Free Template

North Carolina Homeowner-Contractor Agreement

A plain-language contract template built around North Carolina law — NCLBGC license verification, lien protections, and cancellation rights.

North Carolina GS 87-1 v1.0 — March 2026

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Instructions — not part of the agreement

How to Use This Template

This template was built by jaspector.com to help North Carolina homeowners protect themselves when hiring a contractor. It covers the key provisions recommended by the NC Licensing Board for General Contractors (NCLBGC), including licensing verification, lien protections, and cancellation rights.

Before You Start

Verify the contractor's license. Use the NCLBGC license lookup at nclbgc.org to confirm the license is active, the classification matches your project (Building, Residential, Highway, or Public Utilities), and the limitation tier (Limited / Intermediate / Unlimited) covers your project value. See our North Carolina license lookup guide at jaspector.com/contractor-license-requirements/north-carolina/ for step-by-step help.
Download and print this document. Fill in all blank fields — do not leave any section empty. The NCLBGC recommends a completely filled-in contract before work begins.
Review each North Carolina callout box. These boxes highlight state-specific legal protections. Read them carefully — they explain your rights as a homeowner.
Both parties sign. You and the contractor each get a signed copy before any work starts.
Consult an attorney. This template is a starting point. For large projects or complex scopes, have a North Carolina-licensed attorney review the agreement.

Field-by-Field Guide

› Section 1 (Parties): Fill in the legal names exactly as they appear on official documents. The contractor's NCLBGC license number, classification, and limitation tier are essential.
› Section 2 (Scope): Be as specific as possible. "Kitchen remodel" is not enough — list materials, dimensions, finishes, and what is excluded.
› Section 3 (Payment): Tie every payment to a completed milestone, not a calendar date. Include a retainage percentage. Keep the down payment reasonable.
› Section 4 (Timeline): Get start and completion dates in writing. Fill in the delay penalties — these protect you if the contractor falls behind.
› Section 7 (Warranties): Fill in the warranty period. One year is common; negotiate for more on major work.
› Section 14 (Exhibits): Attach all plans, specs, and the contractor's NCLBGC license printout. Check each box for what you are including.
› Licensing threshold: A general contractor license is required for projects valued at $40,000 or more (GS 87-1). Even below this threshold, verify the contractor's qualifications.
› No statutory deposit cap: Unlike some states, North Carolina does not cap deposits by law. However, the NCLBGC recommends tying payments to work completed and retaining a percentage until the job is done. A large upfront deposit is a red flag.
› Cancellation rights: If the contract is signed at your home (a "home solicitation sale"), you have three business days to cancel under GS 25A-39.
› Mechanics' liens: Contractors and subcontractors can lien your property within 120 days of their last work (GS 44A). Request lien waivers with each payment.
› Workers' compensation: Required under GS Chapter 97 if the contractor has employees. Ask for proof.

About Jaspector

Jaspector is an AI-powered property advisory service that helps homeowners navigate construction projects, verify contractors, and resolve disputes. If a dispute arises during your project, we can help you document the issue and build a resolution strategy.

Learn more at jaspector.com — or email hi@jaspector.com to get started.

The instructions above are provided by jaspector.com as an educational resource. They are not part of the agreement, do not constitute legal advice, and do not create an attorney-client or endorsement relationship.

Before You Begin: This template helps you understand what a strong North Carolina contractor agreement looks like. It is an educational starting point provided by jaspector.com — not a finished contract, and not legal advice. North Carolina law imposes specific requirements on residential construction contracts, and local jurisdictions may add further obligations. Have this document reviewed by a North Carolina-licensed attorney before use. Use of this template does not create an attorney-client relationship, and jaspector.com assumes no liability for any outcomes arising from its use.

Parties

Homeowner (Property Owner)

Name(s)
Property Address
Mailing Address
Phone
Email

Contractor

Business Name
Business Name (Legal Entity)
NCLBGC License Number
NCLBGC License Classification
License Limitation (Limited/Intermediate/Unlimited)
Qualifying Individual Name
Workers' Compensation Policy #
Qualifying Individual
Business Address
Phone
Email
Workers' Comp Policy #
General Liability Policy #

North Carolina Requirement: Verify the contractor's license at the NCLBGC license lookup before signing. Confirm the license is active, the classification covers your project type (Building, Highway, Public Utilities, or Residential), and the license limitation (Limited up to $500,000 / Intermediate up to $1,500,000 / Unlimited) is sufficient for your project value. Under GS 87-1, a general contractor license is required for any project valued at $40,000 or more.

