South Carolina Contractor License Exam — All Questions

Under South Carolina's contractor Financial Groups (Group I through Group V), a Group III contractor qualifies for a bid limit of up to what amount?

• a.$1,000,000✓
• b.$400,000
• c.$3,000,000
• d.$100,000

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 Group III contractor may bid projects up to $1,000,000.S.C. Code Title 40, Ch. 11 Financial Groups I-V (H.4115, 2023)

To qualify for Group V (unlimited bid limit) in South Carolina, what minimum net worth must a contractor show, and what surety bond must it post (the bond equals the group's net-worth figure)?

• a.$250,000 net worth and a $250,000 bond
• b.$350,000 net worth and a $350,000 bond✓
• c.$1,000,000 net worth and a $1,000,000 bond
• d.$150,000 net worth and a $150,000 bond

Group V (unlimited bid limit) requires a minimum net worth of $350,000 (or working capital of $250,000) and a surety bond equal to the group net worth, which is $350,000. The bond amount for each group equals that group's net-worth requirement.S.C. Code Title 40, Ch. 11 Financial Groups (Group V thresholds)

How may a South Carolina contractor meet the financial requirement for a given Financial Group, and how is the required surety bond amount determined?

• a.By gross annual revenue, with no bond required
• b.Only by cash held in a business bank account, with no bond ever required
• c.By showing EITHER the group's minimum net worth OR its minimum working capital; the required surety bond equals the group's net-worth figure✓
• d.By net worth only, with a flat $10,000 bond in every group

A contractor may qualify for a Financial Group by showing either that group's minimum net worth or its minimum working capital. The surety bond required for the group equals that group's net-worth figure, giving owners a source of recovery scaled to the contractor's bid limit.S.C. Code Title 40, Ch. 11 (qualifying by net worth or working capital; bond = net worth)