Residential Specialty Contractor (HVAC, plumber, or electrician) ($10,000) Bond - Statewide in South Carolina
Table of Contents
Brief Summary
This bond is tied to job size, not to the exam. A South Carolina residential HVAC installer, plumber or electrician needs the $10,000 bond on file with the Residential Builders Commission before performing or even offering to perform a project whose labor and materials total more than $5,000. It is written in your own name as the licensee, not your company's.
A residential HVAC installer and repairer, plumber or electrician licensed by the South Carolina Residential Builders Commission must have a $10,000 surety bond on file before performing or offering to perform work on a project whose total cost of construction exceeds $5,000. The individual licensee is the principal, never a company name, and the bond runs to the Commission, the State and any homeowner who sustains loss or damage.
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How to Apply for a Residential Specialty Contractor (HVAC, plumber, or electrician) ($10,000) Bond:
- Pass the Business Management and Law exam and the technical exam for your trade.
- Order the bond on the Commission's License Bond form at the $10,000 Licensed Residential Specialty Contractor amount.
- List yourself, the individual licensee, as principal. A company or business name is not accepted.
- Attach the surety's power of attorney. Handwritten or DocuSign signed bonds are rejected.
- File the bond with the South Carolina Residential Builders Commission before offering or performing any project over $5,000.
Detailed Information About the South Carolina Residential Specialty Contractor (HVAC, plumber, or electrician) ($10,000) Bond:
The $5,000 trigger
S.C. Code 40-59-220(D) says that when the cost of an undertaking performed by a residential specialty contractor for an individual property owner exceeds five thousand dollars, the contractor must obtain an executed bond in an amount approved by the Commission. The Commission's license packages set that amount at $10,000 for licensed HVAC, plumbing and electrical contractors. You do not have to send the bond with your application, but it must be on file before you perform or offer to perform work above $5,000 in labor and materials. A quote on a $7,000 changeout counts as an offer.
Three amounts on one form
The Commission uses a single License Bond form with three amounts: $15,000 for a residential builder or certificate of authorization, $10,000 for a licensed residential specialty contractor, and $5,000 for a registered residential specialty contractor. HVAC, plumbing and electrical are license categories, so the $10,000 line is the one that applies here.
Your name, not your company's
The packages require the individual's name as principal. A bond issued to a company or business name is not accepted. Handwritten bonds and bonds signed through DocuSign are rejected, and the surety's power of attorney must be attached.
What the bond covers
The form conditions the bond on compliance with the South Carolina Residential Code and health and safety requirements. A homeowner's claim must be brought within eight years after the event giving rise to it. The bond runs with the license year, July 1 through June 30, and the surety can cancel on at least 30 days written notice.
Before you get there
HVAC and plumber applicants need at least one year of residential experience in their trade within the past five years, a $135 nonrefundable application fee, and passing scores on both the Business Management and Law exam and the technical exam.
Eligibility and Requirements for a South Carolina Residential Specialty Contractor (HVAC, plumber, or electrician) ($10,000) Bond:
- Bond amount of $10,000 for licensed residential HVAC, plumbing and electrical contractors.
- Obligee: South Carolina Residential Builders Commission, State of South Carolina and any homeowner sustaining loss or damage.
- Surety authorized to write bonds in South Carolina. The Commission posts a list of companies with surety authority.
- Bond term follows the license year, July 1 through June 30.
- Surety may cancel on at least 30 days written notice.
South Carolina Residential Specialty Contractor (HVAC, plumber, or electrician) ($10,000) Bond FAQs:
Before you perform or offer to perform any project whose total cost of construction, labor and materials together, exceeds $5,000. The license packages say it does not have to accompany your application.
Per undertaking. The statute looks at the cost of an undertaking for an individual property owner, and the packages describe it as total cost of construction for a project.
No. The Commission requires the individual licensee's name as principal. A bond in a company or business name is not accepted.
No. Registered residential specialty contractors post $5,000. Licensed HVAC installers, plumbers and electricians post $10,000. Residential builders post $15,000. All three use the same form, so mark the right amount.
The Commission's bond form allows claims brought within eight years after the event giving rise to the cause of action.
