There are multiple requirements and regulations for obtaining a South Carolina contractors license. Knowing how to better navigate the application and becoming familiar with the South Carolina Contractor Licensing Board is helpful. It is important to know what the application requirements are before you start studying for the exams. This will make the application process much less stressful and allow you to focus on your exam studying. The below list outlines a checklist for getting a South Carolina contractors license:
- Take a NASCLA Exam study course
- Pass the NASCLA Exam – submit NASCLA Exam transcript with application
- Pass the Business Management and Law Exam – Submit pass notification with application
- Form your entity that you will be performing work under
- Select your Group
- Designate your Qualifying Party
- Submit either a financial statement or a surety bond
- Submit a Work Experience Affidavit of Qualifying Party
- Complete the Background Information page
- Pay the license fee
The NASCLA Exam
The NASCLA exam consists of 23 books and is a 5 ½ hour exam. There are 125 questions on this exam, however only 115 questions count. The remaining 10 questions are potential future test questions. This means that 81 of the 115 counted questions should be correct to pass with a score of 70%. The exam is open book, so being able to navigate the books is the most important piece to this exam. A quality study course is important, as studying 23 books on your own will not be efficient.
In South Carolina, the NASCLA exam will serve as the trades exam to become a commercial and residential licensed general contractor. This is an Unlimited Building license in South Carolina. The NASCLA exam was designed to create a more universal exam to allow contractors to be licensed in multiple states. Currently, the NASCLA exam is accepted as the trades exam in 16 different states and the U.S. Virgin Islands. If you are planning to have a South Carolina contractors license, NASCLA is your best testing option. You must apply for the NASCLA exam, which takes about 7 business days to return. After receiving your application back, you can schedule your exam through PSI Exams.
The Business Management and Law Exam
Passing the Business Management and Law Exam is required to obtain a South Carolina contractors license. There are 50 questions on the South Carolina Business Management and Law Exam. You must answer 35 of the 50 questions correct to receive a passing grade of 70%. The exam is 125 minutes long. The book used for this exam is NASCLA Contractors Guide to Business, Law and Project Management – South Carolina Commercial Contractors, 8th Edition. Just like the NASCLA Exam, the Business and Law Exam is taken through PSI Exams.
We do not offer a course for this exam. There are a few reasons for this. One being that it is a single book, open book exam. Also, the NASCLA exam includes a business and law book within the 23 books that you are tested on. Much of the information is from that same book! The specific South Carolina rules and regulations should be your focus on this exam as you will probably already have the other information memorized from your NASCLA exam studying.
Creating an Entity and Selecting Your Group
Before beginning your application process, be sure that your entity is created. You want to complete the application as the entity that you are going to perform work under. If you fill out the application as yourself, the South Carolina contractors license will be under you but not your entity.
Once you create your entity, you will need to create a business bank account and obtain the correct amount of funds or a surety bond to qualify for the Group that you wish to qualify for. Below are the Group requirements and allowable values of work:
- Group 1
- Net worth value must be at least $10,000 or surety bond amount of $20,000
- Single job limit value of $50,000
- Group 2
- Net worth value must be at least $40,000 or surety bond amount of $80,000
- Single job limit value of $200,000
- Group 3
- Net worth value must be at least $100,000 or surety bond amount. of $200,000
- Single job limit value of $500,000
- Group 4
- Net worth value must be at least $175,000 or surety bond limit of $350,000
- Single job limit value of $1,500,000
- Group 5
- Net worth value msut be at least $250,000 or surety bond limit of $500,000
- Single job limit value – Unlimited
Note: if you plan to get your South Carolina contractors license in the Group 4 or Group 5 category you should take the NASCLA and Business Management and Law Exam combination.
Provide Qualifying Party Information
The qualifying party is the individual that has passed all the necessary exams and is qualifying the Licensee/DBA of this application to become licensed. The Licensee would be the South Carolina contractors license holder. For example, if pass the NASCLA and Business Management and Law exams, and create an LLC for the business, your LLC would be the licensee and you would be the qualifying party.
If the qualifying party is licensed in states that have reciprocity with the South Carolina contractors license, the application will be completed as a waiver/reciprocity application. The states that reciprocate with South Carolina for a Building Construction license are Louisiana, Mississippi, North Carolina, Tennessee, and Utah. However, the NASCLA exam has reciprocity in 16 different states and the U.S. Virgin Islands. These states are Alabama, Arizona, Arkansas, Florida, Georgia, Mississippi, Nevada, New Mexico, North Carolina, Oregon, Louisiana, South Carolina, Tennessee, Utah, Virginia, and West Virginia. You can see why we stress the NASCLA Exam over your state’s contractor exam!
The qualifying party will also be responsible for completing the work experience affidavit. As a new applicant you must meet certain work experience requirements. This experience must be 2 years of commercial work experience within the pas 5 years, for each classification you are applying for. If you are a supervisor, submit hands-on work you supervise employees performing in the field. The work experience affidavit will require a job name, description of duties, project dates, contact person, and address and phone number of the contact person.
Background Information
The Background Information section of the South Carolina Contractors License Application is to confirm if you or the entity have committed certain financial crimes such as embezzlement, theft, forgery etc. It is also to confirm if the entity or ownership has filed bankruptcy in the past. You will also confirm if the qualifying party is a United States citizen.
Conclusion
A South Carolina contractors license is a great achievement that can bring you great success. Whether you are trying to boost your resume or ready to start a general contractor company, being licensed is a great decision. If you want to have the ability to perform contractor work for other people, pull your own permits, and launch a contractor business being licensed is required. The application list of requirements, regulations, and exams may seem like a lot at first. However, it is very achievable and worth the time investment. Your dreams should not stop at a challenging application, they should accelerate! We hope that this article was helpful in navigating your way through how to get a South Carolina contractors license. Good luck!