South Carolina General Contractors and Mechanical Contractors Need a Surety Bond
Contractors in South Carolina are licensed through the South Carolina Licensing Board. General contractors and mechanical contractors who work on projects over $5,000 must be licensed. A part of licensing includes obtaining a surety bond.
License and Surety Bond Requirements:
As of 2018, the state of South Carolina requires surety bonds for general and mechanical contractors. A bond protects anyone who may be damaged by an act or omission of a contractor who breaches the construction contract.
The license fee is based on the date the applicant submits an application, and is between $175 and $350.
Licenses for general contractors expire Oct. 31 every even-numbered year.
Mechanical contractor licenses expire Oct. 31 every odd-numbered year.
A surety bond amount is required in an amount two times the net worth requirement for the group level applied for. A bond is continuous and must be maintained as long as the applicant is licensed.
General Contractors
| Group | Net Worth | Bid and Job Amount | Bond Amount |
|---|---|---|---|
| 1 | $10,000 | $50,000 | $20,000 |
| 2 | $40,000 | $200,000 | $80,000 |
| 3 | $100,000 | $500,000 | $200,000 |
| 4 | $175,000 | $1.5 million | $350,000 |
| 5 | $250,000 | Unlimited | $500,000 |
Mechanical Contractors
| Group | Net Worth | Bid and Job Amount | Bond Amount |
|---|---|---|---|
| 1 | $3,500 | $17,500 | $7,000 |
| 2 | $10,000 | $50,000 | $20,000 |
| 3 | $20,000 | $100,000 | $40,000 |
| 4 | $40,000 | $200,000 | $80,000 |
| 5 | $200,000 | Unlimited | $400,000 |
What Will This Bond Cost?
The premium amount you pay for a South Carolina Contractor's Licensing Board Surety Bond depends on your bond amount, plus your business and personal financials. Our rates start at 3% of the bond amount with good credit. Contact our Surety Bond Specialists for a free quote that fits your specific situation.
Did You Know?
Applicants may provide a surety bond instead of providing a financial statement showing a minimum net worth for a license group.
Related Links:
South Carolina Contractor License ApplicationSouth Carolina Contractor Licensing Board Information
More Surety Bond Questions?
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
For a downloadable application