Scope of Work

2.1 Project Description

Describe the work in specific, measurable detail. Include materials, methods, dimensions, and reference any plans, drawings, or specifications attached as exhibits.

2.2 Work NOT Included

Explicitly list work excluded from this contract to prevent scope disputes.

2.3 Permits and Inspections

Contractor is responsible for obtaining all required building permits
Contractor is responsible for scheduling all required inspections
Permit costs are: Included in contract price / Billed separately at cost

North Carolina Note: Under GS 87-14, building permits for projects requiring a licensed general contractor must be issued only to licensed contractors. The contractor, not the homeowner, should pull permits for licensed work. If a contractor asks the homeowner to pull the permit, that may indicate the contractor is not properly licensed.

2.4 Plans and Specifications

Attached as Exhibit A (architectural / engineering plans)
Attached as Exhibit B (material specifications)
No formal plans — scope defined by Section 2.1 above

Contract Price and Payment Schedule

3.1 Total Contract Price

Total Contract Price	$
Sales Tax (if applicable)	$
Permit Fees (if separate)	$
Total Amount Due	$

3.2 Payment Schedule

North Carolina Practice: North Carolina does not impose a statutory cap on contractor deposits or down payments. However, the NCLBGC recommends that the payment schedule parallel the amount of work completed and that homeowners retain a percentage of each payment (retainage) until the entire job is completed. A down payment exceeding one-third of the total contract price is a red flag and may indicate the contractor is not adequately capitalized.

Payment	Amount	Trigger (Work Milestone)
Down Payment	$	Upon signing
Progress Payment 1	$
Progress Payment 2	$
Progress Payment 3	$
Final Payment	$	Completion and final inspection
Total	$

3.3 Payment Terms

›Payments are due within days of written invoice
›Acceptable payment methods:
›No payment shall be due for work not yet performed or materials not yet delivered to the job site
›Final payment is due only after: (a) all work is complete, (b) final inspection is passed (if applicable), and (c) Homeowner has had reasonable opportunity to inspect

Project Timeline

Estimated Start Date
Estimated Completion Date

4.1 Delays

›Contractor shall notify Homeowner in writing within 48 hours of any event that may delay the project
›Excusable delays include: weather, permit delays, material shortages, acts of God, government orders
›Non-excusable delays exceeding business days entitle Homeowner to a daily credit of $
›If the project is not substantially complete within days of the estimated completion date (excluding excusable delays), Homeowner may terminate under Section 9

Change Orders

Any changes to the scope, price, or timeline of this contract must be documented in a written Change Order signed by both parties before the changed work begins.

Each Change Order shall include:

Description of the changed work
Addition to or deduction from the contract price
Impact on the project timeline
Signature of both Homeowner and Contractor

Important: If a contractor performs extra work without a signed change order, the homeowner is not obligated to pay for it. Always get changes in writing before work begins.

No verbal agreements will modify this contract.

Materials and Workmanship

6.1 Materials

›All materials shall be new unless otherwise specified in writing
›Substitutions require prior written approval from Homeowner
›Contractor warrants that all materials comply with applicable building codes

6.2 Workmanship Standards

›All work shall be performed in a professional, workmanlike manner
›All work shall comply with applicable North Carolina building codes and local ordinances
›All work shall conform to the plans, specifications, and scope described in this contract
›Contractor shall maintain a clean and safe job site

6.3 Subcontractors

›Contractor use subcontractors (will / will not)
›If subcontractors are used, Contractor remains fully responsible for their work, licensing, and insurance

Warranties

7.1 Contractor Warranty

Contractor warrants all labor and workmanship for a period of year(s) from the date of completion. During this period, Contractor shall repair or correct, at Contractor's expense, any defects in workmanship or materials furnished by Contractor.

7.2 Manufacturer Warranties

Contractor shall provide Homeowner with all manufacturer warranties for materials and equipment installed. Contractor shall ensure installations comply with manufacturer specifications to preserve warranty coverage.

7.3 Warranty Exclusions

›Normal wear and tear
›Damage caused by Homeowner negligence or misuse
›Damage caused by third parties or acts of God
›Items specifically excluded in writing

Insurance and Bonding

8.1 Contractor Insurance Requirements

Coverage	Minimum Amount
General Liability	$
Workers' Compensation	Statutory limits (required if Contractor has employees)
Automobile Liability	$

›Contractor shall provide certificates of insurance upon request
›Homeowner shall be named as additional insured on the general liability policy

North Carolina Note: North Carolina does not require all licensed contractors to carry a surety bond. However, contractors who use a surety bond in lieu of meeting minimum financial requirements must maintain a bond ($175,000 for Limited, $500,000 for Intermediate, $1,000,000 for Unlimited license). Ask your contractor whether they carry a bond and request documentation if so.

