eyeing projects in other southeastern states — several of which have reciprocity with NC — the NASCLA exam saves you from retesting later.

The NC Business and Law Exam

Every qualifier takes this one regardless of which trade exam path they choose. It's 40 questions, 90 minutes, open-book, with a 70% passing score. The content covers North Carolina contracting statutes, administrative rules, lien law, and business practices specific to the state.

This exam is where many experienced contractors stumble. They know construction inside and out but haven't studied NC-specific legal requirements — project threshold rules, licensing board authority, subcontractor obligations, and the mechanics of mechanic's liens under state law.

Open-Book Rules and What to Bring

Both exams are open-book, which means you can bring approved reference materials into the testing room. The PSI Candidate Information Bulletin (CIB) lists exactly which reference books are allowed for each exam. Typically this includes the applicable building codes, NCLBGC statutes, and specific reference manuals.

Tab your reference books before exam day. Three and a half hours sounds generous until you're flipping through 600 pages of building code trying to find one section. Contestants who pre-tab their references and practice looking up answers during study consistently finish faster and score higher.

You cannot bring personal notes, electronic devices, or any materials not listed in the CIB.

Testing Day Logistics

PSI testing centers operate across North Carolina. When scheduling:

• Check in at least 30 minutes early. Late arrivals forfeit their appointment and fee.
• Bring two forms of signature ID, at least one with a photo (driver's license or passport works). The name on your IDs must exactly match the name on your licensing application.
• Exams are computer-based. You'll get your score displayed on screen immediately after finishing.

Retake Policy

There is no mandatory state-enforced waiting period between retake attempts. If you fail, you can reschedule as soon as PSI has availability. Each retake costs another $79.

The real constraint is your 120-day eligibility window. Every retake attempt eats into that deadline. If you run out of time without passing both exams, contact the NCLBGC about the next application step.

Setting Yourself Up to Pass

The pass rates aren't published by the NCLBGC, but exam prep providers consistently report that first-time pass rates are highest among candidates who study for 2–4 weeks using the approved reference materials, practice with timed question sets, and tab their books methodically.

The North Carolina General Contractor License Guide covers the full exam logistics — scheduling, approved references, the 120-day timeline — so you can plan your study schedule around the eligibility window without losing time to administrative confusion.

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