A contractor holds a Class C license allowing projects up to $200,000. Due to change orders, a project increases from $185,000 to $235,000. What action is required?
Correct Answer
B) Obtain Class B license before proceeding
South Carolina requires contractors to hold appropriate license classification for actual project value, necessitating a Class B upgrade for projects over $200,000.
Why This Is the Correct Answer
South Carolina ties license classification to project dollar value — Class C allows up to $200,000. When change orders push a project beyond that threshold to $235,000, the contractor must upgrade to a Class B license before proceeding with the additional work. Continuing without the appropriate license is a violation of SC licensing law.
Why the Other Options Are Wrong
Option A: Continue work under existing license
Continuing under the existing Class C license is not permissible once the project value exceeds $200,000. South Carolina requires the contractor to hold the license classification corresponding to the actual (not originally contracted) project value. The change orders make the project a Class B-level project.
Option C: Transfer project to a properly licensed contractor
Transferring the project to another contractor is not required by South Carolina law. The original contractor can retain the project by upgrading their own license to Class B. Transfer would be one practical option but is not the legal requirement.
Option D: File a project notification with the licensing board
Filing a notification with the licensing board is not the legal remedy specified by South Carolina law for this situation. The contractor must take active steps to become properly licensed (upgrade to Class B), not simply notify the board while continuing to work under an insufficient license.
Memory Technique
Think of SC license classes as speed limits — if your project speeds up past $200,000, you need to upgrade your license 'speed rating' to Class B before you can go faster. You cannot exceed your license limit just because you started under it.
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