A residential builder bond in South Carolina is used to ensure the principal, being the residential builder or specialty contractor, works in compliance with all state and federal laws. If they do not abide by the terms set by the bond, the bond can be subject to claims, which will cover all damages up to the bond's penal sum.
According to SC Code § 40-59-20 (2016), a residential builder is one who constructs, superintends, repairs, or improves a residential building or structure, which is not over three floors in height and has no more than sixteen units in a single apartment building. In addition, this building must have a cost of undertaking that is greater than $5,000.
The South Carolina Residential Builders Commission requires residential builder bonds for residential builders working on projects worth at least $5,000. If the surety wishes to terminate the bond, the surety must provide 30 days' notice prior to the effective cancellation date to the Commission. The surety will still be responsible for any claims that have been filed against the bond during these 30 days.
South Carolina Residential Builder Bond amounts include the following.
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The South Carolina Residential Builders Commission requires contractors to have this type of bond to work on projects worth at least $5,000. Registered residential specialty contractors must post a $5,000 bond, licensed residential specialty contractors must post a $10,000 bond, and residential builds or contractors with a certificate of authorization must post a bond for $15,000. A licensed residential specialty contractor may be an HVAC technician, electrician, or plumber, while a registered specialty contractor includes vinyl and aluminum siding installers, roofers, masons, and more. The premium rates of these bonds in South Carolina are dependent on the builder's credit score. Contact us for a free quote so you will know the exact amount you will be paying.
All residential builders must be licensed and registered by the South Carolina Builders Commission. To become licensed, they must pass the South Carolina Business and Law exam as well as the South Carolina Residential Building exam. In addition, all applicants must submit their credit scores with their applications. The contractor must also show one year of experience under the supervision of a licensed residential builder or other appropriately licensed individuals.
The South Carolina Builders Commission requires residential builders and residential specialty contractors working on projects more than $5,000 to file a surety bond before they may begin working. This bond is available to help ensure that the principal, being the builder or contractor, is working in compliance with state and federal laws, specifically SC Code § 40-59-20 (2016). In the event of a claim against this bond, the surety will cover all damages, which requires the principal to reimburse the surety for all damages paid out in a timely manner.
Regardless of the duration of the initial or renewal license term, each license year for this bond is a twelve-month period commencing on July 1st and ending on June 30th of the following year. When applying for a Residential Builder license, the cost is $160 if the license is issued on or between July 1st and June 30th of an even-numbered year and $80 if it is granted on or between July 1st of an odd-numbered year and June 30th of an even-numbered year. Because the bond will not be in force for a full year the first year, the cost will be prorated if not acquired on July 1st.
| Type | Bond | Obligee | Bond Amount |
|---|
| License | South Carolina Residential Builder Bond Licensed residential specialty contractor | South Carolina Residential Builders Commission,
State of South Carolina
|
$10,000 | Click Here To Get Bonded |
| License | South Carolina Residential Builder Bond Registered residential specialty contractor | South Carolina Residential Builders Commission,
State of South Carolina
|
$5,000 | Click Here To Get Bonded |
| License | South Carolina Residential Builder Bond Residential builder/certificate of authorization | South Carolina Residential Builders Commission,
State of South Carolina
|
$15,000 | Click Here To Get Bonded |