How much does a residential builder bond cost in South Carolina?
Registered residential specialty contractors must post a $5,000 bond, which can be instantly issued and costs $100. Licensed residential specialty contractors must post a $10,000 bond, which we can instantly issued and costs $200. Residential builders or contractors with a certificate of authorization must post a bond for $15,000, which can be instantly issued and costs $300. Simply click Buy Now below to purchase the bond you need instantly online using our secure bond checkout. It only takes a few minutes to be on your way to getting bonded as a residential builder in South Carolina.
| Bond Type | Bond Amount | Cost | |
|---|---|---|---|
| $5,000 Residential Builder Bond Registered residential specialty contractor | $5,000 | $100 | |
| $10,000 Residential Builder Bond Licensed residential specialty contractor | $10,000 | $200 | |
| $15,000 Residential Builder Bond Residential builder/certificate of authorization | $15,000 | $300 |
What does a residential builder bond do?
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.
Why is a residential builder bond required?
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 beginning work.
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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 are the terms of a residential builder bond?
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 your Residential Specialty Contractor Registration Application
- Submit three reference letters from individuals that know your work
- Pay the required license fee
- $100 if the registration application is received on or between July 1, odd-numbered year to June 30, even-numbered year
- $50 if the registration application is received on or between July 1, even-numbered year to June 30, odd-numbered year
- Submit $5,00 surety bond if work exceeds $5,000
All residential specialty contractor licenses expire on June 30th of every odd-numbered year.
Applicants who would like to become licensed as either a plumber, electrician or HVAC specialty contractor must take the following steps:
- File the required license application
- Submit $100 application processing fee
- Send a letter on company letterhead from your employer showing one year of experience
- Pass PSI examination
- Pay the required license fee
- All licenses require a Certified Check or Money Order for the $100 application processing fee made payable to SCRBC
- 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 the required license fee
- $160 if the license is issued on or between July 1, even-numbered year to June 30, odd-numbered year
- $80 if the license is issued on or between July 1, odd-numbered year to June 30, even-numbered year
- Post the required $5,000 surety bond
Home builder licenses must be renewed License renew every even-numbered year.
Additional Resources
Residential Builder License Surety Bond Form
South carolina Residential Builders Commission
Residential Builder Frequently Asked Questions
Residential Builder Licensing Information