A construction contract outlines each party’s obligations, rights, and remedies on a project. But although the language in specific contract clauses is typically negotiable, North Carolina has certain rules that govern what the agreement must include — and what is prohibited.
Keep in mind that, while North Carolina’s rules for construction contract terms are written into state law, the courts determine how strictly those laws should be interpreted — and those interpretations can change.
On this page, you’ll find resources, legal information, and answers to frequently asked questions about North Carolina’s construction contract and payment terms requirements.
North Carolina construction contract provisions
While North Carolina generally allows construction parties to set the terms of their agreement, there are some laws that regulate specific types of contract provisions. Any contract clause that contradicts the law is invalid and unenforceable.
“No lien” clauses
Contingent payment clauses
There are two types of contingent payment clauses: pay-if-paid and pay-when-paid.
Payment timing clauses
Retainage limits