Onsite Wastewater System Installer - Tier 3 ($20,000) Bond - South Carolina DHEC in South Carolina
Table of Contents
Brief Summary
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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How to Apply for an Onsite Wastewater System Installer - Tier 3 ($20,000) Bond:
- Confirm you qualify for Tier 3: three years of active installing as a licensed installer, or five years of licensed experience in another state documented by affidavits, with no disciplinary or enforcement history.
- Ask SCDES what bond amount it expects, given its recommendation that the bond cover your most expensive system.
- Obtain the surety bond, as a License or Permit bond or a Performance bond, naming SCDES as obligee.
- Obtain liability insurance with SCDES, 2600 Bull Street, Columbia, SC 29201 listed as certificate holder.
- Submit the application, the $200 Tier 3 fee and proof of bond and insurance to the SCDES regional environmental office for your county.
- At each annual renewal, submit proof of continuing education, bond and insurance.
Detailed Information About the South Carolina Onsite Wastewater System Installer - Tier 3 ($20,000) Bond:
Two things installers get wrong
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.
The insurance is a separate requirement
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.
What Tier 3 covers and who qualifies
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.
Fees, term and renewal
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.
Former master contractors
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.
Eligibility and Requirements for a South Carolina Onsite Wastewater System Installer - Tier 3 ($20,000) Bond:
- South Carolina Department of Environmental Services (SCDES) named as obligee.
- Bond amount recommended by SCDES to cover the most expensive system the installer will install.
- Separate liability insurance, in an amount at the installer's discretion.
- Bond and insurance kept in force for as long as the Tier 3 license is held.
- One year license term with a $200 Tier 3 initial and renewal fee.
- Passing the Department's examination before licensure.
South Carolina Onsite Wastewater System Installer - Tier 3 ($20,000) Bond FAQs:
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.
