North Carolina Contractors License Bond Requirements
Contractors in North Carolina must get bonded both on a state level as well as on a city level. The following types of contractors in the state must obtain a contractor license bond:
- General contractors in the state must get licensed with the North Carolina Licensing Board for General Contractors (NCLBGC). Contractors included in this category are building, residential, highway, public utilities, specialty, and unclassified contractors.
These contractors can choose to post a bond, instead of demonstrating working capital. Bonds must be in the following amounts:
- $175,000 bond for a limited license
- $500,000 bond for an intermediate license
- $1,000,000 bond for an unlimited license
- Electrical contractors must also get licensed and bonded on a state level. The State Board of Examiners of Electrical Contractors (NCBEEC) issues licenses for them and requires applicants to post a bond (called a "bonding ability statement") in one of the following amounts:
- $50,000 statement of bonding ability for an intermediate electrical contractor
- $130,000 statement of bonding ability for an unlimited electrical contractor
- Landscape contractors in North Carolina must obtain a license from the North Carolina Landscape Contractors’ Licensing Board (NCLCLB). They must post a $10,000 NC landscape contractor’s surety compliance bond.
- Irrigation contractors in the state must obtain a license from the North Carolina Irrigation Contractors’ Licensing Board (NCICLB). As part of the licensing process, they must post a $10,000 bond.
- Contractors in a number of cities among which are Winston-Salem, Greensboro, High Point, Rocky Mount, and Cabarrus County, and Rowan County must also post bonds when applying for a contractor license or permit. Make sure to contact your local licensing authority for more information about the bond requirements.
These are the bonds that are required of contractors in North Carolina. Bryant Surety Bond can help you obtain your North Carolina contractor license bond quickly and at a low rate.
To apply for your bond and get a free quote, complete the online application form and you will shortly be contacted by one of our surety professionals.
Are you looking for a North Carolina contract bond instead? See our contract bonds page to find the bond you need!
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How Much Does a North Carolina Contractors License Bond Cost?
To get a bond in North Carolina, you must pay a surety bond premium. This premium is equal to a percentage of the total bond amount. The surety that issues the bond determines the premium on the basis of an applicant’s personal credit score.
If you have a high credit score (700 FICO or more), you can expect to get bonded at a rate of as little as 1%. So if you need to get a $50,000 bond at a 1% rate, you will need to pay $500 for your bond.
Want to get a ballpark estimate of the cost of your bond, based on your credit score? See the table below!
|North Carolina Contractors License Bond Costs|
|License type||Bond Amount||Surety Bond Cost by Credit Score|
|Above 700||650-699||600-649||Below 599|
|General contractor license bonds|
|Limited general contractor||$175,000||$1,750-$3,500||$2,625-$5,250||$3,500-$7,000||$5,250-$8,750|
|Intermediate general contractor||$500,000||$5,000-$10,000||$7,500-$15,000||$10,000-$20,000||$15,000-$25,000|
|Unlimited general contractor||$1,000,000||$10,000-$20,000||$15,000-$30,000||$20,000-$40,000||$30,000-$50,000|
|Electrical contractor license bonds|
|Intermediate electrical contractor||$50,000||$500-$1,000||$750-$1,500||$1,000-$2,000||$1,500-$2,500|
|Unlimited electrical contractor||$130,000||$1,300-$2,600||$1,950-$3,900||$2,600-$5,200||$3,900-$6,500|
|Landscape and irrigation contractor license bonds|
|Landscape and irrigation contractor||$10,000||$100-$200||$150-$300||$200-$400||$300-$500|
To get a better picture of your financial stability, sureties may also take into account the following information when setting your bond rate:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
To lower your bond premium, you must primarily work on increasing your credit score. In addition, improving any of the above financial factors can also have a positive impact on your premium.
Want to know more about how sureties determine the cost of your bond? See our detailed surety bond cost guide!
All types of general contractors in North Carolina are required to post a bond under 21 NCAC 12A .0204. The bond is intended to benefit any person who is damaged by a contractor’s actions or omissions that breach a contract between the claimant and the contractor.
Licenses and bonds for general contractors expire on January 1 each year. In order to retain your license, you must renew it, along with the bond, by December 31 of the previous year.
If your license and bond expire, you renew them no later than 60 days after the expiration. After that, your license becomes invalid.
Bonds for electrical contractors in the state are required under the NC General Statutes Chapter 87. Contractors § 87-43.2.
Licenses and bonds expire one year after their issuance. In order to renew their license, electrical contractors must submit a renewal application no later than 30 days prior to the license expiration date.
Landscape contractors in the state are required to get bonded under the provisions of the NC General Statute 89D-16. The bond is conditioned upon the contractor faithfully conforming to and abiding by the provisions of Chapter 89D of the Statutes.
Licenses and bonds for landscape contractors in North Carolina must be renewed on or before August 1 of each year.
The bond required of irrigation contractors in North Carolina is required under NC General Statute 89G-6. It is conditioned upon the irrigation contractor’s compliance with the provisions of Chapter 89G. In addition, it also serves as financial protection to anyone who is harmed by a contractor as a result of a violation of the Chapter.
Licenses for irrigation contractors must be renewed annually on or before December 31. Bonds must also be renewed at that time.
North Carolina Contractor Licensing Requirements
The licensing requirements for contractors in North Carolina differ from one licensing authority to the next. To learn more about how to get one of the above North Carolina contractor licenses, see our detailed licensing guides: