South Carolina
Contractor Bonds

South Carolina Contractor Bond License Guide

South Carolina requires contractors to obtain a contractor bond to become licensed. The amount for these bonds varies depending on the type of contractor, location, and project. Some of these bonds can be issued instantly online for a set premium or are prorated for the bond term’s end date.

Why are contractor bonds required in South Carolina?

Multiple counties and cities require contractors in South Carolina to post surety bonds prior to starting work. These bonds ensure the principal (contractor) will abide by all applicable rules and legislation outlining the classification-specific work, in addition to protecting consumers from damages caused by negligent or faulty work. Obligees (South Carolina government entities requiring the bond) place the liability on the principal.

Affected contractors can file a claim against the surety bond; if found to have validity, the surety (the company that financially backs the bond) will pay the claim up to the bond’s full amount. However, the principal is required to reimburse the surety in full for any money paid out.

General Contractor License Bond

General contractors are required by South Carolina to become licensed to work in the state. Bond amounts will vary by the contractor’s classifications.

• Post a surety bond for a one-year term expiring on October 31 of every even-numbered year. The bond is currently underwritten, meaning the applicant’s credit history must be reviewed by a surety underwriter to determine the cost. The bond amounts are set for classifications with specific requirements:

  • Group 1: $20,000 bond amount

    • Bids and jobs do not exceed $50,000

    • Net worth of $10,000

    • Owner-prepared financial statement with an affidavit of accuracy

  • Group 2: $80,000 bond amount

    • Bids and jobs do not exceed $200,000

    • Net worth of $40,000

    • Owner-prepared financial statement with an affidavit of accuracy

  • Group 3: $200,000 bond amount

    • Bids and jobs do not exceed $500,000

    • Net worth of $100,000

    • A financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with the Generally Accepted Accounting Principles (GAAP), including all disclosures required by the GAAP indicating a required net worth of $100,000

  • Group 4: $350,000 bond amount

    • Bids and jobs do not exceed $1,500,000

    • Net worth of $175,000

    • A financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with the GAAP, including all disclosures required by the GAAP indicating a required net worth of $175,000

  • Group 5: $500,000 bond amount

    • Bids and jobs unlimited

    • Net worth of $250,000

    • A financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with the GAAP, including all disclosures required by the GAAP

Along with a surety bond, contractors must submit an application to become licensed. Applicants have two different options for becoming licensed:

• Initial application by exam:

  • Passing score on a PSI Business and Law Exam and a technical examination to acknowledge the applicant’s level of knowledge regarding principles, practices, etc. (More information can be found on the PSI Candidate Information Bulletin.)

  • $350 initial license fee

  • Certificate of registration of corporation with the South Carolina Secretary of State (if applicable)

• Initial application by reciprocity:

  • If a technical exam has already been passed in one of the provided states and the applicant’s current license is in good standing with his or her state, the candidate must submit an examination waiver form and/or letter of verification from that state’s licensing board.

  • Applicants must still take and provide a passing score on a PSI Business and Law Exam

  • $350 initial license fee

  • Certificate of registration of corporation with the South Carolina Secretary of State (if applicable)

Mechanical Contractor License Bond

Mechanical contractors are required by South Carolina to become licensed to work in the state. Bond amounts will vary by the contractor’s classifications.

• Post a surety bond for a one-year term expiring on October 31 of every odd-numbered year. The bond is currently underwritten, meaning the applicant’s credit history must be reviewed by a surety underwriter to determine the cost. The bond amounts are set for classifications with specific requirements:

  • Group 1: $7,000 bond amount

    • Bids and jobs do not exceed $17,500

    • Net worth of $3,500

    • An owner-prepared financial statement with an affidavit of accuracy

  • Group 2: $20,000 bond amount

    • Bids and jobs do not exceed $50,000

    • Net worth of $10,000

    • An owner-prepared financial statement with an affidavit of accuracy

  • Group 3: $40,000 bond amount

    • Bids and jobs do not exceed $100,000

    • Net worth of $20,000

    • A financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with the GAAP, including all disclosures required by the GAAP indicating a required net worth of $20,000

  • Group 4: $80,000 bond amount

    • Bids and jobs do not exceed $200,000

    • Net worth of $40,000

    • A financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with the GAAP, including all disclosures required by the GAAP indicating a required net worth of $40,000

  • Group 5: $400,000 bond amount

    • Bids and jobs unlimited

    • Net worth of $200,000

    • A financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with the GAAP, including all disclosures required by the GAAP

Along with a surety bond, contractors must submit an application to become licensed. Applicants have two different options for becoming licensed:

• Initial application by exam:

  • Passing score on a PSI Business and Law Exam and a technical examination to acknowledge the applicant’s level of knowledge regarding principles, practices, etc. (More information can be found on the PSI Candidate Information Bulletin.)

