How to Become a General Contractor in South Carolina

  • Posted by Melanie Klag
    How to Become a General Contractor in South Carolina

    Becoming a general contractor in South Carolina is the first step toward building a reputable and thriving business in the state. According to the Associated General Contractors of America, the South Carolina construction industry recognized a 12% increase in construction employment between February 2020 and August 2023, and a 5% increase between August 2023 and 2024. The Bureau of Labor Statistics forecasts a 9% growth for all construction management-related positions, making this an excellent time to pursue your license in South Carolina. 

    A contractor license is required for anyone who bids on or accepts commercial construction projects with a total value of construction costs over $10,000.  

    The state issues general and mechanical contractor licenses. General contractors manage the entire construction project, while mechanical contractors specialize in specific trades related to mechanical systems, such as heating ventilation and air conditioning (HVAC), plumbing, electrical, and refrigeration. 

    This article explains the different license types and the process of becoming a licensed general contractor in the state of South Carolina. 

    South Carolina Contractor Licensing Basics 

    The South Carolina Contractor’s License Board issues general and mechanical contractor licenses in the state. Limits per bid and job are based on the type of license and group number. The group number is determined by evaluating the financial statement or surety bond of the person holding the license at the time of application or renewal. 

    The Residential Builders Commission issues residential and specialty contractor licenses. These licenses restrict work to residential structures under three stories with fewer than 16 units. Specialty contractor licenses are issued for tradespersons such as plumbers, electricians, HVAC, roofers, masons, and painters. 

    Working without a license can have serious consequences, including fines, board hearing, and inability to become licensed in the future. That is in addition to having no rights to place a lien on the property for payment.  

    Types of Contractor Licenses in South Carolina  

    There are four license types issued in South Carolina: general contractor, mechanical contractor, residential building contractor, and specialty contractor. The Contractor’s Licensing Board issues general and mechanical contractor licenses. The Residential Builders Commission issues the other two.  

    General Contractor and Mechanical Contractor License Requirements  

    With this license, you are permitted to work on residential and commercial projects where the total construction cost exceeds $10,000.  

    Applicants must designate a Primary Qualifying Party (PQP or QP). The QP is the primary person responsible for directing and reviewing work performed by the applicant. You can list yourself as the QP.   

    The QP must pass the technical exam and the Business Management and Law exam They are also required to have two years of experience within the last five years.  

    General and mechanical contractors must meet either net worth/total equity requirements or working capital requirements before receiving their license. The board assigns a licensing group based on your financial statement or surety bond. For example, general contractors assigned to Group #1 are restricted to total job costs of less than $100,000 compared to those in Group #5, where the job costs are unlimited.  

    General and mechanical contractor licenses are renewed every two years before October 31st of even years. 

    Residential Contractor License  

    The Residential Builders Commission issues residential contractor licenses. 

    • Residential contractors construct, supervise, and hire specialty contractors to construct, repair, or improve residential structures less than three stores with fewer than 16 units. 
    • A residential contractor license is required for any work valued over $500. A surety bond of $15,000 is required for licensing. 
    • You must have one year of experience and three references letters attesting to your character, skills, and experience. Experience must include estimating, plan reading, bidding, and residential building.
    • You are required to pass the Residential Builders Exam and the Business Management and Law exams. 
    • Residential contractor licenses are renewed every two years before June 30th of even years. 

    Specialty Contractor License 

    Specialty contractor licenses are issued for specific trades by the Residential Builders Commission.  

    • Specialty contractors are independent contractors who contract with licensed residential builders, general contractors, or individual homeowners. 
    • Licenses are issued for trades such as siding, insulation, roofing, floor covering, masonry, drywall, carpenters, painters, and solar panel installation.
    • A specialty contractor license is required for any work exceeding $500. If work exceeds $5,000, a surety bond is required.
    • Specialty contractors cannot build homes or additions, including enclosed porches. 
    • To get a trade license, you must have one year of related work experience and submit three reference letters that reflect your character, skills, and knowledge in the chosen area. No exam is required.
    • At licensure or renewal, specialty contractors can list three trades on their registration. If you would like to work in more than three areas, you’re required to become a licensed builder or general contractor. 
    • Specialty licenses are renewed every two years before June 30th of odd numbered years. 

