Becoming a contractor in South Carolina requires you to apply for your contractor’s license in the state. To get a license, you’ll need to have 2 years of experience, pass an official exam, hold general liability insurance, submit a financial statement or surety bond, register your business (if applicable), and complete an application packet.
This article will dive further into the details of how to become a contractor in South Carolina, including information on:
- General contractor & mechanical contractor licenses
- Construction manager registration
- Residential contractor registration
Do You Need a Contractor’s License in South Carolina?
South Carolina requires general contractors and mechanical contractors to be licensed if working on projects worth $5,000 or more, including labor and materials.
There are separate requirements for burglar and fire alarm contractors and fire sprinkler contractors. All contractor licenses are issued by the SC Contractor’s Licensing Board.
For those working only on residential work, you will need to be registered with the Residential Builders Commission of SC.
The SC Board also provides a list of work that does not require any type of license.
SC cities and counties may also have additional rules, fees, and regulations when it comes to completing contractor work, so check with your local Board after receiving your state license.
You can use this form to search for your city, call the number listed, and ask to speak to the Business License or Business Permit Department. If you don’t live within city limits, instead find your county and follow the same procedure.
General Contractor & Mechanical Contractors in SC
Both general contractors (GCs) and mechanical contractors can apply for their contractor’s licenses by examination or reciprocity.
Applying for a License through Examination
To apply for your contractor’s license through examination, you’ll need to pass a PSI exam or NASCLA exam before completing your application. This can be done by either the applicant or a designated qualifying party who is a full-time employee of the applying contracting business.
PSI contractor exams are given to those who have at least 2 years’ experience within the last 5 years in the field. Experience must be documented and verifiable. Check out the PSI Candidate Bulletin for information regarding study materials and exam components for all SC contractors and subcontractors.
See here for more information on NASCLA contractor exams. If you take the NASCLA exam, you’ll also need to take and pass the SC Business Management and Law for Commercial Contractors Exam through PSI.
Once you’ve taken and passed the exam, you can apply for your license with the state. Your application will need to include:
- The completed application packet with all notarized signatures
- Your passing PSI exam and/or NASCLA reports
- A financial statement or surety bond
- There are distinct surety bond forms for general contractors and mechanical contractors
- How you prepare your financial statement depends on your contractor group, which is determined by your net worth (see the application, pages 1 and 4)
- The prorated licensing fee (see page 3 of the application)
- A copy of your business registration with the Secretary of State, if applying as a corporation, partnership, or LLC
Applying for a License through Reciprocity
If you have a comparable license from another state, you may be exempt from one of the SC contractor’s exams. Read through the full list of reciprocal licenses here.
If eligible, you will need to request a Letter of Verification and/or Examination Waiver form from the board. You will still be required to pass the PSI Business Management and Law exam before applying for a license through reciprocity.
The application form and procedure are the same as for those applying through examination.
Renewals
All GC and mechanical contractor licenses expire on October 31 of even-numbered years. You can renew online. Renewals will need to show proof of general liability insurance, submit an updated financial statement, and pay a renewal fee with the application.
SC Construction Manager Registration
Construction managers in SC are licensed GCs, mechanical contractors, architects, or engineers who provide construction management services. These contractors may organize teams, subcontractors, other employees, and materials to develop a plan, monitor progress, and resolve issues during construction projects.
Applicants may be licensed contractors themselves or be designated as the qualified party by a contracting business.
Registration Process
Construction managers must complete a separate application that includes:
- A financial statement depending on your group number (see page 3 of the application)
- Group numbers depend on your net worth and they determine the price limits of the contracts you can undertake
- Your business information
- A $10 registration fee
- An affidavit of lawful presence in the U.S.
- Qualifying party information, including license numbers.
On the application, you’ll also choose between various classifications and sub-classifications depending on the type of contracting work you plan to complete.
Residential Contractors in South Carolina
For contractors who solely work on residential properties, you will need to be licensed and/or registered by the Residential Builders Commission. They offer licenses for electrical, HVAC, and plumbing specialty contractors, as well as a Residential Home Builders License. They also offer a general Residential Specialty Contractor Registration application, which we discuss below.
Residential Specialty Contractor Registration
Residential specialty contractors are any independent contractors who work with a licensed GC, residential builder, or property owner. Electrical, HVAC, and plumbing contractors have separate applications.
Residential specialty contractor classifications include:
- Vinyl/aluminum siding
- Floor covering
- Carpenter
- Insulation installer
- Masonry
- Stucco installer
- Roofing
- Drywall installer
- Painter/wallpaper
These specialty residential contractors must complete an application to be registered by the Commission. With the application, you’ll need to include:
- The prorated fee (see page 1 of the application)
- A copy of a government-issued ID
- A copy of your Social Security card
- The Notarized Verification of Lawful Presence form
- Background check information
- 3 reference letters that describe your work and character in the contracting realm
- Your business information, if applicable
- If you plan to take on projects valued at over $5,000, you’ll need a surety bond by an approved company
Specialty registration licenses expire on June 30th of every odd-numbered year. You can find renewal information here.
