What is the maximum project value a Tier 1 contractor can undertake in South Carolina?
Correct Answer
D) $100,000
Tier 1 contractors in SC are limited to individual projects with a total value not exceeding $100,000.
Why This Is the Correct Answer
Tier 1 is the entry-level residential contractor classification in South Carolina. The law explicitly caps each individual project at $100,000 to limit the scope of work allowed under this license tier.
Why the Other Options Are Wrong
Option A: $50,000
$50,000 is too low — this figure is not the Tier 1 threshold. Confusing it with other state thresholds or subcontractor limits is a common error.
Option B: $150,000
$150,000 exceeds the Tier 1 cap and actually approaches limits associated with higher license tiers. Selecting this suggests confusion between Tier 1 and Tier 2 or Tier 3 thresholds.
Option C: $75,000
$75,000 is a plausible-sounding number but is not the statutory Tier 1 limit. It may be confused with net worth or insurance requirements in other contexts.
Memory Technique
Think '1 tier = $100K': one tier, one hundred thousand. The number of zeros matches the tier number times two (Tier 1 → 100,000 has 5 zeros, an easy anchor).
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