Verifying a North Carolina Contractor

Crawl space work can involve several state licenses at once: general contracting, heating, electrical and pest control. Each one is issued by a different board with its own free lookup tool. Ten minutes of checking before you sign can save you a lot of trouble later.

Step 1: Know which licenses could apply

Work involved	Who licenses it	When it matters
General construction	NC Licensing Board for General Contractors (NCLBGC)	Any project valued at $40,000 or more
HVAC supply air into the crawl space	State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors	The R409.5.2 supply-air drying method needs an H-3 license, according to the board's answer reprinted by the OSFM
New circuits or outlets	NC State Board of Examiners of Electrical Contractors	Wiring for a dehumidifier, sump pump or fan
Termite treatment and WDIR reports	NCDA&CS Structural Pest Control Division	Treating for termites or issuing a Wood-Destroying Insect Information Report

The $40,000 general contractor threshold

The NCLBGC says a general contractor must hold a state license for any project valued at $40,000 or more. Many crawl space encapsulation jobs cost less than that, so a company can legally do the work without a general contractor license. That makes the other checks below more important. Board licenses come in three tiers. A Limited license covers single projects up to $750,000, Intermediate up to $1,500,000, and Unlimited has no cap. For a residential crawl space job, any tier is plenty.

Drying method and the H-3 license

The NC Residential Code allows four ways to dry a closed crawl space. An OSFM interpretation passes along the Plumbing, Heating and Fire Sprinkler board's position that only the supply-air method, which ducts conditioned air from the home's HVAC system, needs an H-3 license. A stand-alone dehumidifier does not. Ask each bidder which method they plan to use. Our closed crawl space code summary explains all four.

Step 2: Run the free lookups

• General contractors: Search by name or license number with the NCLBGC license search. Make sure the license is active and the name matches the company on your contract.
• Plumbing and heating: Use the board's public license search to find H-3 and other classifications.
• Electrical: Use the electrical board's license search.
• Business registration: The NC Secretary of State's business registration database shows whether a corporation or LLC exists and is in good standing. Sole proprietorships and general partnerships are not listed there.

Step 3: Check the permit

The OSFM has said that converting a vented crawl space to a closed one needs a permit regardless of cost. Ask who will pull it, and make sure the permit names the contractor, not you. That detail matters later. One of the Homeowners Recovery Fund's requirements is a building permit that lists the contractor as the general contractor. To find your local office, see county permit and inspection offices.

Step 4: Read the contract

The NC Department of Justice recommends a written contract that lists all the work, its cost and a completion date. For crawl space jobs, also look for:

• Liner thickness in mil and how seams, piers and walls will be sealed (see mil thickness)
• The drying method, plus the brand and capacity of any dehumidifier
• How the termite inspection gap will be kept open
• What the warranty covers and who honors it

Our blog post on comparing crawl space quotes goes line by line through a typical bid.

If something goes wrong

• Complaints about a licensed general contractor go to the NCLBGC.
• Consumer complaints can be filed with the NC Department of Justice. The department says it cannot give individual legal advice or file a lawsuit just to recover your money, so a private attorney may still be needed.
• The Homeowners Recovery Fund is a last resort run by the NCLBGC. It is for owners of single-family homes who lost money to a dishonest or incompetent licensed general contractor, or to someone who falsely claimed a license. It generally requires an unpaid court judgment against the contractor and a permit naming the contractor. It does not cover a simple breach of contract. Read the board's eligibility rules before relying on it.

Ready to compare vetted options? Browse contractors in your area, starting with Raleigh, Charlotte or Greensboro.