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.
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/