Termination

9.1 Homeowner's Right to Terminate

›Homeowner may terminate this contract at any time by providing written notice
›Homeowner shall pay for all work satisfactorily completed and materials delivered as of the termination date
›Contractor shall provide an itemized accounting within 10 business days of termination
›Contractor shall not charge a cancellation penalty exceeding actual costs reasonably incurred

9.2 Contractor's Right to Terminate

›Homeowner fails to make a payment within days of written notice of default
›Conditions at the job site make the work unsafe or illegal to continue

North Carolina Law (GS 25A-39): If this contract was solicited and signed at the Homeowner's residence or at a location other than the Contractor's established place of business (a "home solicitation sale"), the Homeowner has the right to cancel this contract until midnight of the third business day after the day the Homeowner signs the agreement, without penalty. The Contractor must provide a notice of the right to cancel at the time of signing. Cancellation must be in writing and is effective when deposited in the U.S. mail, properly addressed and postage prepaid. If the Contractor fails to provide the required cancellation notice, the cancellation period is extended until proper notice is given.

10.

Dispute Resolution

10.1 Informal Resolution

The parties agree to attempt informal resolution of any dispute by written notice describing the issue. The other party shall respond in writing within 15 business days.

10.2 Mediation

If informal resolution fails, the parties agree to submit the dispute to non-binding mediation before a mutually agreed mediator. Mediation costs shall be shared equally.

10.3 NCLBGC Complaint

North Carolina Resource: Homeowners may file a complaint with the North Carolina Licensing Board for General Contractors (NCLBGC) regarding licensed or unlicensed contractor activity. The NCLBGC investigates complaints and can take disciplinary action against licensed contractors. Filing a complaint does not prevent the homeowner from also pursuing legal remedies. File at: nclbgc.org.

10.4 Legal Action

If mediation fails, either party may pursue legal action in the county where the property is located. The prevailing party shall be entitled to recover reasonable attorney's fees and costs.

North Carolina Courts: Small claims court handles disputes up to $10,000. District court has jurisdiction for claims up to $25,000. Superior court handles claims exceeding $25,000.

11.

Mechanics' Lien Notice

North Carolina Law (GS Chapter 44A, Article 2): North Carolina allows contractors, subcontractors, and material suppliers to place a mechanics' lien (called a "claim of lien on real property") on your property if they are not paid for work or materials. A lien must be filed within 120 days of the last furnishing of labor or materials. An action to enforce the lien must be commenced within 180 days of the last furnishing. This lien can affect your ability to sell or refinance.

11.1 Protecting Against Mechanics' Liens

›Request lien waivers from the contractor and all subcontractors with each progress payment

›Note: Under GS 44A-18(b), a blanket pre-project waiver of lien rights is void and unenforceable in North Carolina — waivers must be tied to specific payments received

›Request a final lien waiver from all parties upon final payment

›Consider requiring Contractor to provide a list of all subcontractors and material suppliers at the start of the project

11.2 Lien Agent

North Carolina Requirement (GS 44A-11.1): For new construction projects (not improvements to an existing owner-occupied single-family dwelling), the property owner must designate a lien agent — a title insurance company or agency — no later than when the building permit is issued. Subcontractors and suppliers must notify the lien agent within specified time frames to preserve their lien rights. For owner-occupied residential remodeling and repair projects, a lien agent is generally not required.

12.

ADDITIONAL NORTH CAROLINA REQUIREMENTS

12.1 Contract Requirements (NCLBGC Recommendations)

The NCLBGC recommends that home improvement contracts include:

The contractor's name, business address, phone number, and NCLBGC license number

The full name and license number of the qualifying individual

A detailed description of the work, including material specifications (color, quantity, size, model, brand)

The contract price and a payment schedule tied to work milestones

Retainage provision (percentage withheld until completion)

The approximate start and completion dates

A clause allowing withholding of payment if work slows without apparent reason

A statement of permit responsibility (contractor obtains all permits)

Proof of liability insurance and workers' compensation coverage

12.2 Licensing Threshold Notice

Under North Carolina General Statutes Chapter 87, any person or firm that constructs, superintends, or manages the construction of any building, highway, public utility, or other improvement where the cost of the undertaking is $40,000 or more must hold a valid license issued by the North Carolina Licensing Board for General Contractors.

