In North Carolina, general contractors are licensed at the state level, and those who don’t meet the state’s standards for financial responsibility must purchase a contractor license bond.
North Carolina’s “Little Miller Act” requires contractors to purchase both performance bonds and payment bonds in order to sign a contract for a state-funded project valued in excess of $300,000. Private project owners aren’t subject to the Little Miller Act, but they have the option to require performance and payment bonds to protect themselves and their investors if they have any. And both government and private project owners can impose a bid bond requirement on contractors competing for a construction job.
Other construction bonds that contractors in North Carolina may need include:
- Maintenance bonds
- Subdivision/site improvement bonds
- Supply bonds
- Solar decommissioning bonds
- Right of Way bonds
