HIRE

The NC General Contractor License: What It Covers for Site Work

A bare red-clay North Carolina building lot marked with survey stakes and pink flagging, a compact excavator parked at its edge and a pickup truck in the foreground with a hard hat and rolled plans on the hood.

A contractor tells you he’s licensed. Another says grading doesn’t need a license at all. A third says it depends on the size of the job, and doesn’t give you the number.

All three can be right. Here’s the number, and what sits behind it. We’re a directory of site-work contractors checked against public records. We don’t do the work, and we don’t issue or enforce licenses. This page is the license as it bears on grading, clearing and excavation, read from the state’s own statutes, rules and board pages. To look a specific contractor up, go to our license lookup walkthrough.

When the State Says a Contractor Needs a License

Under North Carolina’s general contractor law, anyone who bids on, builds or manages a project for a fee is a “general contractor” once the project’s cost reaches $40,000 (G.S. 87-1). The statute lists what counts: “any building, highway, public utilities, grading or any improvement or structure.” Grading is named outright. The licensing board puts it in plain words: if a project is valued at $40,000 or more, your general contractor must hold a license issued by the state.

Three details matter:

The exceptions are about buildings

The statute lists three exceptions (G.S. 87-1(b)): furnishing or erecting industrial equipment, power plant equipment, radial brick chimneys and monuments; an owner building on land they own, intended solely for their own family’s or firm’s occupancy; and a farmer building on land used in farming for the farmer’s own use.

Read the owner exception closely. It covers an owner who “constructs or alters a building” for their own occupancy. If the building isn’t occupied that way for at least 12 months after it’s finished, the law presumes the owner didn’t intend it that way. And it comes with paperwork: an owner claiming it to get a permit has to sign a sworn statement that they will personally run the construction and, unless an architect drew and sealed the plans, be present for the required inspections (G.S. 87-14).

Do you need a food permit to cook dinner for your own family? No. What if you start cooking for paying strangers? Then different rules apply. The owner exception works the same way: it is for your own building and your own use. It is not a way for a hired contractor to skip the license.

Which License Covers Site Work

The board’s rules (21 NCAC 12A .0202) put every general contractor into one of five classes: Building, Residential, Highway, Public Utilities and Specialty. A license can carry more than one class.

A friend says “I have a driver’s license.” Can you tell from that alone whether they can drive a school bus? You can’t. A license names what it covers, and the class is the part that tells you. For site work, the rule text reads like this:

Which class describes the job?

Read the job, guess the class, then tap to check it against the rule.

1 A crew that only digs, fills, trenches, clears and grubs. No buildings.

Specialty, H(Grading and Excavating). The rule describes cut, fill, excavation, grade, trench, backfill, clearing and grubbing, and erosion control.

Ask first: Ask which classes are on the license record. A license can hold more than one.

2 Grading the lot for a new house built to the residential code.

Residential covers site work ancillary to the homes it builds. Building and Highway also list grading in their rules.

Ask first: Ask which class the contractor holds and whether it matches your job.

3 Running a new sewer line from the street to the house.

Public Utilities. Its rule lists water and sewer mains, service lines, and house and building sewer lines.

Ask first: A septic system is not this. It has its own certificate, covered below.

4 Grading and paving the parking lot beside a new commercial building.

Building. Its rule names site work, grading and paving of parking lots, driveways, sidewalks and gutters.

Ask first: Check the limit on the license too, covered next.

We can’t tell you which single class your project needs. The rules overlap on purpose, and two contractors can hold different classes for the same work. What we can say is what to check: the class on the record should be one the rule ties to your kind of job.

How Big a Job the License Allows

Every license also carries a limit on the value of a single project (G.S. 87-10). The statute sets three:

For these limits the statute says the value excludes “the cost of land and any ancillary costs to improve the land.”

Papercraft stack of three license limits: Unlimited at the top, Intermediate up to $1.5M in the middle, Limited up to $750,000 at the bottom, with five hanging tags for the license classes: Building, Residential, Highway, Public Utilities and Specialty.
Two separate fields on a license: the class says what kind of work, the limit says how large a single project.

A pilot licensed for small propeller planes can fly. Would you board a jumbo jet with that pilot at the controls? Almost no one would. On a larger commercial or subdivision job especially, the limit is worth reading before you sign.

One more thing sits behind every license: a qualifying party who passed the board’s exam (G.S. 87-10). If that person leaves the company, the license stays valid for 90 days, during which the company can’t bid or take new contracts. After that, it is invalid until reinstated. A license also expires on January 1 and becomes invalid 60 days later unless it’s renewed.

Who Checks the License, and Who Else Needs a Credential

The permit office is one place the license gets checked. When someone applies for a permit for a building, highway, sewer, grading or other project costing $40,000 or more, the permit authority must see proof that the person running the job is licensed or exempt, and proof of the workers’ compensation insurance state law requires. State law says the office may not issue the permit until it has them (G.S. 87-14).

