What is the maximum contract value limit for a Tier 1 contractor in South Carolina?
Correct Answer
B) $200,000 per contract, $500,000 total volume
Tier 1 contractors are limited to $200,000 per individual contract and $500,000 in total contract volume.
Why This Is the Correct Answer
Option B is correct. Under South Carolina's contractor licensing law, Tier 1 (entry-level) contractors are limited to $200,000 per individual contract and $500,000 in total annual contract volume. These limits reflect Tier 1's status as the most restricted classification, appropriate for smaller-scale residential and light commercial work.
Why the Other Options Are Wrong
Option A: $500,000 per contract, $1,000,000 total volume
$500,000 per contract / $1,000,000 total volume are limits associated with higher tier classifications, not Tier 1. Applying these higher limits to Tier 1 would overstate the scope allowed for the entry-level license.
Option C: $300,000 per contract, $600,000 total volume
$300,000 per contract / $600,000 total volume do not correspond to any recognized SC licensing tier limit. This is a distractor designed to test whether candidates have memorized the actual Tier 1 thresholds.
Option D: No limit on contract value or volume
Tier 1 contractors absolutely have limits on contract value and volume — this is the defining characteristic of the tiered system. Unlimited scope is not available at Tier 1; unrestricted work requires higher tier licensing.
Memory Technique
For Tier 1, remember '200/500': $200,000 per contract, $500,000 total. The ratio is 1:2.5. Think of Tier 1 as a 'starter license' with starter-sized numbers — 200 and 500 are the smallest limits in the tier system.
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?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass