North Carolina

For North Carolina, payment bond threshold is Under $300,000 ($500,000 for state contracts); bond amount is 100 percent of the contract price; claim deadline is one year from the day on which the last of the labor was performed or material was furnished by the claimant; preliminary notice required is must give written notice to the contractor within 120 days from the date on which the claimant performed the last of the labor or furnished the last of the materials for which he claims payment; statutory citation is North Carolina General Statutes, Chapter 44A, Article 2, Part 1, §§44A-25 to 44A-35, verified against its source on 2026-08-17.

Values marked our reading are our classification of what the source says — the source does not print them in those words. The quote below is the evidence for each one; judge it yourself.

What the source says

NORTH CAROLINA Amount of Bond: 100 percent of the contract price. Labor and Material Covered: All materials furnished or labor performed in the prosecution of the public work, whether or not the labor or materials enter into or become a component part of the public improvement, including gas, power, light, heat, oil, gasoline, telephone services and rental of equipment or the reasonable value of the use of equipment directly utilized in the performance of the public work. Notice Required: Any claimant who has a direct contractual relationship with any subcontractor but has no contractual relationship, express or implied, with the contractor must give written notice to the contractor within 120 days from the date on which the claimant performed the last of the labor or furnished the last of the materials for which he claims payment stating (1) the name and address of the subcontractor giving notice, (2) general description of the real property on which the labor was performed or material was furnished, (3) general description of the subcontractor’s contract, including names and addresses of the parties thereto, and (4) general description of the labor performed and material provided thereunder. This notice is required to be served by registered or certified mail, postage prepaid, in an envelope addressed to such contractor at any place where his office is regularly maintained for the transaction of business or served in any manner provided by law for the service of summons. All contractors must also provide copies of the contractor’s project statement (containing (1) the name of the project, (2) the physical address of the project, (3) the name of the contracting body, (4) the name of the contractor, (5) the name, phone number and mailing address of the agent authorized to accept service of requests for a copy of the bond, notice of public subcontract and notice of claim on payment bond, and (6) name and address of the principal place of business of the surety) to all subcontractors engaged, and subcontractors must provide copes of the contractor’s project statement to all subcontractors they engage. Subcontractors who do not provide the required notice risk losing the right to recover the full amount of their claim from the payment bond. The law requires: Contractors. Contractors must provide a copy of the payment bond within seven days of receiving a written request from a subcontractor or supplier on a public project. Contractors must also prepare a contractor’s project statement (including details about the project, owner, contractor, bond surety and the contractor’s agent designated to receive notices required by the statute) and furnish it to all of their subcontractors at the time they enter into the subcontract. First Tier Subcontractors. At the time of contracting, first tier subcontractors must provide their subcontractors/suppliers with a copy of the contractor’s project statement. Lower Tier Subcontractors/Suppliers. In order to secure the right to assert a bond claim for the full amount being claimed, subcontractors and suppliers who are second tier and lower must provide to the general contractor’s designated agent a notice of public subcontract. This notice must include details about the project, the labor or materials provided, and the parties in the contract chain. The statute does not specify when the notice must be provided, however, bond claims are limited to labor or materials provided by the subcontractor or supplier within the 75-day period before service of the notice of public subcontract. Therefore, the notice should be provided as close as possible to when labor or materials are first provided to the project. An exception exists allowing subcontractors and suppliers to assert bond claims of $20,000 or less even if they have not served notices of public subcontract. Time for Suit: At any time after the expiration of 90 days after claimant performed the last of the labor or furnished the last of the material for which he claims payment, but no such suit may be commenced after the expiration of the “longer period of one year from the day on which the last of the labor was performed or material was furnished by the claimant, or one year from the day on which final settlement was made with the contractor.” Contracts Excluded: Under $300,000 ($500,000 for state contracts), from any contractor with a contract less than $50,000. Penalty for Failure to Take Bond: Designated official who fails to require the bonds guilty of a Class 1 misdemeanor. Statutory Citation: North Carolina General Statutes, Chapter 44A, Article 2, Part 1, §§44A-25 to 44A-35.

— fullertonlaw.com, retrieved 2026-08-17

Source

• fullertonlaw.comhttps://fullertonlaw.com/50-state-summary-payment-bond-law

Last verified against source: 2026-08-17. Due for re-check by 2027-08-17. This page as Markdown · OKF bundle · full dataset as JSON.