Brief Summary
Mechanical licenses in South Carolina run on their own odd-year renewal cycle, and the $15,000 Group 2 bond follows it. File the bond with the Contractor's Licensing Board in place of a financial statement and you can bid plumbing, electrical, air conditioning, heating and other mechanical work up to $100,000 per job without documenting $15,000 of net worth.
Group 2 mechanical contractors in South Carolina may bid and perform jobs up to $100,000 each. Section 40-11-260 sets the Group 2 financial test at $15,000 net worth or $10,000 working capital, and Section 40-11-262 allows a $15,000 surety bond listing the State of South Carolina as obligee to be filed in place of the financial statement. All mechanical contractor licenses expire October 31 of odd-numbered years.
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Detailed Information About the South Carolina Mechanical Contractors License Group 2 ($15,000) Bond:
Odd years, not even years
The Contractor's Licensing Board states that all mechanical contractor licenses expire October 31 of odd-numbered years. General contractor licenses expire in even-numbered years. The Board also publishes a separate bond form for each license type, so make sure your surety issues the Mechanical Contractors Surety Bond form and not the general contractor version.
Where Group 2 sits
Section 40-11-260(B) sets five mechanical groups. Each bond amount equals the group's net worth figure.
Group 1: jobs up to $35,000, bond $7,000 Group 2: jobs up to $100,000, bond $15,000 Group 3: jobs up to $200,000, bond $30,000 Group 4: jobs up to $400,000, bond $60,000 Group 5: unlimited, bond $300,000
Group 2 is the highest mechanical group where an owner-prepared financial statement, on the Board's form with an affidavit of accuracy, is accepted at initial licensure. Group 3 and above need a statement compiled by a licensed CPA for the first application. A Group 2 applicant can file that owner-prepared statement showing $15,000 net worth or $10,000 working capital, or file the $15,000 bond instead under Section 40-11-262.
What the bond answers for
The bond must come from a surety authorized to transact surety business in South Carolina. It runs to the benefit of any person damaged by the contractor's breach of a construction contract, breach of a contract to furnish labor, materials or professional services for construction, or an unlawful act or omission in performing construction. It sits on top of, not in place of, any other bond the law or a contracting party requires.
Form and term
The Board's form (Rev. 07/10/2023 V1.4) has a checkbox for each group, so Group 2 at $15,000 must be marked. It needs the signatures of the principal and the surety's attorney-in-fact, the surety's seal and an attached power of attorney. Each license term on the form is 24 months, November 1 through October 31. Either party may cancel with written notice to the Board and the other party at least 30 days before the effective date.
Classifications covered
The Board licenses mechanical work in eight classifications: Air Conditioning, Electrical, Heating, Lightning Protection, Packaged Equipment, Plumbing, Process Piping and Refrigeration. The qualifying party passes the technical exam for the classification plus the S.C. Business Management and Law for Commercial Contractors exam.
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