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Statutory Changes to General/Mechanical Contractor License Groups

By On October 7, 2016 |

South Carolina General and Mechanical licenses are classified into five respective groups.  Each group defines the contractor’s financial limitations for bidding and performing general or mechanical construction.  Effective June 3, 2016, the South Carolina Legislature has enacted changes to the financial limitations and net worth requirements for each license group.  A summary of the changes to S.C. Code 40-11-260 is as follows:

General Contractors:

Group Former Statute New Statute
1 Can bid and perform job not to exceed $30,000Required net worth – $6,000 Can bid and perform job not to exceed $50,000Required net worth – $10,000
2 Can bid and perform job not to exceed $100,000

Required net worth – $20,000

Can bid and perform job not to exceed $200,000Required net worth – $40,000
3 Can bid and perform job not to exceed $350,000

Required net worth – $70,000

Can bid and perform job not to exceed $500,000

Required net worth – $100,000

4 Can bid and perform job not to exceed $750,000

Required net worth – $150,000

Can bid and perform job not to exceed $1,500,000

Required net worth – $175,000

5 Can bid and perform jobs of unlimited amountRequired net worth – $250,000 No Change

 

Mechanical Contractors:

Group Former Statute New Statute
1 Can bid and perform job not to exceed $17,500Required net worth – $3,500 No Change
2 Can bid and perform job not to exceed $30,000Required net worth – $6,000 Can bid and perform job not to exceed $50,000Required net worth – $10,000
3 Can bid and perform job not to exceed $50,000

Required net worth – $10,000

Can bid and perform job not to exceed $100,000

Required net worth – $20,000

4 Can bid and perform job not to exceed $125,000Required net worth – $25,000 Can bid and perform job not to exceed $200,000

Required net worth – $40,000

5 Can bid and perform jobs of unlimited amountRequired net worth – $100,000 Required Net Worth $200,000

Contractors should be aware of these new group limitations and financial requirements and be prepared to provide financial statements showing the new required net worth when apply for new licenses or renew their current licenses.

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