What is the minimum bond amount required for a South Carolina Tier III contractor?
Correct Answer
C) $20,000
South Carolina requires Tier III contractors to maintain a minimum surety bond of $20,000.
Why This Is the Correct Answer
South Carolina Title 40-11 requires Tier III general contractors to maintain a minimum surety bond of $20,000. The surety bond protects consumers and project owners against contractor non-performance or financial failure, and the $20,000 amount is calibrated to the larger project scopes Tier III contractors are permitted to undertake.
Why the Other Options Are Wrong
Option A: $10,000
$10,000 is below the statutory Tier III requirement. This amount may apply to lower-tier license categories or specialty trades, but it is insufficient for the financial exposure associated with Tier III general contracting work.
Option B: $25,000
$25,000 exceeds the required Tier III bond amount. It is a plausible distractor but not the correct statutory figure under SC Title 40-11.
Option D: $15,000
$15,000 is the minimum bond for Louisiana residential building contractor licenses (R.S. 37:2150), not South Carolina Tier III. This answer is a cross-state distractor that rewards candidates who have memorized state-specific figures correctly.
Memory Technique
For South Carolina Tier III, remember '20 for the bond, 150 for net worth.' The bond ($20K) is the smaller obligation — think of it as the contractor's 'entry ticket,' while net worth ($150K) is their 'financial muscle.' Tier III = 20K 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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