Licensing Exam
How the Contractor License Exam Actually Works
Most states that require a general contractor license also require passing an exam first. Here's how the exam system actually works — the vendors, the format, and the NASCLA pathway some states accept as an alternative.
35
States Using PSI
States where PSI Services administers contractor/trade licensing exams
2
Common Exam Split
Trade exam + Business & Law exam, in states that require both
18
NASCLA States/Territories
Administer or accept the NASCLA Accredited exam as of our research
The Format
Trade Exam vs. Business & Law Exam
Where a state requires a licensing exam, it commonly splits into two parts that test very different things:
- Trade exam — tests technical knowledge specific to your trade (framing, electrical code, plumbing systems, roofing methods, and so on, depending on your classification).
- Business and Law exam — tests contracts, liens, licensing law, insurance and bonding requirements, and general business practices. California's CSLB, for example, requires both a Law and Business exam and a Trade exam for most classifications, waiving the trade portion only for a narrow specialty class.
Exams are typically computer-based, delivered at physical testing centers or via remote online proctoring. PSI Services — one of the largest licensing-exam administrators, used by 35 states for contractor and trade exams including Texas TDLR, Maryland DLLR, Georgia RECAB, Idaho DOI, Washington OIC, and California DCA — explicitly supports secure open-book testing for some exam types, meaning reference materials are allowed in certain states. Whether your specific exam is open-book or closed-book depends entirely on your state and classification — confirm with your board before test day.
Reciprocity Pathway
The NASCLA Accredited Exam
NASCLA (the National Association of State Contractors Licensing Agencies) accredits the NASCLA Accredited Commercial General Building Contractor Examination, administered in partnership with PSI. Passing it is not a license by itself — you still apply separately to a state board. The application fee is $65, the passing result is valid for 1 year with up to 3 attempts, and sending your transcript to a state board costs $45 per state.
NASCLA distinguishes states that administer the exam from states that merely accept it as a substitute for their own trade test — it is not uniform reciprocity, and how much weight it carries varies by state. Virginia, for instance, treats it more as an accepted study/exam option than a formal blanket reciprocity deal, even though it appears on NASCLA's participating list.
States/Territories Administering or Accepting the NASCLA Exam
Source: NASCLA's participating-state-agencies list, cross-checked against North Carolina's own licensing board site. Always confirm current participation directly with the destination state — this list can change.
Before Test Day
How to Prepare, Realistically
Confirm the Format First
Find out from your state board whether your exam is open-book or closed-book, how many questions, and the passing score, before you plan your study time.
Know Which Exam(s) You Need
Trade exam, business-and-law exam, or both — this depends on your classification, not just your state. Check before you register.
Check Reciprocity First
If you're already licensed elsewhere, check whether the NASCLA exam or a direct state agreement could apply before assuming you need to start from zero.
Exam vendors, formats, and NASCLA participation change — always confirm current details directly with your state's licensing board or the exam vendor before registering.
Not sure which exam applies to you? Ask us for free or look up your state's specific page.
Don't Guess on a Threshold Number
Send us your trade, your state, and roughly what the job is worth — we'll tell you whether you're actually required to hold a license before you bid it.