(a) For the purpose of this Article any person or firm or corporation who for a fixed price, commission, fee, or wage, undertakes to bid upon or to construct or who undertakes to superintend or manage, on his own behalf or for any person, firm, or corporation that is not licensed as a general contractor pursuant to this Article, the construction of any building, highway, public utilities, grading or any improvement or structure where the cost of the undertaking is forty thousand dollars ($40,000) or more, or undertakes to erect a North Carolina labeled manufactured modular building meeting the North Carolina State Building Code, shall be deemed to be a "general contractor" engaged in the business of general contracting in the State of North Carolina.
(b) This section shall not apply to the following:
(1) Persons, firms, or corporations furnishing or erecting industrial equipment, power plan equipment, radial brick chimneys, and monuments.
(2) Any person, firm, or corporation who constructs or alters a building on land owned by that person, firm, or corporation provided (i) the building is intended solely for occupancy by that person and his family, firm, or corporation after completion; and (ii) the person, firm, or corporation complies with G.S. 87-14. If the building is not occupied solely by the person and his family, firm, or corporation for at least 12 months following completion, it shall be presumed that the person, firm, or corporation did not intend the building solely for occupancy by that person and his family, firm, or corporation.
(3) Any person engaged in the business of farming who constructs or alters a building on land owned by that person and used in the business of farming, when the building is intended for use by that person after completion. (1925, c. 318, s. 1; 1931, c. 62, s. 1; 1937, c. 429, s. 1; 1949, c. 936; 1953, c. 810; 1971, c. 246, s. 1; 1975, c. 279, s. 1; 1981, c. 783, s. 1; 1989, c. 109, s. 1; c. 653, s. 1; 1991 (Reg. Sess., 1992), c. 840, s. 1; 2011-376, s. 1; 2023-108, s. 2(a).)
Notes of Decisions
Spivey & Self, Inc. v. Highview Farms, Inc., 431 S.E.2d 535 (N.C. Ct. App. 1993).
· cites it 30× “The issues presented are whether (I) plaintiff is required by N.C.G.S. § 87-1 to be licensed as a general contractor; (II) plaintiff’s substantial performance under the contract should have been submitted to the jury; (III) plaintiff misled defendants as to plaintiff’s authority…”
Roberts v. Heffner, 277 S.E.2d 446 (N.C. Ct. App. 1981).
· cites it 13× “Thus, it would not reach a determination of the full amount the defendants are entitled to recover on their counterclaims if they are not barred from recovery by N.C. Gen. Stat. § 87-1 . If defendants are correct on their legal position and prevail on appeal from the final…”
Baker Const. Co., Inc. v. Phillips, 426 S.E.2d 679 (N.C. 1993).
· cites it 21× “The Court of Appeals affirmed, holding that in order to recover on its contract with defendants, plaintiff was required by N.C.G.S. § 87-1 “to have a general contractor[’]s license with both a public utilities classification and a highway contracting classification.”
Petty v. Owen, 537 S.E.2d 216 (N.C. Ct. App. 2000).
· cites it 20× “1 : The Building Code Council may also adopt rules to insure that any person that is not licensed, in accordance with G.S. 87-1, and that undertakes to erect a North Carolina labeled manufactured modular building, meets the manufacturer’s installation instructions and applicable…”
Signature Dev., LLC v. Sandler Com. at Union, L.L.C., 701 S.E.2d 300 (N.C. Ct. App. 2010).
· cites it 14× “Sandler alleged that Signature’s complaint, with the attached Agreement, revealed that Signature was a “general contractor” under N.C. Gen. Stat. § 87-1 , that the trial court “may take judicial notice that Signature is not a licensed general contractor,” and that under North…”
Mill-Power Supply Co. v. CVM Assocs., 355 S.E.2d 245 (N.C. Ct. App. 1987).
· cites it 10× “that is not licensed as a general contractor pursuant to this Article, the construction of any building . . . improvement or structure where the cost of the undertaking is thirty thousand dollars ($30,000) or more, shall be deemed to be a ‘general contractor’ engaged in the…”
Helms v. Dawkins, 232 S.E.2d 710 (N.C. Ct. App. 1977).
· cites it 6× “It is well settled in North Carolina that a general contractor within the meaning of G.S. 87-1 who has no license or who constructs a project the value of which exceeds the amount of his license may not recover for the owner’s breach of the contract, or for the value of the work…”
C.C. Walker Grading & Hauling, Inc. v. S.R.F. Mgmt. Corp., 316 S.E.2d 298 (N.C. 1984).
· cites it 5× “1983) defines a “general contractor” as: For the purpose of this Article any person or firm or corporation who for a fixed price, commission, fee or wage, undertakes to bid upon or to construct or who undertakes to superintend or manage, on his own behalf or for any person, firm…”
Sample v. Morgan, 319 S.E.2d 607 (N.C. 1984).
· cites it 6× “That pursuant to N.C.G.S. § 87-1, et seq., the plaintiff is not entitled to recover any sums of money from the defendants in that the plaintiff was not properly licensed to construct a project as alleged in the complaint in that plaintiff was licensed as a general contractor…”
Allen v. Roberts Const. Co., Inc., 532 S.E.2d 534 (N.C. Ct. App. 2000).
· cites it 5× “See N.C.G.S. § 87-1 (1999). Accordingly, the trial court properly denied Defendants’ motion for directed verdict on the issue of Bryant Roberts’ negligence.”
Ron Medlin Constr. v. Harris, 658 S.E.2d 6 (N.C. Ct. App. 2008).
· cites it 6× “N.C. Gen. Stat. § 87-1 (2001). Section 87-13 provides, inter alia, that a person or firm who contracts for or bids on a project enumerated in section 87-1 and does not hold a valid North Carolina contractor’s license is guilty of a class 2 misdemeanor.”
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