Chapter 11 of 1914% of exam

South Carolina Financial Groups

South Carolina ties a contractor's bid limit to its financial strength through five Financial Groups. This chapter covers the group bid limits, the Group V thresholds, and how a contractor qualifies and bonds.

Financial Groups I through V

The Financial Groups tie bid limit to financial strength: Group I is $100,000, Group II is $400,000, Group III is $1,000,000, Group IV is $3,000,000, and Group V is unlimited. A contractor may only bid work up to the limit of its group, so the group determines the size of project it can pursue.

Qualifying and the bond

A contractor qualifies for a Financial Group by showing either that group's minimum net worth or its minimum working capital, and the required surety bond equals the group's net-worth figure. Group V (unlimited bid limit), for example, requires a minimum net worth of $350,000 (or $250,000 working capital) and a $350,000 bond.

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