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South Carolina Contractors License Bond

The contractor license bond is among the most sought types of surety bonds. These surety bonds are an agreement between the surety, the contractor, and the state in which the contractor is applying for a license—for example, South Carolina. South Carolina contractor license bonds generate public trust for contractors while protecting the public by deterring illegal actions and unethical behaviors by contractors.

The contractor license bond is like a promise, guaranteeing the state that a contractor will always work to high professional and ethical standards. Contractor license bonds also protect the public. They prove that your company is reliable, and that the state trusts you to provide professional contractor services. People who work with bonded contractors have a sense of security, because they know they can file for financial relief if they are affected by incomplete work or poor workmanship by the licensed contractor.

What Is a Contractor License Bond and What Does It Cover?

A contractor license bond is a guarantee that comes with a monetary consequence. The bond demonstrates the contractor's promise to follow standards and state regulations when completing a job. If the contractor fails, either by not following applicable regulations, or by not finishing the job, the client can claim against the bond. At that point, if the claim is found to be valid, the surety pays the claim and then seeks compensation in return the contractor.

Although protecting the public is the main reason for the contractor license bond, it is also an essential tool for contractors. It lets potential clients know that the contractor can be trusted, and will work hard to resolve problems that may arise. This builds confidence with customers, who feel more at ease hiring a bonded contractor rather than someone who is unlicensed.

How to Get a Contractor License Bond in South Carolina

Contractors can get their South Carolina contractor license bonds through surety bond businesses who are licensed through the South Carolina Department of Labor, Licensing and Regulation. As long as a contractor remains licensed, the bond must be renewed. In general, getting the bond is easy, involving a simple surety bond application, a credit check and payment of the premium. The whole process can take as little as a day.

In the State of South Carolina, general, manufactured housing, mechanical, and specialty contractors must all be licensed to work. The general/mechanical contractor license is required for anyone who does commercial construction projects worth more than $5,000. Manufactured housing contractors install and fix manufactured or mobile homes, and there is more than one sub-variety of manufactured housing contractor. Specialty contractors do any kind of construction, improvements, and repairs worth over $200; this may include electricians, HVAC contractors, and plumbers. Specialty contractors cannot subcontract under South Carolina law.

The Cost of South Carolina Contractor License Bonds

South Carolina contractor license bonds are individually underwritten, this means that things like credit scores and work history figure into the cost of the bond. For this reason, the cost changes from applicant to applicant. Contractors with stronger credit scores can anticipate lower bond costs than contractors with challenged credit. In general, for all jobs over $5,000, the contractor must have a bond of $10,000. The cost of the bond typically ranges from 1.5% to 6% of the required bond amount based on the credit strength and other applicant considerations.

South Carolina Contractor License Bonds by Viking Bond Service

Viking Bond Service can handle your South Carolina contractor license bond needs. We've been helping our South Carolina clients get the surety bond they need for nearly 20 years, keeping them compliant with South Carolina bonding rules. Our simple, fast South Carolina contractor license bonding process gets you the bond you need, and saves you the headache. Our experienced team of licensed surety bond professionals can help you with your South Carolina contractor license bond online quote request now.