South Carolina Estimating & Bidding
A sound bid combines the right profit math, correct overhead allocation, and accurate unit pricing. This chapter covers margin, overhead, and the unit-cost method.
Markup versus margin
Margin is profit as a share of the selling price. For a target margin, divide cost by (1 minus the margin): a $90,000 job at a 25% margin is bid at $90,000 / 0.75 = $120,000. Multiplying cost by 1.25 gives $112,500, which is only a 20% margin - the classic markup-versus-margin trap.
Allocating overhead
Overhead must be spread onto each job before profit is added. If overhead runs 15% of direct cost, a job with $40,000 of direct cost carries $6,000 of overhead, for a total cost of $46,000 before profit. Failing to allocate overhead is a common way contractors underprice work.
The unit-cost method
The unit-cost method multiplies a known cost per unit by the measured quantity from the takeoff. Framing priced at $6.50 per square foot on a 2,400-square-foot house is $6.50 x 2,400 = $15,600. Reliable unit prices, drawn from historical cost records, make the estimate defensible.
State-specific details
State exam facts
- State regulator
- South Carolina Contractor's Licensing Board (CLB), Department of Labor, Licensing and Regulation (LLR)
- Passing score
- 70%
- Scored questions
- 50
- Time limit
- 125 minutes
Does South Carolina require a state contractor license?
Yes. The South Carolina Contractor's Licensing Board (CLB), within LLR, licenses commercial contractors under S.C. Code Title 40, Chapter 11. A commercial license is required when the cost of the work exceeds $10,000 (after Act H.4115 of 2023).
What is on the South Carolina Business Management and Law exam?
The Business Management and Law exam is 50 questions, 125 minutes, and requires 70% to pass. Financial Groups I through V tie bid limit, working capital, net worth, and bond together (Group I $100,000 up to Group V unlimited), and applicants qualify by net worth or working capital.
What extra rules apply to South Carolina contractors?
A commercial CLB license also authorizes residential work, and a GC-Building contractor may self-perform ancillary specialty work only up to about 20% of project cost. The E-Verify requirement and the NPDES construction stormwater permit (one acre or more) also apply.
Sources: https://llr.sc.gov/clb/