The NASCLA Accredited Exam: One Test That Could Work in 20+ States

Most contractors get licensed in one state, learn that state's exam, and never think about it again. But the moment you consider expanding into a neighboring state — picking up overflow work across the border, chasing a commercial bid in a new market, or relocating entirely — you discover that every state has its own exam, its own study materials, and its own application fee. The National Association of State Contractors Licensing Agencies, better known as NASCLA, created the Accredited Examination Program specifically to solve this problem.

What NASCLA actually is

NASCLA is not a licensing board. It does not issue licenses, regulate contractors, or enforce building codes. It is a nonprofit association whose members are the state licensing boards themselves. Since 2006, NASCLA has maintained and administered the Commercial General Building Contractor (CGBC) examination — a standardized business-and-law test designed to be accepted across state lines.

The idea is straightforward: instead of studying for a different business-and-law exam in every state you want to work in, you pass the NASCLA exam once, and every participating state accepts the result as proof that you understand the regulatory, financial, and legal side of running a contracting business. You still have to meet every other requirement the state imposes — experience, insurance, bonding, background checks — but you skip the state-specific business exam.

How the exam works

The NASCLA Commercial General Building Contractor examination is administered by PSI Services at testing centers nationwide. The exam covers business management, project management, estimating, contract law, insurance, bonding, lien law, safety regulations, and the legal responsibilities of a general contractor. It is an open-book exam: candidates bring the NASCLA Contractors Guide to Business, Law and Project Management into the testing room.

Key exam details:

• Format: 80 scored questions, plus 10 unscored pretest items (90 questions total)
• Time limit: 4 hours (240 minutes)
• Passing score: 72%
• Fee: $395 per sitting
• Reference book: NASCLA Contractors Guide to Business, Law and Project Management (current edition required)
• Retakes: Available after a 30-day waiting period

Results are reported as pass or fail. Once you pass, NASCLA reports your score to any participating state board you designate. There is no expiration on a passing score, although individual states may impose their own time limits on how long they accept exam results as part of an open application.

Which states accept the NASCLA exam

As of early 2026, the following states and jurisdictions accept the NASCLA Accredited Examination for general contractor licensure. Acceptance means the state will waive its own business-and-law exam if you present a passing NASCLA score — but trade exams, experience documentation, bonding, and insurance requirements still apply in full.

States that accept the NASCLA exam for general contractors:

• Alabama
• Arkansas
• Arizona (commercial only)
• Colorado (conditional — check local jurisdictions)
• Connecticut
• Florida
• Georgia
• Louisiana
• Maryland
• Mississippi
• Nebraska
• Nevada
• New Mexico
• North Carolina
• North Dakota
• Oregon
• Rhode Island
• South Carolina
• Tennessee
• Utah
• Virginia
• West Virginia

That is 22 states covering a significant portion of the U.S. construction market, including several of the fastest-growing Sun Belt states.

Which major states do not accept NASCLA

The absences are just as important as the inclusions. Several of the largest construction markets in the country do not participate:

• California — Requires the CSLB Law & Business and Trade exams, administered by PSI under contract to the Contractors State License Board. No reciprocity with NASCLA.
• Texas — Does not require a state-level general contractor license (licensing is handled at the municipal level in most cities).
• New York — General contractor licensing is handled at the city and county level, with New York City requiring its own exam through the Department of Buildings.
• Illinois — No statewide general contractor license; local jurisdictions set their own rules.
• Pennsylvania — Home improvement contractor registration exists at the state level but does not use the NASCLA exam framework.

If your primary market is California, Texas, New York, or another non-participating state, the NASCLA exam offers no direct benefit for that jurisdiction. It only becomes valuable if you also intend to work in one or more of the 22 participating states.

NASCLA vs. state-specific exams: what is actually different

The NASCLA exam covers general business and law principles — the kind of knowledge that applies to running a contracting business in any state. State-specific exams, by contrast, often include questions about that state's particular lien law, licensing statute, bonding requirements, and building-code adoption schedule.

This is the key trade-off. When you pass a state-specific exam, you have demonstrated familiarity with the exact regulatory environment you will operate in. When you pass the NASCLA exam, you have demonstrated general competence across a standardized body of knowledge, but you may still need to learn the specifics of the state you are applying in.

Some states address this by requiring a supplemental state-specific module in addition to the NASCLA score. Others simply accept the NASCLA result and rely on the rest of the application process — experience verification, bond filing, insurance submission — to ensure the applicant understands local requirements.

Who benefits most from the NASCLA exam

The NASCLA exam is not for everyone. Here is when it makes clear financial and strategic sense:

Multi-state general contractors. If you already hold a license in one participating state and want to expand into two or three others, a single NASCLA passing score can replace multiple state exam fees, multiple study guides, and multiple exam-prep cycles. At $395 per sitting, the NASCLA exam pays for itself the moment it replaces a second state exam.

Contractors who relocate frequently. Military families, contractors who follow large commercial projects, and contractors who work in border regions (Virginia/North Carolina, Tennessee/Georgia, Utah/Nevada) benefit from having a portable exam result that they can present in any participating state without starting from scratch.

New contractors planning to scale. If your five-year business plan includes operating in multiple southeastern or western states, taking the NASCLA exam up front means you will not have to interrupt operations later to study for and pass a state-specific exam every time you expand.

Who should skip NASCLA: If you plan to operate exclusively in one state, especially a non-participating state, the NASCLA exam adds cost with no practical benefit. Take your state's exam, get your license, and revisit NASCLA later if your plans change.

How to use NASCLA results to get licensed faster

Passing the NASCLA exam is only one piece of the licensing puzzle. Here is a realistic sequence for a contractor using the NASCLA pathway in a participating state:

1. Verify acceptance: Check the specific state's licensing board website to confirm that the NASCLA exam is currently accepted and to review any supplemental requirements. Policies can change between legislative sessions.
2. Pass the NASCLA exam: Schedule through PSI Services, study the NASCLA Contractors Guide, and pass with a 72% or better.
3. Request score reporting: After passing, designate the target state(s) on your NASCLA score-reporting form. Scores are typically transmitted to the state board within two to four weeks.
4. Complete the state application: Submit the state's application, experience documentation, criminal background check, bond, and proof of insurance. The NASCLA score replaces the business-and-law exam, but every other requirement still applies.
5. Pass any required trade exam: Most states still require a separate trade-specific exam (structural, mechanical, or classification-specific). NASCLA only covers the business-and-law portion.

Common misconceptions

"NASCLA is a license." It is not. NASCLA is an exam. You still need a license from each individual state where you intend to work. No state allows you to operate with a NASCLA passing score alone.

"NASCLA replaces all exams." It replaces only the business-and-law exam. Trade exams, where required, are separate and state-specific.

"Every state accepts NASCLA." Only 22 states currently participate. Major markets including California and New York do not.

"A NASCLA score never expires." The score itself does not expire, but individual states may require that the exam was passed within a certain window (often two to three years) when it is submitted as part of an application. Check with the specific state board.

Is the NASCLA exam worth it?

The NASCLA Accredited Examination is one of the most underused tools available to general contractors who work across state lines. For a single $395 fee, you can eliminate the business-and-law exam requirement in more than 20 states — saving time, money, and the friction of studying for a different version of essentially the same test in every jurisdiction. It is not a universal solution, and it does not replace trade exams, experience requirements, or insurance obligations. But for contractors who think beyond a single state border, it is the closest thing the U.S. licensing system has to a portable credential.

Check our reciprocity matrix to see exactly how each state handles license transfers and exam acceptance, or browse general contractor requirements by state to compare the full licensing picture side by side.