South Carolina contractor licensing: the $10,000 threshold, license groups and classifications

South Carolina licenses commercial general and mechanical contractors under Chapter 11 of Title 40 of the S.C. Code. The Contractor's Licensing Board, within the Department of Labor, Licensing and Regulation (LLR), issues the licenses. Residential builders and specialty contractors working on homes are licensed separately by the Residential Builders Commission. This guide covers the commercial side. Check LLR's current application before you file.

When a license is required

Under S.C. Code § 40-11-30, no business or individual may perform or offer to perform general or mechanical contracting work where the total cost of construction is more than $10,000 without a license. Act 69 of 2023 raised the threshold from $5,000 to $10,000, effective May 19, 2023. Offering to do the work, including bidding, counts.

License groups: how big a job you can take

A general contractor's license carries a group that caps the size of any single bid or job and sets a financial test (§ 40-11-260). You meet the test with either the net worth or the working capital figure:

• Group 1: jobs up to $100,000. $20,000 net worth or $10,000 working capital. Owner-prepared statement.
• Group 2: jobs up to $400,000. $60,000 net worth or $40,000 working capital. Owner-prepared statement.
• Group 3: jobs up to $1,000,000. $150,000 net worth or $100,000 working capital. CPA-compiled statement on the initial application.
• Group 4: jobs up to $3,000,000. $250,000 net worth or $175,000 working capital. CPA-compiled statement on the initial application.
• Group 5: unlimited. $350,000 net worth or $250,000 working capital. Audited balance sheet on the initial application.

Financial statements must have a balance sheet date no more than 12 months before the application. Mechanical contractor licenses have their own group structure. To move up a group, you apply for a revision, and your existing bidding limit stays in effect until it's approved.

Classifications

Section 40-11-410 sets classifications and subclassifications. Examples include General Contractors-Building, General Contractors-Highway (bridges, grading, asphalt and concrete paving, highway incidental work and more), and specialty subclassifications for things like water and sewer lines, marine work and boring and tunneling. A building licensee can perform some ancillary work, such as paving or grading directly associated with the building, up to 20% of the total cost of construction. Beyond that, the work needs a contractor with the right subclassification. Licensees are confined to their group and classifications (§ 40-11-270(A)).

Unlicensed subcontractors

Under § 40-11-270(E), a licensee may use unlicensed subcontractors for work within the licensee's own group and classification, as long as the licensee supervises them. The licensee is fully responsible for any violations the unlicensed sub commits.

On SCDOT and public work

• SCDOT accepts bids only from contractors holding an SCDOT prequalification certificate. See our SCDOT bidding guide.
• State and local public construction comes with bid security and payment bond requirements; see our lien and bond guide.

A note on our listings

LLR's license lookup doesn't offer a free statewide bulk export, so our GC Finder starts from SCDOT's prequalified contractor list and the SC Unified Certification Program DBE directory. Licensed contractors can add or claim a listing and show their license number and group.