Changes for North Carolina General Contractor Licenses

For many years, North Carolina law has required any individual and/or company performing construction work in excess of $30,000.00 to hold a North Carolina General Contractor’s License (exceptions for certain types of projects do exist). However, a substantial change went into effect in October 2023, as this limit was increased from $30,000.00 to $40,000.00. How does this affect both contractors and homeowners?

For contractors, this is welcome news as an unlicensed contractor can now pursue projects that are greater in total cost than they were previously able to, and thus they have access to larger projects. Additionally, contractors that perform all their work under this monetary limit may choose to never get licensed, as it is not required for their standard work. As for homeowners, this can certainly be seen as detrimental in that unlicensed individuals and/or companies can now perform more expensive and expansive work. Thus, homeowners should be even more diligent in reviewing which individuals or companies they contract with, as more unlicensed contractors will be performing work that they were previously unable to without running afoul of the law.

In sum, this is a substantial change in the world of general contracting in the State of North Carolina, as it has a wide ranging impact on both contractors and homeowners. If you have any questions, the attorneys at Hannah Sheridan & Cochran, LLP can assist with licensure issues and disputes.