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Expert Surety Bonds Since 2004
Need assistance? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Expert Surety Bonds Since 2004
A Tier 3 license is what lets a South Carolina installer take on Standard 610 specialized systems, and SCDES will not issue or renew it without proof of a bond and liability insurance. This $20,000 bond names SCDES as obligee and has to stay in force for as long as you hold the Tier 3 license.
South Carolina Regulation 61-56, Section 703, requires every Tier 3 onsite wastewater system installer to furnish proof of both a bond and insurance before licensure and at each renewal, and to keep both in force for as long as the Tier 3 license is held. The South Carolina Department of Environmental Services (SCDES), not DHEC, is now the obligee. SCDES recommends the bond amount cover the most expensive system the installer will install, and this page covers the $20,000 bond.
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First, the obligee. Septic installer licensing is now handled by the South Carolina Department of Environmental Services. The SCDES memo to Tier 3 installers says SCDES must be listed as the obligee on the bond. Check that the obligee line reads SCDES before the bond is signed.
Second, the amount. R.61-56 does not set a fixed dollar figure for the Tier 3 bond. The SCDES memo says the Department recommends the bond amount cover the most expensive system the Tier 3 installer will be installing. This page covers the $20,000 bond. If your largest jobs cost more than that, ask SCDES what amount it expects before the bond is issued.
Section 703 requires both insurance and bond coverage. The bond does not satisfy the insurance requirement. According to the SCDES memo, general liability insurance is the coverage most commonly received, the insurance amount is at the installer's discretion, and the certificate should list SCDES, 2600 Bull Street, Columbia, SC 29201 as certificate holder. The memo lists the acceptable bond types as a License or Permit bond or a Performance bond.
Failure to maintain both the insurance and the bond results in suspension or revocation of the Tier 3 license.
Under R.61-56, a Tier 3 installer may install all Tier 1 and Tier 2 systems plus all Standard 610 Specialized Onsite Wastewater Systems, and may repair existing systems. To qualify, an applicant must either have been a licensed onsite wastewater system installer actively installing for the three years immediately before applying, or hold an installer license from another state with affidavits from that state's regulatory authority showing five years of experience. In both cases there can be no pending or prior disciplinary or enforcement action involving onsite wastewater system contracting. Applicants also pass the Department's examination.
The Tier 3 initial and renewal fee is $200. Tier 1 and Tier 2 are $100 each. Every license is valid for one year. Renewal fees are due no less than thirty calendar days from the billing date, and a license expires when the fee is ninety calendar days past due. Renewal applications include proof of continuing education units and proof of the bond and insurance. Applications go to the Department's regional environmental office that covers the county of the applicant's primary place of business.
Under Section 704, installers licensed as master contractors under the previous R.61-56.2 became Tier 3 installers when tiered licensure took effect. SCDES states that change was effective July 1, 2022. Those licenses carry the same bond and insurance requirement at renewal.
SCDES. The South Carolina Department of Environmental Services now licenses septic installers, and its Tier 3 memo says SCDES must be listed as obligee on the bond.
R.61-56 does not set a fixed figure. SCDES recommends the bond cover the most expensive system you will install. This page covers the $20,000 bond. If your largest systems cost more, confirm the amount with SCDES before the bond is issued.
Yes. Section 703 requires both insurance and bond coverage, before licensure and at every renewal. Letting either one lapse leads to suspension or revocation of the Tier 3 license.
Yes. Under Section 704, master contractors licensed under the old R.61-56.2 became Tier 3 installers when tiered licensure took effect, and Tier 3 renewals require proof of bond and insurance.
One year. The Tier 3 fee is $200 for both the initial license and each renewal, and a license expires when the renewal fee is ninety calendar days past due.
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