How much does a residential builder bond cost in South Carolina?
The South Carolina Residential Builders Commission mandates residential builders and residential specialty contractors working on projects more than $5,000 to file a surety bond before commencing work.
Registered residential specialty contractors must post a $5,000 bond, which can be instantly issued for $100. Licensed residential specialty contractors must post a $10,000 bond, which we can instantly issue for $200. Residential builders or contractors with a certificate of authorization must post a bond for $15,000, which can be instantly issued for $300. Check the table below for more information.
Residential builder bonds can be subject to underwriting if you so choose. The best way to find out exactly how much you’ll pay for your residential builder bond is to submit a bond request now!
| Bond Type | Bond Amount | Cost* | |
|---|---|---|---|
| $5,000 Residential Builder Bond Registered residential specialty contractor | $5,000 | $100 Instant Issue, No Credit Check | Buy Now |
| $10,000 Residential Builder Bond Licensed residential specialty contractor | $10,000 |
$200 Instant Issue, No Credit Check
(1% rate available subject to underwriting) |
Buy Now |
| $15,000 Residential Builder Bond Residential builder/certificate of authorization | $15,000 |
$300 Instant Issue, No Credit Check
(1% rate available subject to underwriting) |
Buy Now |
Want quick, accurate and helpful contractor bonding services? Call 1 (800) 308-4358 to speak with a surety expert or click here to get started.
Why do I need this bond?
Residential builder bonds exist to ensure the principal (residential builder or specialty contractor) complies with all state and federal laws, specifically Title 40 Chapter 59 of the South Carolina Code of Laws and the International Residential Code. Should the principal violate any of the bond’s terms, the bond can be subject to claims filed against it.
In the event of a valid claim, the surety will cover for all damages up to the penal sum of the bond. The indemnification agreement requires the principal to then reimburse the surety for all damages paid out in a timely manner.
What is the fine print?
Residential builder bonds are required by the South Carolina Residential Builders Commission for contractors working on projects worth at least $5,000. If the surety wishes to terminate this bond, it must do so by giving 30 days’ notice prior to the effective cancellation date to the Commission. The surety remains liable for all claims filed against this bond during that time.
How to become a residential builder in South Carolina
Contractors must obtain proper licensing and registration prior to engaging in business. Applicants who would like to become registered as a specialty contractor must take the following steps:
- file Residential Specialty Contractor Registration Application
- submit 3 reference letters from individuals that know your work
- include necessary fees
- submit surety bond if work exceeds $5,000
Applicants who would like to become licensed as either a plumber, electrician or HVAC specialty contractor must take the following steps:
- file license application
- submit $100 application processing fee
- send a letter on company letterhead from your employer showing 1 year of experience
- pass PSI examination
- pay license fee
- submit surety bond if work exceeds $5,000
Applicants for home builder licenses must do the following:
- file Residential Home Builders License Application
- submit $100 application processing fee
- submit affidavit proving one year of experience
- pass PSI examination
- pay $160 license fee
- submit surety bond
Home builder licenses must be renewed every 2 years. For more information on licensing, check out the “Important Links” section below.
To jumpstart your bonding needs, fill out a bond request form online.
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Important Links
South Carolina Residential Builders Commission
South Carolina Residential Builders Commission Forms
South Carolina Residential Builders Commission Frequently Asked Questions
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