According to SC Title 40-11, what is the minimum net worth requirement for a Tier 4 general contractor license?
Correct Answer
B) $500,000
Under SC Title 40-11, Tier 4 general contractors must maintain a minimum net worth of $500,000 to qualify for and maintain their license.
Why This Is the Correct Answer
SC Title 40-11 establishes that Tier 4 general contractors — who can bid on the largest public and private projects — must demonstrate a minimum net worth of $500,000 to qualify for and maintain licensure. This financial threshold reflects the scale of projects at this tier.
Why the Other Options Are Wrong
Option A: $150,000
$150,000 is a net worth threshold associated with lower tiers (such as Tier 2), not Tier 4.
Option C: $750,000
$750,000 exceeds the Tier 4 minimum. There is no SC contractor tier that requires $750,000 as a minimum net worth.
Option D: $300,000
$300,000 corresponds to an intermediate tier requirement, not Tier 4. It may reflect Tier 3 thresholds.
Memory Technique
Tier 4 = $500K. Use the progression: Tier 1 ($25K) → Tier 2 ($150K) → Tier 3 ($300K) → Tier 4 ($500K). Each tier steps up significantly — Tier 4 is a half-million dollar commitment.
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