GC Laws — North Carolina contractor-law checklist preview (free) Sources reviewed 2026-09-30. Public summaries remain free on gclaws.com. [ ] Licensing - Covered general contracting includes bidding, constructing, or undertaking covered management/supervision of buildings, highways, utilities, grading and improvements at the $40,000 threshold. - Exceptions include specified industrial equipment/monuments, qualifying owner construction for sole occupancy complying with section 87-14, and qualifying farmer construction on owned farming land. Failure of sole occupancy for 12 months creates the statutory presumption against that owner exemption. - Unauthorized contracting/bidding and use of another person’s, expired or revoked license are prohibited and subject to Class 2 misdemeanor penalties. [ ] Mechanic's liens - Qualifying owner-contract labor, design/surveying services, materials or rental equipment can support a real-property lien upon statutory compliance. - Owners designate the lien agent before first contracting for covered improvements; section 44A-11.1 supplies the $40,000 threshold and residence exceptions. - For covered projects, receipt of a Notice to Lien Agent within 15 days of first furnishing protects against later qualifying conveyances/mortgages. Later notice may protect only if received before the relevant recording, subject to perfection alternatives and statutory notice-information exceptions. It does not replace lien filing/service. - Perfect by serving the record owner and filing the claim; a subrogated claim also requires service on the contractor through whom rights are asserted. - File with the superior-court clerk in each property county within 120 days after claimant’s last site furnishing, after the obligation matures. - Commence enforcement within 180 days after claimant’s last site furnishing; preserving the statutory sale/priority rights also requires timely lis pendens in other property counties where the action was not commenced. [ ] Retainage - At 50%, further retention normally stops with surety consent, satisfactory performance and corrected nonconforming work. Section (b3) allows continued withholding up to 5% of payments to maintain 2.5% total retention. - Release follows within 60 days after pay request and the contract’s substantial-completion or beneficial-occupancy trigger, with surety consent; unfinished/correction reserves are capped at 2.5 times estimated cost. Federal-conflict exceptions apply. [ ] Prompt payment - Final payment runs from earliest acceptance, completion certification or beneficial occupancy/use. Late interest is 1% monthly or fraction, unless a lower rate is agreed; contractor-delay and conditional-acceptance withholding exceptions apply. - Prime contractors pass periodic/final payments within seven days; statutory grounds permit withholding. [ ] Prevailing wage - Covered contractors must pay laborers and mechanics at least the applicable U.S. Department of Labor prevailing wage and fringe-benefit rates for the project type and location and submit weekly certified payrolls. - The manual excludes grantee force-account employees and professional services from these construction labor provisions; it also identifies an exclusion for utility employees who only extend service to the property. [ ] Davis-Bacon (federal) - Under 40 U.S.C. section 3142, covered contracts require payment to laborers and mechanics employed directly on the site of the work at least weekly, at rates no lower than the applicable prevailing wage determination. The required compensation includes the basic hourly rate and required fringe benefits, which may be provided through qualifying benefits or cash as the statute permits. - Qualifying apprentices may receive a lower registered-program rate only when the applicable registration and program conditions are met. The Department of Labor’s apprenticeship rules govern those exceptions. - The Department of Labor determines the prevailing rates for the work classifications and locality. Contractors and subcontractors must use the wage determination applicable to their covered contract. - Federal assistance alone does not establish coverage: many, but not all, construction-assistance statutes include Davis-Bacon requirements. Identify the funding program and its governing Related Act. - SAM.gov publishes Davis-Bacon wage determinations. Search by the wage-determination number or the Davis-Bacon public-buildings-or-works category, and match the decision to the contract, locality, and work classification. This preview lists the topics and rules covered in the full state pack. The paid pack adds the complete source URLs, citations, review dates, and the three editable tools. GC Laws is owned and operated by GCExperts LLC, a Texas corporation.