  • $350 initial license fee

  • Certificate of registration of corporation with the South Carolina Secretary of State (if applicable)

• Initial application by reciprocity:

  • If a technical exam has already been passed in one of the provided states and the applicant’s current license is in good standing with his or her state, the candidate must submit an examination waiver form and/or letter of verification from that state’s licensing board

  • Applicants must still take and provide a passing score on a PSI Business and Law Exam

  • $350 initial license fee

  • Certificate of registration of corporation with the South Carolina Secretary of State (if applicable)

Residential Builder Bond

Residential builders are required by South Carolina to become licensed to work in the state. Bond amounts will vary by the contractor’s classifications.

• Post a surety bond for a one-year term. The bond’s amounts and costs are dependent on the classification of the residential builder. Candidates must also include additional documents within their application.

  • Registered residential specialty contractor:

    • $5,000 bond amount ($100 bond cost)

    • Application fee: $100 July 1 (odd-numbered year) to June 30 (even-numbered year) or $50 July 1 (even-numbered year) to June 30 (odd-numbered year)

    • Copy of identification

    • Copy of Social Security card

    • Verification of Lawful Presence form

    • Three letters of reference presenting good character and experience

    • Licenses expire June 30 of every odd-numbered year

  • Licensed residential specialty contractor:

    • $10,000 bond amount ($150 bond cost)

    • Electrical specialty contractor:

      • $135 application fee

      • Copy of identification

      • Copy of Social Security card

      • Verification of Lawful Presence form

      • Copies of W-2s from employees

      • Certifications, resumes, etc., showcasing previous experience

      • Application fee: $220 July 1 (odd-numbered year) to June 30 (even-numbered year) or $110 July 1 (even-numbered year) to June 30 (odd-numbered year)

    • HVAC specialty contractor:

      • $135 application fee

      • Copy of identification

      • Copy of Social Security card

      • Verification of Lawful Presence form

      • Copies of W-2s from employees

      • Certifications, resumes, etc., showcasing previous experience

      • Application fee: $220 July 1 (odd-numbered year) to June 30 (even-numbered year) or $110 July 1 (even-numbered year) to June 30 (odd-numbered year)

    • Plumbing specialty contractor:

      • $135 application fee

      • Copy of identification

      • Copy of Social Security card

      • Verification of Lawful Presence form

      • Copies of W-2s from employees

      • Certifications, resumes, etc., showcasing previous experience

      • Application fee: $220 July 1 (odd-numbered year) to June 30 (even-numbered year) or $110 July 1 (even-numbered year) to June 30 (odd-numbered year)

• Residential builder/certificate of authorization:

  • $15,000 bond amount ($225 bond cost)

  • Residential builder:

    • $135 application fee

    • Copy of identification

    • Copy of Social Security card

    • Verification of Lawful Presence form

    • Copies of W-2s from employees

    • Certifications, resumes, etc., showcasing previous experience

    • Application fee: $220 July 1 (odd-numbered year) to June 30 (even-numbered year) or $110 July 1 (even-numbered year) to June 30 (odd-numbered year)

  • Certificate of Authorization:

    • $100 application fee

    • Copy of registration certificate with the South Carolina Secretary of State

    • Dun & Bradstreet report

South Carolina city-specific contractor bonds

South Carolina residents must post a surety bond with the city or town they are working in. More information on specific cities can be found below.

City of Dillon General Contractor Bond

Contractors in the City of Dillon are required to purchase a $5,000 surety bond. Purchase your contractor bond instantly online for a one-year term for a $100 premium or receive 25% off for a multi-year purchase. To become licensed to work in the City of Dillon, applicants must have a South Carolina General Contractor’s license and a City of Dillon building license and building permit. These can be obtained from the Department of Code Enforcement; applicants can contact them at 843-774-0040, ext. 1012.

City of Forest Acres Contractor Bond

A $2,000 bond is required of contractors in the City of Forest Acres to become registered. Purchase your contractor bond instantly online for a one-year term for a $100 premium. A 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront. Along with the surety bond, applicants must have a South Carolina General Contractor’s license and a City of Forest Acres building license and building permit.

City of North Augusta Contractor Bond

The City of North Augusta requires licensed contractors to post a $1,000 contractor bond. For a $100 premium, this bond can be purchased instantly for a one-year term. Applicants must have a South Carolina General Contractor’s license and a City of North Augusta building license and building permit. These can be obtained from the Building Standards Department.

Many other cities and counties within the state of South Carolina hold contractor bond requirements. Check out our extensive list of South Carolina contractor bonds to find the one that’s right for you!