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Comparisons

The trade exam and the business and law exam

Compiled by the Sitonce editorial team from the PSI Candidate Information Bulletin, NASCLA's own published material and the federal standards named belowUpdated 2 min readFacts verified 4 September 2026
The short answer

The NASCLA exam is a trade examination on construction practice, safety and contracting. A state business and law exam covers that state's licensing law, business practice and regulations. Most participating states require both.

The single most common surprise for candidates who thought they had finished.

What each covers

NASCLA trade examState business and law exam
ScopeConstruction practice, safety, contractingThat state's licensing law and business rules
Applies in17 states plus the USVIOne state
FormatOpen book, 125 questions, 330 minutesVaries by state
OverlapSome general business contentState-specific, largely not covered by NASCLA

Why there is overlap but not enough

The NASCLA exam does contain business material - contracts, bonds, liens, estimating, employment law. That is 31 questions of it.

But it is general. A state business and law exam asks about that state's licensing statute, its lien deadlines, its regulations and its board procedures, none of which the NASCLA exam covers. Two exams, not one.

Passing one does not satisfy the other

They are separate requirements. Candidates finish the NASCLA exam, request their transcript, and discover a second examination standing between them and the license.

Which to sit first

Usually the NASCLA exam, because the general contracting material makes the state-specific version easier to absorb afterwards.

Check whether your state imposes an order or a time limit between them.

Preparing for the state exam

From the state's own published materials. Its statute, its board rules and whatever candidate handbook it issues.

National prep material is not much use for a state-specific paper, which is the whole point of it being state-specific.

Common questions

What is the difference between the NASCLA exam and a business and law exam?

The NASCLA exam is a trade examination accepted in seventeen states. A business and law exam covers one state's licensing law and business rules.

Does passing NASCLA cover business and law?

No. They are separate requirements and most participating states require both.

Is there overlap?

Some general contracting material, but the state exam covers that state's statute and board rules, which NASCLA does not.

Which should I sit first?

Usually the NASCLA exam, since the general material makes the state-specific version easier afterwards.

How do I prepare for the state exam?

From the state's own published statute, board rules and candidate handbook. National material is not much use.