The general contractor license doesn’t cover every trade on a lot. Some work belongs to another board, and a license from the right board counts for that work (G.S. 87-12).

Who do you call?

Guess whose credential the job needs, then tap to check.

1 You need a new septic system installed.

A certified on-site wastewater contractor. State law requires that certification to install a permitted system, with a few exceptions, such as a licensed general contractor installing it as part of a building it is constructing.

Ask first: Ask for the certification and check it.

2 You need a well drilled.

A certified well contractor. If the person you hire isn't one, they must name the certified contractor, the certification number and the company in writing first.

Ask first: Ask for that written disclosure before any work starts.

3 A new circuit to a barn and a water pump.

A licensed electrical contractor, licensed by the State Board of Examiners of Electrical Contractors.

Ask first: A general contractor's site-work class is not an electrical license.

4 Regrading the yard and clearing some trees on a $20,000 job.

The state general contractor license isn't required below $40,000. Permits can still apply.

Ask first: The licensing board advises asking your local permitting office whether permits are required.

Septic work has its own page: see who does septic work. Below $40,000, a license isn’t what protects you. Ask about insurance with our certificate of insurance checklist, and read the red flags page before you sign anything.

When a Contractor Works Without One

Contracting for or bidding on a covered project without complying with the licensing law is a Class 2 misdemeanor (G.S. 87-13). So is using an expired or revoked certificate, or falsely claiming that someone is licensed. The board can also go to superior court for an injunction against a violation, and the court awards the board its attorney’s fees, up to $5,000, plus costs, when the board prevails (G.S. 87-13.1).

A cutaway illustration of one North Carolina lot: an excavator grading the surface, a house frame with a utility line running to it, a septic tank set into a pit beside a drain-field trench, and a well-drilling rig, each marked with its own flag to show separate kinds of work.
One lot, several credentials. Grading, building, septic and wells each answer to a different rule. (Illustration.)

Filing a complaint

The licensing board says a complaint may be eligible if the contractor is licensed, or if the contractor is unlicensed and the contract is $40,000 or more. What happens next depends on which it is.

What happens to a complaint

1. Write it down and save the record -- Keep the contract, the messages and the payments, and save a screenshot of the contractor's license record. This is our advice, not a board rule. 2. File with the board -- Use the complaint form at nclbgc.org. The board takes complaints about licensed contractors, and about unlicensed ones when the contract is $40,000 or more. 3. The board investigates -- For unlicensed practice, staff investigate, then a review committee decides whether there's probable cause. For a licensed contractor, the charges are in writing and sworn, and the board hears them unless it dismisses them as unfounded or trivial. 4. The outcome -- For an unlicensed contractor, the board either seeks an injunction in court or dismisses the complaint and tells you. For a licensed one, the board can reprimand, restrict, suspend, revoke, or refuse to renew the license.

  1. Write it down and save the record

    Keep the contract, the messages and the payments, and save a screenshot of the contractor's license record. This is our advice, not a board rule.

  2. File with the board

    Use the complaint form at nclbgc.org. The board takes complaints about licensed contractors, and about unlicensed ones when the contract is $40,000 or more.

  3. The board investigates

    For unlicensed practice, staff investigate, then a review committee decides whether there's probable cause. For a licensed contractor, the charges are in writing and sworn, and the board hears them unless it dismisses them as unfounded or trivial.

  4. The outcome

    For an unlicensed contractor, the board either seeks an injunction in court or dismisses the complaint and tells you. For a licensed one, the board can reprimand, restrict, suspend, revoke, or refuse to renew the license.

Based on G.S. 87-11 and 21 NCAC 12A .0702, and the complaint page at nclbgc.org.

NC Grade and Haul ncgradehaul.com

The board says it has no authority to make a contractor fix the work or pay you back, and no authority to impose civil fines; to recover money, you would go through the courts. We won’t guess at how a court treats a contract with an unlicensed contractor. For money, a lawyer is the right call. The board runs a Homeowners Recovery Fund, which it calls a last resort. It is tied to losses in constructing or altering a single-family home caused by a licensed general contractor, or by someone who got a building permit by posing as one, and a claimant must first sue the contractor and hold a judgment that remains unpaid. A claim has to be filed within one year of the end of the civil case, including appeals. We can’t tell you whether yard work would count, so read the board’s recovery fund page.

If you find the problem mid-job, put your questions to the contractor in writing, talk to a lawyer before you hold back a payment, and bring the record to the county permit office if a permit was pulled. For the longer playbook, see holding your builder accountable.

Does your site-work job need a license? At $40,000 or more, North Carolina requires a general contractor license, and grading is named in the statute. Check the class on the record. Septic installers and well drillers need their own certification.
The license question on one card. Save it or pin it.

What to Do Next

Get the contractor’s license number in writing, then look it up yourself. Our license lookup walkthrough shows what the record tells you. Our hire guide covers the rest of the checking, and the grading contractor guide is the one to read before comparing quotes. When you’re ready to compare, see the excavation contractors we’ve checked against public records. For what the work itself involves, read about excavation.