    Steps to Get Your General Contractor License in South Carolina 

    There are essentially four steps to getting licensed: examination, application, securing a group number, and obtaining insurance. 

    Examination 

    Before you can apply for your license, you must schedule and pass the technical exam and the business and law exam for South Carolina. PSI Services proctors the tests. Scheduling and fees are paid directly to PSI Services.  

    South Carolina requires that you have two years of documented experience within the previous five years. Passing the exam will not exempt you from the experience requirements. It’s important that you have the required experience before taking the exam. 

    Application 

    You must apply to the Contractor’s Licensing Board. This includes paying the licensing fee ($350) and assigning a QP. You will also be required to document your experience and financial means. Additional requirements may include verification to conduct business in South Carolina from the South Carolina Secretary of State and insurance documentation.  

    Secure a Group Number  

    In South Carolina, limits per bid and job are based on your financial means or surety bond. A financial statement or surety bond is required as part of the application process. You will be assigned a group number between one and five, permitting you to bid on or perform contracts under $100,000, $400,000, $1M, $3M, or unlimited for general contractors.  

    The bid and job limitations are substantially less for mechanical contractors.  

    Insurance 

    Worker’s Compensation Insurance and general liability insurance are required. Worker’s comp is mandatory for full-time, part-time, and seasonal employees. General liability insurance minimums in South Carolina are $1M per occurrence and $2M aggregate.  

    If you have company vehicles, those are required to be insured. Lastly, the South Carolina Contractor’s Licensing Board may require a Certificate of Liability Insurance with a minimum of $100,000 coverage listing the board as the certificate holder. 

    Local licenses may also be required but are generally not part of the application process. 

    Taking the General Contractor License Exam  

    A passing score of 70% or better is required on the technical examination for each classification or subclassification of licensure applied for and on the Business Management and Law exam. The exams are multiple choice and timed.  

    The National NASCLA Commercial Builder Exam is approved in South Carolina for general contractors. The NASCLA open-book exam has 115 questions. You will have a time limit of 330 minutes to complete the exam.  

    Questions come from 12 categories:  

    • General Requirements (25 items)
    • Site Construction (15 items)
    • Concrete (6 items)
    • Masonry (4 items)
    • Metals (6 items)
    • Wood (5 items)
    • Thermal and Moisture Protection (5 items)
    • Doors, Windows, and Glazing (4 items)
    • Electrical Systems (4 items)
    • Procurement and Contracting Requirements (31 items) 

    The South Carolina Business Management and Law exam has 50 questions. You need to correctly answer 35 to pass within the 125-minute time limit. Thisis NOT an open-book exam. 

    • Business Management (2 items)
    • Estimating and Bidding (12 items)  
    • Contracts and Agreements (12 items)
    • Project Management (5 items)
    • Insurance and Bonding (2 items)
    • Safety Recordkeeping and Reporting (1 items)
    • Labor Laws and Employment Regulations (3 items)
    • Financial Management (7 items)
    • Tax Laws (3 items)
    • Liens (3 items)
    • Environmental Laws and Regulations (2 items) 

    Most applicants use exam preparation courses to prepare. Contractor Training Center South Carolina construction exam prep and South Carolina Business Law Exam Prep courses include practice exam simulators, exam-ready tabbed and highlighted references you can bring with you to the NASCLA exam, live webinars and classes, and biweekly instructor office hours.  

    Begin Your Contracting Career Today 

    Securing a general contractor's license in South Carolina paves the way to a highly rewarding career. It allows you to differentiate your services, build credibility, and earn the trust of your customers while legally bidding on lucrative construction projects.  

    At Contractor Training Center, we specialize in helping South Carolina contractors ace their tests and secure state licensing on the first try—we have a 90% first-time pass rate. When you’re ready, we’re here to help you breeze through the licensing process! 

    Back to blog

    Leave a comment

    Please note, comments need to be approved before they are published.