Yes. The NC Licensing Board will accept surety bonds in place of demonstrating the level of working capital as required. The applicant shall submit proof of a surety bond meeting the requirements of this Rule with the application form and subsequent annual license renewal forms.
An applicant may obtain a surety bond from a surety authorized to transact surety business in North Carolina pursuant to G.S. 58 Articles 7, 16, 21, or 22. The surety shall maintain a rating from A.M. Best of either Superior (A++ or A+) or Excellent (A or A-).
The cost of a surety bond can vary from 1% up to 15% of the total bond amount. The cost is dependent upon a number of factors, including the bond amount and duration, the credit history and score of the bond holder, and the number of years in business.
Read more about the required Surety Bond amounts for your license limitation here.
Other requirements state that the bond shall be continuous in form and shall be maintained in effect for as long as the applicant maintains a license to practice general contracting in North Carolina or until the applicant demonstrates the required level of working capital.
The bond shall list the State of North Carolina as “Obligee” and be for the benefit of any person who is damaged by an act or omission of the applicant constituting breach of a construction contract, breach of a contract for the furnishing of labor, materials, or professional services to construction undertaken by the applicant, or by an unlawful act or omission of the applicant in the performance of a construction contract.
Should the surety cancel the bond, the surety and the applicant both shall notify the Board within 30 days in writing. If the applicant fails to provide written proof of financial responsibility in compliance with this Rule within 30 days of the bond’s cancellation, then the applicant’s license shall be suspended until written proof of compliance is provided.
Once your application has been approved, it’s time to focus on preparing properly for your exam to set yourself up for success. This includes purchasing the correct books for your specific exam, appropriately tabbing and highlighting the books allowed in your exam, and studying the correct information for the books not allowed in your exam.
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