North Carolina NCLBGC Business and Law Exam Guide: G.S. 87, 22C, 44A and the NASCLA 10th Edition

North Carolina NCLBGC Business and Law Exam at a Glance

• Questions: 40 scored, plus five to ten unscored experimental items.
• Time: 90 minutes. The tutorial of up to 15 minutes does not count.
• Passing score: 70%.
• Fee: $79 per exam, paid to PSI.
• Format: open book, on a computer, at a PSI test center.
• Reference: the NASCLA Contractor's Guide to Business, Law and Project Management, North Carolina General Contractors Edition, 10th Edition.
• Eligibility: 120 days from your Board letter, for one exam.

All of these facts come from the PSI North Carolina Candidate Information Bulletin, updated November 19, 2025. Our mock exam uses the same length and time, but it is an unofficial practice set, not a copy of the real exam.

What the NCLBGC Business and Law Exam Covers

PSI publishes this content outline for the exam:

• Licensing: 21 items.
• Liens and Bonds: 8 items.
• One Call: 5 items.
• Erosion and Sedimentation Control: 3 items.
• Subcontractor's Pay Requirements: 3 items.

Licensing makes up more than half the test. The other four areas together are 19 questions, and each one comes from a short North Carolina statute. Those statutes are easy to learn and most prep books skip their exact numbers, which is why we wrote questions straight from them. The bulletin's reference list also names the North Carolina Excavation Safety Guidelines, 15A NCAC 4 and the Sedimentation Pollution Control Act (G.S. 113A, Article 4). It also says the exam may include questions on general trade knowledge.

One bulletin rule settles a lot of arguments: if two sources conflict, a law or code beats any other reference, and a state law beats a national one. So if the NASCLA book gives a general rule and a North Carolina statute differs, choose the North Carolina answer.

Open Book Rules: What You Can Bring and How to Tab It

The exam is open book, but the rules are strict:

• Bring your own copy of the reference. PSI does not provide one.
• You may highlight, underline and index it before the exam.
• Use permanent tabs only. Post-it flags and removable tabs are not allowed, and you may not write on tabs.
• Do not write in the book before or during the exam. If you are caught, the book is taken and you are reported.
• Loose or attached extra papers are removed and taken.
• Only silent, non-printing, non-programmable calculators are allowed. You can ask for a magnifying glass.

The NASCLA store's North Carolina edition comes with pre-printed permanent tab sheets. NASCLA says to put them in at least a day before the test so they stick, and the proctor decides whether to accept them.

NCLBGC Licensing Rules Under G.S. 87, Article 1

These are the licensing facts from G.S. Chapter 87, Article 1 that come up most:

• Threshold: you need a license when the cost of the work is $40,000 or more. Erecting a North Carolina labeled modular building needs one at any cost (§87-1).
• License limits: a limited license covers single projects up to $750,000, an intermediate license up to $1,500,000, and an unlimited license has no limit. Land costs are excluded (§87-10).
• Applicants must be at least 18 and show financial responsibility. Application and exam fees cannot be refunded (§87-10).
• Losing the qualifier: the license stays valid for 90 days (§87-10).
• Renewal: licenses expire on January 1 and become invalid 60 days later if not renewed. The late fee is $10 a month. After four years invalid, you cannot simply renew (§87-10).
• Continuing education: qualifiers need 8 hours each year, including a 2-hour mandatory course, by November 30. There is a 90-day grace period, and up to four elective hours can carry forward (§87-10.2).
• The Board: nine members, appointed by the Governor for five-year terms. Five members make a quorum (§87-2 to 87-6).
• Penalties: contracting without a license is a Class 2 misdemeanor (§87-13). In a disciplinary case, the Board can recover up to $5,000 in investigation and prosecution costs (§87-11).
• Permits: building permit applicants must show a license or sign a verified owner affidavit (§87-14).

One Call: The Underground Utility Safety and Damage Prevention Act (G.S. 87, Article 8A)

The old One Call law (§87-100 to 87-114) was repealed in 2014. The current law is G.S. 87, Article 8A, last amended in 2025. These are the numbers to know:

• Notice: at least three full working days before digging. Near subaqueous facilities, 10 to 20 full working days. Working days do not include weekends or State holidays (§87-122).
• A notice expires 28 calendar days after the work start date. One notice can cover a single parcel, or up to five adjoining parcels within a quarter mile (§87-122).
• Premark the dig area in white when it cannot be clearly described. Before you dig, confirm on the positive response system that every operator has responded (§87-122).
• Tolerance zone: half the known diameter plus 24 inches on each side. If the diameter is not marked, 24 inches from the edge of the mark. For subaqueous facilities, 15 feet (§87-117).
• Near pipelines, gas transmission lines and electric transmission lines, use only nonmechanized equipment within 24 inches unless the operator consents in writing and has someone on site (§87-122).
• Operators mark using the APWA color code. Facilities wider than 4 inches get their size shown every 50 feet, and the operator's name every 200 feet (§87-121).
• If you damage a line, tell the Notification Center and the operator right away, and do not backfill until the operator says so. If gas escapes or there is danger, call 911 too (§87-126).
• Penalties: up to $2,500 per violation, set by the 15-member Underground Damage Prevention Review Board. Falsely claiming an emergency is a Class 3 misdemeanor (§87-125, 87-129).

