What is the South Carolina Residential Builder/Certificate of Authorization Bond?
The South Carolina Residential Builder/Certificate of Authorization Bond is a surety bond that protects the public from irresponsible or fraudulent behavior conducted by licensed residential builders. If the licensed contractor fails to follow licensing regulations and an individual (e.g., a homeowner) suffers injury, the injured party can recover damages up to $15,000 by making a claim on the contractor’s bond.
Injury could include literal damage to property, physical injuries, or financial losses due to an improper or dangerous build. For instance, if the builder does not complete the project on time, within budget, or if there are defects in the workmanship, the bond can cover losses suffered by the homeowner up to the bond amount. The licensed builder is financially responsible for reimbursing the surety company for any valid claims that get paid out.
Who needs a Certificate of Authorization or Residential Builder Bond?
Any individual or business that wants to operate as a residential builder in the state of South Carolina must have a Residential Builder or Certificate of Authorization Bond. This requirement applies to new construction contracts, remodeling projects, and all types of residential buildings (e.g., single-family homes, multi-family dwellings, and townhouses).
The state requires all residential builder license applicants to post a surety bond with a bond amount of at least $15,000 as a part of the licensing process. The South Carolina Residential Builders Commission will not issue you a license without an active surety bond.
How much does a Residential Builder Bond cost in South Carolina?
Unlike many other contractor license bonds, the Residential Builder Bond for South Carolina does not require a credit check. Instead, you can purchase your $15,000 builder’s bond directly on our website for a standard rate of $300.
The obligee for this bond is the South Carolina Residential Builders Commission. The Commission regulates and monitors the licensing of residential builders in the state. Their contact information is below:
South Carolina Department of Labor, Licensing and Regulation
South Carolina Residential Builders Commission
110 Centerview Dr.
Columbia, SC 29210
Phone: (803) 896-4696
How to get a South Carolina Residential Builder/Certificate of Authorization Bond
Surety bonding can be complex, but our team takes pride in making it as simple as possible to get started. Just fill out the short application for your builder’s bond, make your payment, and we will mail the original bond to you so you can file it with the obligee.
Have questions? Reach out to our surety experts at firstname.lastname@example.org, or give us a call at 1-866-546-4605 for assistance!
Frequently asked questions
To become a licensed residential builder in South Carolina, you must complete the following:
– Have at least one year of building-related work experience within the past five years
– Submit a Residential Home Builders License Application to the SC Residential Builders Commission
– Pay all application processing fees
– Pass the PSI exam
– Obtain a $15,000 SC Residential Builder Bond and file it with the South Carolina Residential Builders Commission
– Pay the appropriate licensing fees (vary depending on when your license is issued)
The South Carolina Builders License exam is a comprehensive, two-part test about all aspects of residential construction. The first part covers technical information, while the second covers business management and relevant laws. These exams include questions on building codes, permits, inspections, general contractor knowledge, procedures, and more. Home builders must score at least 70% on the Technical Exam and 68% on the Business Management and Law Exam to pass. Passing this exam is a licensing requirement.
Once you’ve purchased your South Carolina Residential Builder bond, we will ship the original bond to you. Once you get your original bond, you may need to sign it before filing it with the South Carolina Residential Builders Commission. Most obligees require you to file the original bond, not a copy. However, always check your obligee’s filing requirements before shipping out your bond.