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South Carolina Contractor License and Residential Builder Bonds


What is a South Carolina Contractor License or Residential Builder Bond?

South Carolina has many contractor license classifications and each subset of licensure has its own surety bond requirement. In most cases you're required to purchase a surety bond before the Department of Labor, Licensing, and Regulation will issue your license.

This surety bond, called a contractor license bond, is a type of insurance contract required by the Department of Labor, Licensing, and Regulation for the protection of the South Carolina public. A contractor license bond is a a financial guarantee that you'll follow all South Carolina building codes and regulations, plus follow through on your contracting obligations to your customers.

When you purchase a contractor license surety bond, you're making this promise to the Department of Labor, Licensing, and Regulation and to your customers.

Get Your South Carolina Contractor License Bond

Contractor's License Bond for General Contractors

Bonds $20,000 or more up to $350,000

Contractor's License Bond for Mechanical Contractors

Bonds $7,000 or more up to $300,000

Licensed Residential Specialty Contractor (HVAC, plumber, or electrician) Bond
Registered Specialty Contractor Bond
Contractor License Bond - Filed with City, County or Other Local Government

Bonds up to $25,000

1-Year Bond Starts at $100.00
1.0%-1.8% of the Bond Amount


2-Year Bond Starts at $175.00
1.0%-1.8% of the Bond Amount

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Who Is Required To Purchase a South Carolina Contractor Contractor Bond?

At a high level South Carolina has four contractor license classifications:

  • General contractor license
  • Mechanical contractor license
  • Residential builder license
  • Residential specialty licenses

Within General and Mechanical Contractor licenses, there are over 30 specialized license classifications.

General and Mechanical contractor licenses are the only South Carolina contractor licenses that may not require a contractor license bond.

To avoid purchasing a contractor bond for a General and/or Mechanical contractor license, you must meet the following net-worth requirements.

General Contractor Net-Worth Requirements

Group Bid & Job $$ Limitation Net Worth / Equity
Group #1 $100k $20,000
Group #2 $400k $60,000
Group #3 $1mm $150k
Group #4 $3mm $250k
Group #5 Unlimited $350k

Mechanical Contractor Net-Worth Requirements

Group Bid & Job $$ Limitation Net Worth / Equity
Group #1 $35,000 $7,000
Group #2 $100k $15,000
Group #3 $200k $30,000
Group #4 $400k $60,000
Group #5 Unlimited $300k

All other contractor license classifications require a surety bond before your application can be approved and your license issued.

What is the Line of Credit Option?

You do have the option of supplying a bank line of credit in lieu of purchasing a surety bond. However, the line of credit option is often not a common choice because:

  • You must supply the entire bond amount in the account upfront
  • You typically have to keep the money in the account a couple years after you stop your contracting business

Because the bond premium is typically 1% to 2% of the bond amount, a surety bond will keep more money in your pocket, compared to tying up cash to support a line of credit.

The South Carolina Contractor Bond Amounts

The bond amounts are set by the Department of Labor, Licensing, and Regulation.

Each bond amount is different based on the license type and in many cases the projected size of the contracts that will be obtained.

The contractor bond amount is not the price. It's the amount of financial protection available to customers and subcontractors if they were financially harmed by the contractor on purpose.

General Contractor Bond Amounts

Group Bid & Job $$ Limitation Working Capital Net Worth / Equity Surety Bond
Group #1 $100k $10,000 $20,000 $20,000
Group #2 $400k $40,000 $60,000 $60,000
Group #3 $1mm $100k $150k $150k
Group #4 $3mm $175k $250k $250k
Group #5 Unlimited $250k $350k $350k

Mechanical Contractor Bond Amounts

Group Bid & Job $$ Limitation Working Capital Net Worth / Equity Surety Bond
Group #1 $35,000 $3,500 $7,000 $7,000
Group #2 $100k $10,000 $15,000 $15,000
Group #3 $200k $20,000 $30,000 $30,000
Group #4 $400k $40,000 $60,000 $60,000
Group #5 Unlimited $200k $300k $300k

Residential Builder Bond Amount

License Classification Bond Amount
Residential Builder $15,000

Residential Specialty Contractor Bond Amounts

License Type Bond Amount
Speciality Residential Builder $5,000
Specialty Electrical Contractor $10,000
Specialty HVAC Contractor $10,000
Specialty Plumbing Contractor $10,000

How Much Does a South Carolina Contractor Bond Cost?

