General Contractor License Group 3 ($150,000) Bond - Statewide in South Carolina

Brief Summary

The $150,000 bond is how a South Carolina general contractor qualifies for Group 3 without a CPA compiled financial statement. It takes the place of the $150,000 net worth showing the Contractor's Licensing Board requires, it supports bids and jobs up to $1,000,000 each, and it stays on file with the board for as long as you hold the license.

The $150,000 in this bond's name is not a project size. It is the net worth a Group 3 general contractor must show under S.C. Code 40-11-260, and Section 40-11-262 lets the contractor post a surety bond in that same amount instead of filing a financial statement. A Group 3 general contractor may bid and perform jobs up to $1,000,000 per job. The bond names the State of South Carolina as obligee, is filed with the South Carolina Contractor's Licensing Board, and must stay in force for as long as the license is held. General contractor licenses expire October 31 of even numbered years, so the current renewal deadline is October 31, 2026.

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How to Apply for a General Contractor License Group 3 ($150,000) Bond:

• Confirm Group 3 fits your work: the largest single job you will bid or perform is $1,000,000 or less.
• Have the business name exactly as registered with the S.C. Secretary of State and shown on the license application.
• Complete the bond application with owner and business details for the surety's review.
• The surety signs the board's Surety Bond for General Contractors form for $150,000 and attaches its power of attorney.
• Submit the executed bond to the Contractor's Licensing Board with the initial application and $350 license fee, or with your renewal.
• Keep the bond in force and file a bond continuation when you renew by October 31 of even numbered years.

Detailed Information About the South Carolina General Contractor License Group 3 ($150,000) Bond:

What the $150,000 actually means

This bond is often described as a bond for jobs over $150,000. That is not how South Carolina law works. The Contractor's Licensing Board places every licensed general contractor in one of five groups based on the largest job the contractor may bid and perform. Under S.C. Code 40-11-260, a Group 3 general contractor may take bids and jobs not exceeding $1,000,000 per job and must show a net worth of $150,000 or working capital of $100,000.

Section 40-11-262 allows a surety bond in place of that financial statement, in the same amount as the net worth required for the license group. For Group 3 that is $150,000. The lower working capital figure does not set the bond amount.

Where Group 3 sits among the general contractor groups

• Group 1: jobs up to $100,000, net worth $20,000 or working capital $10,000, bond $20,000
• Group 2: jobs up to $400,000, net worth $60,000 or working capital $40,000, bond $60,000
• Group 3: jobs up to $1,000,000, net worth $150,000 or working capital $100,000, bond $150,000
• Group 4: jobs up to $3,000,000, net worth $250,000 or working capital $175,000, bond $250,000
• Group 5: no job limit, net worth $350,000 or working capital $250,000, bond $350,000

Why a Group 3 contractor posts the bond

A first time Group 3 application must include a financial statement compiled by a licensed CPA in accordance with GAAP. At renewal the statute also accepts an owner prepared statement. The bond is the alternative for a contractor who does not want to wait on a CPA compilation, or whose balance sheet does not yet show $150,000 of net worth. A contractor who later files a qualifying financial statement can drop the bond.

Terms written into the law

• Issued by a surety authorized to transact surety business in South Carolina
• State of South Carolina listed as obligee
• Continuous in form and kept in force for as long as the license is held
• For the benefit of anyone damaged by the contractor's breach of a construction contract, or of a contract for labor, materials or professional services for construction, or by an unlawful act or omission in performing construction
• In addition to, and not in place of, any other bond required by law or by a party to a contract with the contractor
• Cancelable only on 30 days notice to the board. If the bond is canceled, the contractor has ten days to file proof of net worth or working capital or the license is suspended
• The board may require a larger bond after a violation or when an applicant cannot meet the financial responsibility guidelines

License basics

S.C. Code 40-11-30 requires a license for general contracting jobs greater than $10,000. The initial license fee is $350. Licenses renew every two years for $135, with late fees for renewals filed from November 1 through January 31, after which the license lapses and must be reinstated. Taking a job above the Group 3 limit can draw a penalty under Section 40-11-280. To move up a group, file a revision on the board's form with a Group 4 financial statement or a $250,000 bond.

Eligibility and Requirements for a South Carolina General Contractor License Group 3 ($150,000) Bond:

• Bond amount of $150,000, equal to the Group 3 net worth requirement in S.C. Code 40-11-260.
• Surety authorized to transact surety business in South Carolina.
• State of South Carolina named as obligee.
• Continuous form with at least 30 days written cancellation notice to the board.
• Power of attorney from the surety attached to the bond.
• The bond replaces only the financial statement. Exams, experience and all other license requirements still apply.

South Carolina General Contractor License Group 3 ($150,000) Bond FAQs:

Official and Additional Resources for the South Carolina General Contractor License Group 3 ($150,000) Bond: