According to SC Title 40-11, what is the minimum net worth requirement for a Tier 3 general contractor?
Correct Answer
D) $150,000
Under SC Title 40-11, Tier 3 general contractors must maintain a minimum net worth of $150,000.
Why This Is the Correct Answer
South Carolina Title 40-11 establishes tiered licensing for contractors based on project size and financial capacity. Tier 3 contractors, authorized for the largest projects, must demonstrate a minimum net worth of $150,000 to the South Carolina Contractors' Licensing Board.
Why the Other Options Are Wrong
Option A: $100,000
$100,000 is not the Tier 3 threshold. It may approximate requirements for lower tiers or other license categories, but it falls short of the Tier 3 standard, which reflects the higher financial risk of large commercial projects.
Option B: $200,000
$200,000 exceeds the Tier 3 requirement. This figure may seem reasonable for a high-tier license but is not the statutory amount. Selecting higher numbers is a common test trap when candidates are unsure of the exact figure.
Option C: $50,000
$50,000 is far below the Tier 3 requirement and more consistent with requirements for lower license tiers or specialty contractors. Tier 3 authorizes the highest project values and thus requires greater financial strength.
Memory Technique
Associate Tier 3 with '$150,000 net worth' by thinking: Tier 3 is the top tier, and $150K is the '3' in the middle — between $100K and $200K. Or use the mnemonic: 'Three-tier, one-fifty net.'
More South Carolina Questions
What is the maximum contract value a Tier 1 residential contractor can undertake in South Carolina?
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A contractor has 15 employees and annual payroll of $780,000. The workers compensation rate is $4.25 per $100 of payroll. What is the annual premium?
According to SC building codes, what is the maximum allowable deflection for a residential floor joist with a 16-foot span under live load?
A subcontractor completes $25,000 of electrical work but is not paid by the general contractor. The general contractor was paid by the owner. What is the subcontractor's lien priority against the property?
A contractor receives a stop work order from the building official. Work continues for 3 additional days before stopping. What penalty applies per South Carolina building codes?
Under South Carolina workers compensation law, which of the following employees would be exempt from coverage requirements?
Under South Carolina contractor licensing law, how many hours of continuing education are required annually for license renewal?
A Class B contractor wants to bid on a $750,000 commercial project. What must the contractor do to be eligible?
A contractor's license expires on June 30th. They submit renewal application and fees on July 15th. What additional penalty must they pay?
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