Under SC law, what happens if a contractor performs work without a required license?
Correct Answer
C) The contractor cannot collect payment for the work
SC law prohibits unlicensed contractors from collecting payment for work that requires a license.
Why This Is the Correct Answer
South Carolina law is explicit: an unlicensed contractor cannot enforce a contract for work that requires a license and cannot collect payment for that work. The courts will not assist an unlicensed contractor in recovering compensation. This rule is designed to protect consumers and incentivize proper licensing compliance.
Why the Other Options Are Wrong
Option A: The contractor receives a warning for the first offense
SC law does not provide a 'warning for the first offense' safe harbor for unlicensed contracting. The inability to collect payment applies from the first violation, not after a warning period. Warnings may be issued for other licensing infractions but not as a substitute for the payment prohibition.
Option B: The work must be inspected by a licensed contractor
Requiring inspection by a licensed contractor is not the statutory consequence for unlicensed work. While the building department may flag the work, the primary legal consequence to the contractor is the inability to collect payment, not a mandatory inspection requirement.
Option D: The contractor pays a small fine but keeps payment
There is no provision in SC law allowing an unlicensed contractor to keep payment after paying a fine. The prohibition on collecting payment is absolute for unlicensed work — it cannot be cured by a fine.
Memory Technique
No license = No pay. Period. Think of it as a two-word rule: 'Unlicensed = Unpaid.' SC law removes all payment rights, not just some.
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Calculate the workers compensation premium for a South Carolina roofing contractor with $250,000 in annual payroll. The rate classification is 5551 with a rate of $28.50 per $100 of payroll.
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According to SC building codes, what is the maximum allowable deflection for a residential floor joist with a 16-foot span under live load?