What is The South Carolina Residential Specialty Contractor Bond?
It is a surety bond needed to activate your license. Why do you need it? The South Carolina Residential Builders Commission (the Obligee) requires you to get one, but we’ll give you more details about them later on.
A surety bond is a three-party contract between the Principal (you), the Obligee, and the Surety Company. In short, it’s a financial guarantee to the Obligee—on behalf of the Surety—that the Principal will complete a service under the regulations stated in the surety bond.
What’s tricky here, is that there are three classifications within this bond. The classification you fit into will dictate the bond amount you need:
- Residential Builder/Certificate of Authorization ($15,000)
- Licensed Residential Specialty Contractor (HVAC, plumber, or electrician) ($10,000)
- Registered Residential Specialty Contractor ($5,000)
Likewise, the classification you fall under is dependent upon your specific license. Once you know that, you know which bond you need.
We mentioned something called an ‘Obligee’ earlier, but what is it? This is a common question we get asked, so we’ve gathered some information from them you may find helpful.
About the Obligee
The Obligee, which is the person that requires you to obtain a bond, for these bonds is the South Carolina Residential Builders Commission. Due to COVID-19, the agency has restricted public access to their building. Fortunately, they remain operational. Here we have provided some information you may find useful:
If you have yet to apply for your license, visit their website for more details. It’s not too late to renew your license either because they’ve extended the deadline!
Important Dates Regarding this License and Bond
We’ve cultivated a list of renewal and expiration dates pertaining to different licenses. Please note that due to the COVID-19 epidemic, the South Carolina Residential Builders Commission has extended the renewal deadline to September 30, 2020 for the Residential Builders, Residential Home Inspectors, and Residential Certificate of Authorizations Licenses. The dates listed below do not take into account this extension.
Licenses that need a bond amount of $15,000:
- Certificate of Authorization: Up for renewal on July 1st of every year.
- Residential Home Builders or Residential Home Inspectors License: Up for renewal June 30th of every even numbered year (2020, 2022, etc.).
Residential Specialty Contractor Licenses that need a bond amount of $10,000:
- Electrical License: Expires June 30th of every odd numbered year (2019, 2021, etc.)
- Heating and Air Conditioning License: Expires June 30th of every odd numbered year.
- Plumbing License: Expires June 30th of every odd numbered year.
License that needs a bond amount of $5,000:
- Registered Residential Specialty Contractor License: Expires June 30th of every odd numbered year.
The corresponding surety bonds for each license do not have specific term dates. Regardless, some Sureties may choose to match the bond term dates to the expiration dates of your license. This decision will vary between Sureties. Now, what’s it going to cost you? That depends…
The Cost of a South Carolina Residential Specialty Contractor Bond
The amount you pay for your bond will depend on the classification you fall into. EZsuretybonds.com offers all these bonds at great prices regardless of your credit score!
- You can get auto-approved for the Residential Builder/Certificate of Authorization Bond with a $15,000 limit for $300, plus shipping costs and fees. In some cases, we may find you an even lower quote and contact you immediately.
- The Licensed Residential Specialty Contractor (HVAC, plumber, or electrician) Bond with a $10,000 limit is available as low as $150 with additional shipping costs and fees.
- If you need the Registered Residential Specialty Contractor Bond with a limit of $5,000, then you’re in luck! This bond is the most affordable at only $100, plus any shipping costs and fees.
At no extra cost, we will mail you a stamped, sealed, and signed version of the bond. Since we are located in Georgia, most clients receive their bond in the mail within 3-5 days. If you’re in a rush, no worries! For a reasonable fee, we’ll deliver surety bonds with raised seals and wet signatures overnight on any business day for the next business day via FedEx.
You’ll complete the application at Ezsuretybonds.com faster than you read this article. It’s a complex process, simplified.
Getting a Surety Bond is Easier Than You Think
Ezsuretybonds.com offers hundreds of surety bonds across the country. We simplify a confusing process to get you the most affordable rates in the shortest amount of time. If you have any other concerns, please visit our FAQ page.