12.3 License Classifications

North Carolina general contractor licenses are issued in four classifications:

›Building Contractor — all building construction and demolition

›Residential Contractor — residential construction only

›Highway Contractor — highway construction

›Public Utilities Contractor — water and wastewater systems

Each license also carries a limitation tier:

›Limited — projects up to $500,000

›Intermediate — projects up to $1,500,000

›Unlimited — no project value restriction

Verify that your contractor's classification and limitation match your project type and value.

13.

General Provisions

›Entire Agreement: This contract, including all exhibits and change orders, constitutes the entire agreement. No prior verbal or written representations shall be binding unless incorporated herein.
›Severability: If any provision is found unenforceable, the remaining provisions continue in full force.
›Governing Law: This contract shall be governed by the laws of the State of North Carolina.
›Notice: All notices shall be in writing and delivered to the addresses in Section 1, by personal delivery, certified mail, or email with confirmed receipt.
›Assignment: Neither party may assign this contract without prior written consent of the other party.

14.

Exhibits and Attachments

Exhibit A: Plans and Drawings
Exhibit B: Material Specifications
Exhibit C: Notice of Three-Day Right to Cancel (if home solicitation sale)
Exhibit D: Contractor's NCLBGC License Printout
Exhibit E: Certificates of Insurance
Additional: _________________________________

Signatures

By signing below, both parties acknowledge that they have read, understand, and agree to all terms of this contract.

Homeowner

Signature

Printed Name
Date

Homeowner (if jointly owned)

Signature

Printed Name
Date

Contractor

Signature

Printed Name
Title
NCLBGC License #
Date

North Carolina Pre-Signing Checklist

Before signing, confirm each item:

Verified contractor's NCLBGC license is active at nclbgc.org
License classification covers the project type (Building, Residential, etc.)
License limitation is sufficient for the project value (Limited/Intermediate/Unlimited)
Workers' compensation coverage confirmed (required if contractor has employees)
General liability insurance confirmed
Payment schedule tied to work milestones, not calendar dates
Retainage percentage included in payment schedule
Three-Day Right to Cancel notice provided (if contract signed at home)
All blank fields in this contract are filled in — no blank spaces
Received a signed copy of the complete contract before work starts
Plans, specs, and material lists are attached or described in detail

Next step

Verify your contractor's North Carolina license

Look up NCLBGC license status, classification, limitation tier, and complaint history before you sign.

North Carolina License Lookup

Before you sign

Want a second opinion on your contractor agreement?

Jaspector can review your agreement, verify your contractor's license, and flag anything that doesn't look right — before you commit.

See how Jaspector helps

This template was prepared by jaspector.com as an educational resource for North Carolina homeowners.

It is not legal advice. Consult a North Carolina-licensed attorney before executing any construction contract.

Template v1.0 — March 2026

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North Carolina Contractor Agreement FAQ

Does a home improvement contractor in North Carolina need to be licensed?

Yes. North Carolina requires general contractors performing work valued at $30,000 or more to be licensed by the North Carolina Licensing Board for General Contractors under N.C.G.S. §87-1 et seq. Separate licensing applies to electrical, plumbing, and HVAC contractors. Verify license status at the board's website before signing any contract.

Do I have a right to cancel a home improvement contract in North Carolina?

Under the FTC Cooling-Off Rule, you have 3 business days to cancel a contract signed at your home or away from the contractor's regular place of business. The contractor must provide a written Notice of Cancellation at signing. North Carolina does not have a separate state statute extending this window beyond the federal rule.

Can a subcontractor lien my North Carolina property?

Yes. North Carolina's mechanic's lien law (N.C.G.S. §44A-7 et seq.) allows contractors, subcontractors, and material suppliers to file liens against your property for unpaid work. North Carolina requires subcontractors to serve a Notice of Claim of Lien on Funds on the owner within certain timeframes. Require lien waivers with each payment to protect yourself.

What consumer protection laws apply to home improvement work in North Carolina?

North Carolina's Unfair and Deceptive Trade Practices Act (N.C.G.S. §75-1.1 et seq.) prohibits unfair methods of competition and deceptive acts in commerce. Homeowners may recover up to three times actual damages plus attorney fees for willful violations — making it one of the stronger consumer protection statutes available against bad contractors.