It's important to understand how the price of a contractor license bond is determined before we look at the individual pricing.

The price is based on a rate determined by a surety.

A surety is an insurance company that underwrites surety bonds. The surety uses their own internal processes to determine a rate for the bond. The primary factors the surety will use to determine this rate are:

  • Personal credit or the business owner or owners
  • The business experience and industry expertise
  • Prior bond claims if any individual was licensed in the past and had a claim made against them

The rate multiplied by the bond amount is the purchase price.

Bond Amount x Rate = Price

This is why it's so important to work with a specialized surety agency like Surety Bonds Direct.

At Surety Bonds Direct, we earn your business by working with our network of A-rated sureties and price shop for you to find the lowest bond price in the market.

And Surety Bonds Direct has secured low fixed prices for all Residential Builder and Speciality licenses with no credit check.

How Much Does a South Carolina General and Mechanical Contractor Bond Cost

The general and mechanical contractor bonds require a custom quote from a surety.

Let's use the General Contractor $60,000 Group 2 bond amount as an example. The following prices are based on good rates to average.

The Mechanical Contractor bond pricing will follow the exact process. The only thing that changes is the bond amount and the custom rate you're quoted.

Bond Amount Surety Bond Rate Price
$60,000 0.5% $300
$60,000 1.5% $900
$60,000 3.0% $1,800

It costs nothing to have us price shop for you. Plus there's zero obligation to purchase once you do get pricing.

There's no risk to get pricing that will help you make the best decision. Start the quote process today.

Click here to start the General Contractor quote process.

Click here to start the Mechanical Contractor quote process.

How Much Does a South Carolina Residential Builder Bond Cost?

Remember the Residential Builder bond has a set amount of $15,000. Surety Bonds Direct has secured low fixed prices with no credit check.

This means you can instantly purchase your bond now and have it issued within one business day.

In the table below you'll see you can purchase the bond for a 1, 2, or 3 year term.


What is a Bond Term

The bond term is how long the surety bond remains active before it must be renewed. The benefit of choosing a longer bond term are:

  • A discount on the price of the bond
  • You don't have to worry about the bond from year to year

License Classification Bond Amount Bond Term Bond Price Click to Purchase
Residential Specialty $5,000 1 Year $150.00

Click to Click to Purchase

Residential Specialty $5,000 2 Year $263.00

Click to Click to Purchase

Residential Specialty $5,000 3 Year $375.00

Click to Click to Purchase

How Much Does a South Carolina Residential Specialty Contractor Bond Cost

Just to recap, the bond amounts for Residential Specialty contractor bonds are:

  • Specialty Residential Builder - $5,000
  • Specialty Electrical Contractor - $10,000
  • Specialty HVAC Contractor - $10,000
  • Specialty Plumbing Contractor - $10,000

Just like the Residential Builder license bond, Surety Bonds Direct has secured low fixed prices with zero credit check required.

Residential Specialty Bond Pricing

License Classification Bond Amount Bond Term Bond Price Click to Purchase
Residential Specialty $5,000 1 Year $100.00

Click to Click to Purchase

Residential Specialty $5,000 2 Year $170.00

Click to Click to Purchase

Residential Specialty $5,000 3 Year $255.00

Click to Click to Purchase

Electrical, HVAC, and Plumbing Specialty Bond Pricing

License Classification Bond Amount Bond Term Bond Price Click to Purchase
Residential Specialty $5,000 1 Year $150.00

Click to Click to Purchase

Residential Specialty $5,000 2 Year $255.00

Click to Click to Purchase

Residential Specialty $5,000 3 Year $383.00

Click to Click to Purchase

Why is a South Carolina Contractor License Bond Required?

