A Class B contractor wants to bid on a $750,000 commercial project. What must the contractor do to be eligible?
Correct Answer
A) Upgrade to Class A license
Class B contractors are limited to contracts up to $500,000. To bid on a $750,000 project, the contractor must upgrade to a Class A license.
Why This Is the Correct Answer
In South Carolina, Class B contractors are licensed only for contracts up to $500,000. A $750,000 project exceeds that limit by $250,000. The only way to legally bid on a project of this size is to obtain a Class A license, which has no upper project value limit. There is no waiver, partnership workaround, or bonding mechanism that substitutes for holding the appropriate license classification.
Why the Other Options Are Wrong
Option B: Apply for project-specific waiver
South Carolina does not offer project-specific waivers to bypass license classification limits. License classes are tied to demonstrated financial capacity, experience, and examination — they cannot be circumvented with a one-time project waiver.
Option C: Partner with Class A contractor
Partnering with a Class A contractor does not transfer Class A bidding authority to a Class B contractor. The entity holding the contract must hold the appropriate license. A Class B contractor cannot bid on a Class A project simply by subcontracting with or teaming alongside a Class A licensee.
Option D: Obtain additional bonding
Additional bonding increases the contractor's financial assurance to the project owner but does not change the contractor's license classification or expand the project value limits tied to that classification. Bonding and licensing are separate regulatory requirements.
Memory Technique
South Carolina classes: Class B = 'Below $500K,' Class A = 'Above anything.' To remember the $500K cap: 'B is for Below half a million.' When a project crosses $500K, you need an A-level license — no shortcuts, no partnerships, no extra bonds.
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