Licensing Requirements
North & South Carolina
North Carolina
Who Must Be Licensed - General and
specialty contractors must be licensed when the project value is $30,000 or
more.
License Classifications - Building;
Residential, Highway; Public Utilities; Specialty Over/Underground Storage
Tank Removal; and Unclassified. An application also must apply for one
of three limitation groups: Unlimited - no restrictions as to value
of any single project; Intermediate - single projects with a value of
up to $500,000; and Limited - single projects with a value of up to
$250,000.
Fees, Renewal and Tax Provisions -
Unlimited: The application fee is $100, and the renewal fee is
$75. Intermediate: The application fee is $75, and the
renewal fee is $50. Limited: The application fee is $50,
and the renewal fee is $25. There is an examination fee of $25 for
each classification where an examination is required. License expire
on December 31. On projects of $5,000 or more, a contractor must pay a
tax ranging from $50 to $625. The amount is determined by the
estimated cost of the project.
Bonding Requirements: None
Liability Insurance: None
Workers Compensation: None
Educational or Examination Requirements:
An applicant or qualifying responsible individual must pass an
examination, which can be either oral or written, as the Board chooses.
The examination tests the applicant's capability to read plans and
specifications, knowledge of ethics, estimating costs, responsibility to the
general public and of Board requirements, and other matters pertaining to
the contracting business.
Qualifying Individual: A
corporate applicant or entity must employ a qualifying responsible
individual to supervise the applicant's compliance with North Carolina
construction codes. If the qualifying individual leaves the licensed
entity, the licensee must replace him or her within 30 days or risk losing
its license and may not bid unless a qualifying responsible individual is
employed.
Contractors' Recovery Fund: Each
time a general contractor applies for a permit to construct a single-family
dwelling, it contributes $5 to the Homeowners' Recovery Fund. The
purpose of the fund is to reimburse homeowners for poor or defective
workmanship by a licensed general contractor.
Financial Statement: An
applicant must submit proof of financial responsibility in the following
amounts:
-
License - Minimum Working Capital
-
Limited - $12,500
-
Intermediate - $50,000
-
Unlimited $100,000
Special Warning: Non-resident
corporations must obtain a Certificate of Authority from the Secretary of
State and submit qualifications for reciprocity to the Board.
Applicable Law: Chapter 87-1et
seq.
For further inquiry, contact:
Licensing Board for General Contractors, PO Box 17187, Raleigh, North
Carolina 27619, Phone 919-571-4183.
South Carolina
Who must be licensed: General,
mechanical and residential contractors must be licensed.
License Classifications:
General contractors are divided into four groups:
-
Group 1: Limited - no one contract to
exceed $250,000
-
Group 2: Intermediate - no one contract to
exceed $750,000
-
Group 3: Unlimited contracts exceeding
$750,000
-
Group 4: No one contract to exceed $75,000
Fees, Renewal and Tax Provisions:
The license fee for general and mechanical contractors is $110, and the
renewal fee is $110. Licenses expire December 31. The license
fee and annual renewal for a residential builder is $100, and the exam fee
is $100. Residential builder licenses expire on July 1. A
bidder's license is required for bidding on a project of $30,000 or more.
The bidder's license fee is $120, and the renewal fee is $120.
Bonding Requirements: A bonding
reference letter is required if an applicant is being licensed for Group 2
or 3. Depending on which group the applicant has applied for, the
letter must state the willingness to furnish performance and payment bonds
for contract amounts up to $750,000 or contract amounts exceeding $750,000.
Liability Insurance: None.
Workers Compensation: None.
Educational or Examination Requirements:
An applicant is required to pass a written examination. Some
classifications require a technical examination. An applicant for a
residential builder license must have a minimum of one year or experience
under the supervision of a licensed residential builder. A notarized
affidavit by the licensed supervisor is required.
Qualifying Individual: None
Contractors' Recovery Fund: None
Financial Statement: Any
contractor seeking licensure for general and mechanical contracts valued
over $250,000 must submit to the Board a financial statement certified by a
public accountant. Residential builders must submit a notarized
financial statement showing a minimum net worth of $50,000. A bond in
amount of $15,000 can be posted in lieu of a financial statement.
Minimum net worth must be shown in the following amounts:
-
Group 1 - $35,000
-
Group 2 - $100,000
-
Group 3 - $200,000
-
Group 4 - $10,000
Special Warning:
-
It is a misdemeanor to practice without a
license or give false or forged evidence in acquiring a license.
-
It is a misdemeanor to receive or consider
any bids unless the bidder is licensed. However, the State Highway
Department requires that only one be licensed before being awarded a State
Highway contract.
Applicable Law:
South Carolina Code - Title 40, Chapter 11
(Contractors)
South Carolina Code - Title 40, Chapter 59
(Residential Home Builders)
For further inquiry, contact:
State of South Carolina Licensing Board for
Contractors, 1300 Pickens Street, PO Box 5737, Columbia, South Carolina
29250, Phone: 803-734-8954.
South Carolina Residential Builders
Commission, 2221 Devine Street, Suite 530, Columbia, South Carolina 29205,
Phone: 803-734-9174.
*From ASA publication "Reference Guide to
Licensing and Registration Requirements in the 50 States and the District",
written by Robert A. Korn with contributions from ASA Attorneys' Council.
2000
Disclaimer: This information does
not contain legal advice. Individual circumstances vary widely, so
readers should consult legal counsel before acting on the information
provided herein.
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