For decades a North Carolina general contractor license bond has been out of reach for the large majority of license candidates have not been able to obtain bonding for lack of financial statement strength and because of the onerous terms of the obligation. Part of the application process, pursuant to 21 NCAC 12A .0204, is the requirement that a candidate demonstrate positive working capital adequate to qualify for one of three classes of license, as follows:
- Limited License ~ Projects not exceeding $500,000. The contractor must demonstrate a minimum working capital of $17,000, $80,000 net worth.
- Intermediate License ~ Projects not to exceed $1,000,000. The contractor must demonstrate a minimum of $75,000 working capital shown through an audited financial statement.
- Unlimited License ~ Projects of any size. The contractor must demonstrate a minimum of $150,000 working capital shown through an audited financial statement.
The capital requirements for a “start up” G.C. are difficult to achieve for small, emerging firm. Further, the requirement that supporting financial statements be prepared only by a North Carolina licensed certified public accountant has been an additional expense which a license candidate may not have anticipated nor budgeted for. Surety company appetites change as economies grow and renewed interest in the construction sector has supported the availability of new markets. We are now pleased to offer the North Carolina contractor license bond to a much broader group of applicants.
The surety bond thresholds for limited, intermediate and unlimited license classes are $175,000, $500,000 and $1,000,000, respectively. Application for this magnitude of surety capacity isn’t exactly “freely written”, however, we will not require financial statements prepared to review nor audit standards. Learn more about the North Carolina general contractor license bond here, or contact us at (800) 373-2804 or email Underwriting@SuretyOne.com to discuss your particular surety bond need and the application materials needed in order to offer you terms. We offer same-day underwriting, quote and issue.