A Tier III contractor wants to bid on a project worth $750,000. What must they do to legally perform this work?
Correct Answer
B) Upgrade to Tier IV license
Tier III contractors are limited to $500,000 contracts, so they must upgrade to Tier IV to handle a $750,000 project.
Why This Is the Correct Answer
SC Tier III contractors are capped at $500,000 per contract. A $750,000 project exceeds this limit, so the contractor must upgrade to Tier IV, which authorizes larger project values. This is a statutory requirement, not a matter of bonding or approvals.
Why the Other Options Are Wrong
Option A: Obtain additional bonding
Additional bonding does not expand a contractor's authorized project limit. The tier cap is a licensing restriction; only upgrading the license tier removes that restriction.
Option C: Get special approval from the board
There is no 'special approval' mechanism in SC law allowing a Tier III contractor to take on projects beyond the $500,000 cap without upgrading their license tier.
Option D: Partner with another contractor
Partnering with another Tier III contractor does not combine their individual limits. Each contracting entity must independently hold the appropriate tier for the work they are directly contracting to perform.
Memory Technique
Tier III tops out at $500K — think 'three tiers up to half a million.' The next rung (Tier IV) unlocks the $750K+ range. When the price climbs past $500K, climb to Tier IV.
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