The Department of Labor, Licensing, and Regulation requires all individuals and businesses to obtain a contractor license in order to perform contracting services in South Carolina.

This license process ensures each contractors has:

  • A minimum level of experience
  • Obtained the necessary level of education
  • The proper business records are submitted
  • Selected the appropriate monetary limit
  • All ownership background checks are passed

Obtaining a contractor license bond is a requirement to submit your application for review and approval.

A contractor license bond has a very specific purpose.

What Does a South Carolina Contractor License Bond Protect Against?

The contractor bond is a type of insurance for the protection of the contractor's customers and hired subcontractors.

Unfortunately, there will always be licensed contractors who purposefully decide to harm their customers or subcontractors to make more money.

These fraudulent actions of misconduct include:

  • Breaking the terms of a construction project
  • Taking deposits or down payments and never starting or completing a project
  • Replacing agreed upon materials with cheaper alternatives to increase profits
  • Fail to pay subcontractors after work has been completed
  • Fail to follow building codes and purposefully performing poor quality work

If a contractor is found guilty of any of these actions, a claim can be made against the contractor license bond for financial repayment.

Remember the amount of coverage only extends to the individual bond amount.

What Happens After You Purchase Your Bond?

Remember, the following bonds are available for instant purchase:

  • Residential Builder bond
  • All Specialty Residential Contractor bonds

The General Contractor and Mechanical Contractor license bonds require a custom quote before you can agree to purchase the bond.

Once you complete purchase of your bond, Surety Bonds Direct's issuing department will prepare your bond with the correct signatures, seals, and the required power of attorney.

The South Carolina Department of Labor, Licensing, and Regulation allows us to email you the surety bond. Once you receive your bond, you can submit a copy of the bond with your application.

As you can see, the surety bond process is easy and fast. Yet, don't let this be the last step of the application process you complete. Get it done so you have your bond ready to submit.

Renewing Your Contractor Bond

You've learned about the surety bond term (or duration) and how you get to choose the term that meets your needs.

For the General and Mechanical Contractor bonds, the bond term is typically one year before the bond will have to be renewed.

Whichever bond and bond term you have, renewing your bond follows a similar process.

Your bond specialist will reach out to you 30 to 45 days in advance of your renewal date to make paying the renewal premium easy.

Once you pay the renewal premium, your bond remains active.

South Carolina Contractor License Bonds are Continuous

A continuous bond means the original bond remains active as long as you pay the renewal premium.

Most of the time, you never have to worry about having a new bond issued or submitting the bond to the Department of Labor, Licensing, and Regulation.

If we find you lower pricing, we'll get you that bond and in this case you will have to submit it to the Department.

Contractor License Bonds And Getting Your South Carolina Business License/Registration

If you're applying for the first time to get your South Carolina contractor license, read our posts covering each of the major license classifications. These posts break the process down into an easier series of steps to help make sure your application is ready to be submitted.

South Carolina Residential Contractor License

Click here and read about the 5 steps for submitting your South Carolina Residential Builder license. At a high level the steps are:

  1. Required residential contracting experience
  2. Organize the business entity and structure
  3. Submit the Residential Builder license application
  4. Pass the license examination
  5. Purchase the surety bond and pay all necessary fees

South Carolina Residential Specialty License

Click here to read about the 4 steps to getting your South Carolina Specialty Residential license. At a high level the steps are:

  1. Pass the required examinations
  2. Organize the proper business entity and structure
  3. Collect proof of required work experience
  4. Purchase the surety bond and pay all application fees

South Carolina General and Mechanical Contractor License

Click here and read about the General and Mechanical Contractor licenses. This includes the 3 high level steps to getting licensed.

  1. Designate the Primary Qualifying Party
  2. Technical and business examinations
  3. Determine the appropriate classification group limits

Additional South Carolina Contractor License Bond Resources & Links

South Carolina Department of Labor, Licensing and Regulation