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South Carolina Contractor License Bond

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What is a South Carolina Contractor License Bond?

Many residential and commercial construction contractors throughout the United States must meet licensing requirements in order to work legally in the industry. In South Carolina, licensing requirements are mandated on a state level, as well as some local jurisdictions. Part of the licensing process involves posting a surety bond, known as a South Carolina contractor license bond.

This surety bond for construction contractors working in South Carolina helps protect the customers and the state when engaging in business with a licensed contractor. Should work not be completed or it is performed improperly, customers can make a claim against a South Carolina contractor license bond. A bond claim covers financial losses incurred, but it does not provide protection or insurance to the licensed contractor.

Who Needs a South Carolina Contractor License Bond?

A South Carolina contractor license bond is necessary for any residential builder, specialty contractor in HVAC, plumbing, or electrical projects, and other registered specialty contractors such as masons, drywall installers, carpenters, and insulation installers. These requirements are set on a state level. However, local jurisdictions may also have South Carolina contractor license bond requirements, based on the type of work performed.

To ensure you have the right South Carolina contractor license bond in the correct amount, it is essential to check with both the state and county or city's licensing authority during the licensing process.

South Carolina Contractor License Bond Obligee Details

As with any other surety bond, a South Carolina contractor license bond connects three parties: the licensed contractors, known as the principal of the bond, the surety company that provides the bond, and the state or local licensing authority, known as the obligee of the bond. The obligee for local licensing requirements varies from one jurisdiction to the next. However, the state obligee for South Carolina contractor license bonds is as follows:

South Carolina Contractor's Licensing Board

110 Centerview Drive

Columbia, South Carolina 29210

Phone: 1-803-896-4686

How Much Does a South Carolina Contractor License Bond Cost?

The price you pay for a South Carolina contractor license bond varies, depending on the total amount of the bond required and your financial track record. The bond amount that must be in place is based on the type of construction contracting work performed.

For example, a residential builder is required to secure a $15,000 South Carolina contractor license bond as part of the licensing process. A specialty contractor in HVAC, plumbing or electrical work, must post a $10,000 bond. Fortunately, this is the not the out-of-pocket cost of a South Carolina contractor license bond.

The bond price a contractor pays is a percentage of the total bond amount, typically ranging from 1 to 10% of the bond total. Surety companies take on risk when issuing a bond, and so a check of credit is often part of the bonding process. Contractors with a strong financial track record and healthy credit history qualify for a lower bond price than those with bad credit.

How do You Get a South Carolina Contractor License Bond?

Licensed contractors in South Carolina can start the process of getting a license bond by submitting a brief online application. The surety company reviews the type of bond requested as well as the amount, and provides a bond quote based on these details. A South Carolina contractor license bond is issued once payment is made, and it may need to be renewed annually to remain in compliance with state and local laws.


Frequent Questions

How much does a bond cost?

Pricing is a percentage of the contractor license bond amount that’s required of you, which is based on your personal credit. Use our bond pricing tool to to get a quick ballpark estimate.

Can I get bonded with bad credit?

Yes. You can apply and get bonded with bad credit. Our agency is the largest writer of bonds in the county, which allows us to approve contractors for bonds when other agencies cannot.

Are these the same as contract bonds?

No. Contractor license bonds ensure you will abide by the laws of your state, city or municipality when performing contracting work. Contract bonds guarantee public projects will be completed properly and are a separate bond type. You can learn more about contract surety bonds by visiting the contractor bond center.

Do I need a state or local bond?

It depends on who is requiring the bond of you, the local municipality, county or state. Depending on your location, it is possible you may need both a local and state bond, as contractor license bond requirements can vary drastically. You can select your state to see a full list of contractor license bond requirements.


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