South Carolina's contractor license threshold is $10,000; here is how the license groups cap job size

In South Carolina, any business or individual performing or offering to perform general or mechanical contracting work over $10,000 needs a license from the Contractor's Licensing Board, under S.C. Code § 40-11-30. The threshold was $5,000 until Act 69 of 2023, which took effect May 19, 2023.

Groups limit how big a job you can take

A South Carolina general contractor's license carries a group, which sets the largest single bid or job allowed and a financial test (§ 40-11-260). You meet the test with either the net worth or the working capital figure:

• Group 1: up to $100,000 per job; $20,000 net worth or $10,000 working capital.
• Group 2: up to $400,000; $60,000 or $40,000.
• Group 3: up to $1 million; $150,000 or $100,000, with a CPA-compiled statement on the initial application.
• Group 4: up to $3 million; $250,000 or $175,000, with a CPA-compiled statement on the initial application.
• Group 5: unlimited; $350,000 or $250,000, with an audited balance sheet on the initial application.

Financial statements must have a balance sheet date within 12 months of the application. Licensees are confined to their group and classifications (§ 40-11-270(A)). To move up, you apply for a revision, and existing bidding limits stay in effect until it's approved.

Classifications and unlicensed subs

Section 40-11-410 sets classifications such as General Contractors-Building and General Contractors-Highway, plus subclassifications for bridges, grading, paving, water and sewer lines, marine work and more. A building licensee can do some directly related ancillary work, such as paving or grading for the building, up to 20% of the total cost of construction.

Under § 40-11-270(E), a licensee may use unlicensed subcontractors for work within the licensee's own group and classification, but only with supervision. The licensee is fully responsible for any violations they commit.

Highway work

SCDOT requires its own prequalification certificate to bid. The state license and SCDOT prequalification are separate tests. Our licensing guide and SCDOT bidding guide cover both. This is a summary, not legal advice.

Owners and primes share the risk

Section 40-11-200(B) makes it a violation for an awarding authority, owner or contractor to consider a bid, sign a contract or let a contractor begin work unless the bidder has the licenses the chapter requires. A bid from a contractor who wasn't properly licensed when it was submitted can't be reconsidered or resubmitted. Practicing without a license, or knowingly submitting false information to get one, is a misdemeanor punishable by up to a year in prison or a $5,000 fine (§ 40-11-200(A)).

Use the exact licensed name

Under § 40-11-370, it is unlawful to engage in construction under any name other than the exact name on the license. That includes marketing, advertising, site signs and contracts. Vehicle advertising may use an abbreviated name if it isn't misleading. An entity without a valid license, or one that contracts under a different name, can't sue in law or equity to enforce the contract.

Don't let it lapse

Licenses renew every two years (§ 40-11-250). A renewal not postmarked by the expiration date lapses the license, and a firm that keeps working is practicing without one. Since the 2023 amendments, a lapsed license can be renewed within 90 days with late fees, and if approved, the renewal is retroactive to the expiration date. After that, the firm must apply as a new licensee.

Qualifying parties

Each license depends on a qualifying party who has passed the required technical exam and the South Carolina law exam, each with a score of 70% or better (§ 40-11-230). An individual can take an exam twice in 12 months and then once every six months.