Calculate the required surety bond amount for a Tier 1 contractor in South Carolina:
Correct Answer
B) $7,500
Tier 1 contractors in SC must maintain a surety bond of $7,500 to obtain and maintain their license.
Why This Is the Correct Answer
South Carolina requires Tier 1 contractors — those performing smaller-scale residential and commercial work — to maintain a surety bond of $7,500. This bond protects clients and subcontractors against contractor default at the entry-level tier.
Why the Other Options Are Wrong
Option A: $12,500
$12,500 is not a standard surety bond amount for any SC contractor tier. It is a plausible-looking number placed between the correct answer and higher amounts to confuse candidates who are unsure of the exact figure.
Option C: $15,000
$15,000 exceeds the Tier 1 bond requirement. This might correspond to a higher tier's bond amount, but for Tier 1 — the entry-level license — SC requires only $7,500.
Option D: $10,000
$10,000 is a round number that seems reasonable but does not match SC's statutory bond requirement for Tier 1. This distractor exploits the tendency to guess a round number when the exact figure is unknown.
Memory Technique
Think '$7,500 = Tier 1's seven-and-a-half thousand.' The number 1 in Tier 1 and the '7' in $7,500 are both low numbers, signaling the entry-level nature of this bond amount. Contrast it with Tier IV's much larger bond.
More South Carolina Questions
What is the maximum contract value a Tier 1 residential contractor can undertake in South Carolina?
Under South Carolina law, a contractor discovers a material defect in their work 6 months after project completion. The owner demands immediate correction. What is the contractor's legal obligation?
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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What is the maximum project value a Tier 1 contractor can undertake in South Carolina?
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