If you design, specify, or recommend contractors to project owners in North Carolina, there are some simple but important legal and professional responsibilities you need to know. This blog post explains the statutes and practical steps you can take to protect your license, your reputation, and your clients.
Why This Matters?
As a licensed engineer, who you recommend to a homeowner or commercial project owner matters more than you might think. North Carolina law specifically addresses the unauthorized practice of contracting and includes language that directly affects architects and engineers who recommend contractors. Recommending an unlicensed contractor for a job that requires licensure can create legal exposure and professional discipline.
Key Statutes and Rules to Know
- C. Gen. Stat. § 87-13 — This statute deals with unauthorized contracting, impersonating a contractor, false certificates, and giving false evidence to the board. Importantly, it states that “any architect or engineer who recommends to any project owner the award of a contract to anyone not properly licensed under this article shall be deemed guilty of a Class 2 misdemeanor.”
- 21 NCAC 56 .0701 — North Carolina administrative code that governs aspects of the Board of Examiners for Engineers and Land Surveyors. While it doesn’t repeat § 87-13 verbatim, it helps frame enforcement and professional standards.
- C. Gen. Stat. § 87-21(a) — The statute governing discipline for engineers and land surveyors. Two subsections to watch:
- Subsection (1): Fraud or deceit in obtaining or renewing licensure (less likely to apply for referrals).
- Subsection (2): Gross negligence, incompetence, or misconduct in the practice of the profession — this is the most relevant if an improper referral leads to harm or a complaint.
- Subsection (6): Professional incompetence — could also be used depending on the facts.
The Practical Trigger: Licensed Contractors and The Dollar Threshold
Not every job requires a licensed general contractor. However, as of 2025, projects at or above approximately $40,000 generally require a licensed general contractor in North Carolina. That threshold is what makes many common renovations and builds fall squarely into the area where your referral could create legal exposure.
What Can Happen if You Recommend an Unlicensed Contractor?
- Potential criminal exposure: The statute labels the offense a Class 2 misdemeanor.
- Professional discipline: Even if criminal prosecution is unlikely, the North Carolina Board of Examiners for Engineers and Surveyors can investigate under theories like gross negligence, incompetence, or misconduct if a referral causes problems.
- Damage to your reputation: If a contractor you recommend performs poorly, the client will often hold you responsible for the recommendation.
Simple, Practical Steps to Protect Yourself and Your Clients
Protecting yourself is straightforward and should be part of your firm’s policies and procedures.
- Don’t refer unlicensed contractors for jobs that require a license. If the project meets the licensed-contractor threshold, only recommend licensed contractors.
- Verify licensure before recommending. Ask for the contractor’s license number and confirm it on the North Carolina licensing board’s website. Don’t rely solely on verbal assurances.
- Document the verification. Download or print the license record and keep it in the project file. Have your staff perform and record the check as part of intake procedures.
- Include verification in your firm’s policies and procedures. Make license checks a routine step and train staff to follow it.
- Limit endorsements. Instead of an explicit “recommendation,” consider providing a list of pre-vetted licensed contractors, or state that you can provide referrals but encourage owners to perform their own due diligence.
- Maintain relationships with reputable contractors. Know who you recommend, based on past performance and confirmed licensure, so you’re not surprised if a referral performs poorl.
What To Do if You’re Unsure?
- When in doubt, don’t refer. Explain to the client why you won’t recommend someone who isn’t licensed for the scope or value of the work.
- Check the licensing board record — it’s quick and authoritative.
- If you receive a complaint or foresee a dispute, document all communications and the steps you took to verify licensure.
Final Thoughts
Your reputation as a licensed professional depends on who you work with and who you recommend. The law in North Carolina makes clear that recommending unlicensed contractors for work that legally requires licensure can carry criminal and professional risks. The solution is simple: verify, document, and make license checks part of your firm’s standard operating procedures. It’s easy to implement and far easier than dealing with reputational damage or regulatory trouble later.
*Nothing in this blog establishes an attorney-client relationship. Nothing in this blog is legal advice. If you have any questions, please check out our other blogs and our YouTube channel. You can also call us at 919-521-8810 with questions.en
