RALEIGH, N.C. — As of October, contractors don’t need to be licensed if the project costs less than $40,000 in North Carolina. The previous threshold was $30,000, a number that hadn’t changed since the 1990s.

One Raleigh-based contractor says it’s always a good idea to hire licensed contractors but believes there could also be benefits to this change as long as people do their research.

What You Need To Know

  • As of October, contractors don’t need to be licensed if the project costs less than $40,000

  • The previous threshold was $30,000, a number that hadn’t changed since the '90s

  • One Raleigh contractor believes it’s a good idea to hire someone who is licensed but sees benefits to the change

  • The North Carolina Licensing Board for General Contractors has a free tool you can use to look up someone’s license

Home renovations and remodeling projects can be pretty expensive, and sometimes mistakes have to be fixed.

“We have an outdoor kitchen going in,” said Eddie Casanave, the owner of Distinctive Remodeling. “Some decked-on countertops, and we actually had a hole drilled in the wrong location, so we have to replace it with a new one and put it in the right spot.”

Casanave has been in the construction industry for almost four decades.

“It's something different every day, and I enjoy solving problems for homeowners to make their life better,” Casanave said.

Since the 1990s, North Carolina has required contractors to be licensed if a project was more than $30,000.

As of Oct. 1, the threshold is now $40,000.

“[The] $30,000 threshold didn't cover nearly anything. So $40,000 makes it a little better for them, but it still doesn't cover a lot,” Casanave said.

Casanave says there can be a place and purpose for unlicensed contractors doing small jobs.

“The benefit is for a guy just starting out and doesn't have a license yet, but he's in the construction business. It gives him the opportunity to build project size,” Casanave said.

Casanave says he started out with smaller projects decades ago but believes it’s a good thing to be licensed because of the vetting they go through and the protections it offers.

“Having the licensing, you have to have minimum thresholds of financial ability to cover and working capital, if you will, to make sure you can complete the jobs that you were hired for,” Casanave said.

Regardless of your budget and project size, Casanave believes it’s always important to do research before signing any contracts.

So when the inevitable mistakes do happen, you can rest assured it’ll be made right.

“There are good and bad people all over. And it doesn't matter what industry. It's a matter of doing a little due diligence and doing a little research and getting references,” Casanave said.

The Better Business Bureau serving the Eastern Carolinas says a majority of the complaints it receives are from the trades services. If you do end up using someone that is not licensed, there are other things you can do to vet that person.

“Ask for their insurance company, ask for a testimonial from a past client or customer. Make sure you’re getting three different quotes from different companies, that way you can really go through the ins and outs. Any contract you agree to, make sure you get it in writing and read that thing backwards and forwards,” said Alyssa Parker, with BBB of Eastern Carolinas.

Customers may also not qualify for certain state-based financial assistance if they have an issue with an unlicensed contractor.

The North Carolina Licensing Board for General Contractors has a free tool you can use to look up someone’s license on the organization’s website.

The Better Business Bureau also has a search tool to look for BBB Accredited Businesses on its website.