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Construction Law

: The South Carolina Construction Law Blog

Contractors, Consider Upgrading Your License Over Risking Disciplinary Action

By Ryan McCabe

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            In South Carolina, general and mechanical contractors have limitations on the amount of money a project they undertake may cost, unless the contractors qualify for the unlimited group. The limit is calculated based on the licensee's net worth. There are five groups of limitations for mechanical and general contractors respectively. The groups range from limitations of up to $30,000 to unlimited cost on projects.

            The limit refers to the total cost of construction: all cost incurred by the owner, all contractors, subcontractors, and other parties, for labor, materials, equipment, and other expenses. Design expenses will only be included if the construction contract expressly includes them. The same rules apply to the cost of mechanical contractors.

            As a contractor, if you have a limited license you should be very careful. Unexpected additions to cost are not uncommon in the course of construction. Such increases could significantly exceed the licensee's limitation, which may lead to disciplinary action by the Contractors' Licensing Board. Consider upgrading your licenses instead of taking such risk. The form for upgrading your license is available at http://www.llr.state.sc.us/pol/contractors/Forms/DOC180T.dot.

            This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.

Full post as published by The South Carolina Construction Law Blog on February 23, 2009 (boomark / email).