Subcontractor's Pay Requirements Under G.S. Chapter 22C

Chapter 22C is short, and it supplies three exam questions:

• Pay-if-paid clauses are unenforceable. The owner paying the contractor is not a condition for the contractor paying the sub (§22C-2).
• Pay subs within seven days of receiving each progress or final payment (§22C-3).
• Late payments earn interest of 1% per month, starting on the eighth day (§22C-5).
• Contractors may withhold payment for listed reasons, such as defective work, disputed work or poor progress. Retainage cannot be more than the percentage the owner holds back (§22C-4).
• The chapter does not apply to residential contractors or to residential projects of 12 or fewer units (§22C-6).

Liens and Bonds: Public Bonds Under G.S. 44A, Article 3

For public work, G.S. 44A, Article 3 sets the bond rules:

• When bonds are required: if the total contracts for one project are more than $300,000, every contractor with a contract over $50,000 must post both a performance bond and a payment bond. For State agencies and UNC, the project threshold is $500,000 (§44A-26).
• Each bond must equal 100% of the contract. The performance bond protects only the public owner, and the payment bond protects the people who supply labor and materials (§44A-26).
• Claims: a claimant who has not been paid 90 days after its last work can sue on the bond. A lower-tier claimant with no contract with the prime contractor must give written notice within 120 days. Suits must be filed within one year (§44A-27, 44A-28).
• A contractor must send a copy of the bond within seven days of a written request (§44A-27).

Private-project mechanics' liens fall under Article 2 of Chapter 44A, and the NASCLA North Carolina edition covers them. Our bank does not test Article 2 yet.

Fees, Retakes and Scheduling

PSI charges $79 for each exam, first try or retake. The fee cannot be refunded or transferred, and it is only good while your eligibility lasts. To cancel without losing the fee, cancel at least two days before your exam on the PSI website or by phone. Voicemail and email do not count. If you arrive late, miss the exam or bring the wrong ID, you lose the fee.

If you fail, you get 30 minutes at the end of the exam to review the items you missed. The Board then emails your score and a revised authorization within three working days. You may retake as many times as you like within 12 months while your application information is still valid. The Board's contractor FAQ says it accepts the NASCLA Accredited Examination for the Building classification. That is a trade exam, so you still need Business and Law.

How North Carolina Differs From Other States

North Carolina sets its license limits by the size of a single project, not by trade. It also tests One Call and erosion control on the law exam, which most states do not. South Carolina's business and law exam is a separate PSI test with its own rules. See our South Carolina guide if you are licensing in both states.

A Two-Week Study Plan for the NC Business and Law Exam

1. Days 1–3: Read the licensing chapter of the NASCLA North Carolina edition along with G.S. 87, Article 1. Take the practice test in Learn mode.
2. Days 4–5: Learn the One Call, 22C and 44A numbers above until you can recite them.
3. Days 6–8: Put the permanent tabs in by topic: licensing, liens and bonds, subcontractor pay, One Call and erosion control.
4. Days 9–12: Take timed 40-question mocks, spending about two minutes a question, and look up only what you miss.
5. Days 13–14: Go over your weak areas and re-check your tabs. Bring a valid photo ID that matches your registration name.

North Carolina Business and Law Exam FAQ

Frequently Asked Questions

How many questions are on the North Carolina Business and Law exam?

40 scored questions in 90 minutes, according to the PSI candidate bulletin updated November 19, 2025. PSI may also add five to ten unscored experimental questions, and the time for those does not count against you.

What score do I need to pass?

At least 70%. You get your score on screen as soon as you finish. If you fail, you also get a diagnostic report showing your weak areas.

Is the NC Business and Law exam open book?

Yes. The bulletin says "This examination is OPEN BOOK." The allowed reference is the NASCLA Contractor's Guide to Business, Law and Project Management, North Carolina General Contractors Edition, 10th Edition. You bring your own copy.

How much does the exam cost?

PSI charges $79 for each exam, whether it is your first try or a retake. Registration fees cannot be refunded or transferred. The Board's own fees are separate. Under G.S. 87-10, the application fee for an unlimited license is capped at $125.

How many times can I retake it?

The bulletin says you may retake an exam as many times as you choose in a 12-month period, as long as the information in your license application is still valid. Each attempt costs the $79 fee. Under G.S. 87-10, the Board may require a new application from a qualifier who asks to test a third or later time.

How long is my eligibility letter good for?

120 days from the date on the letter, for one exam. If you miss your appointment, it counts as an attempt.

What tabs and notes can I put in my book?

You may highlight, underline and index before the exam, using permanent tabs only. Post-it flags and other removable tabs are not allowed. You may not write in the book or on tabs, and loose papers will be taken away.

What topics are on the exam?

Licensing (21 items), Liens and Bonds (8), One Call (5), Erosion and Sedimentation Control (3) and Subcontractor's Pay Requirements (3). That outline is from the PSI bulletin.

Can I take the NASCLA exam instead?

For the Building classification, the Board accepts the NASCLA Accredited Examination, according to its FAQ. You take that exam through NASCLA before applying. It replaces the trade exam, not the North Carolina Business and Law exam.

How hard is it?

It is open book, but 90 minutes for 40 questions is only about two minutes each. Most people who struggle run out of time looking things up. Know the numbers on this page by heart, tab the book well, and save lookups for questions you cannot answer.

Some topics are not covered by our question bank: erosion control (15A NCAC 4 and G.S. 113A), Chapter 44A Article 2 liens, and the content of the NASCLA book. Every question we do have cites the statute section or the bulletin. The exam may include items we cannot preview, so confirm the details with the Board before you test.