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South Carolina bonds

South Carolina — Mechanical Contractors License Group 3 Bond

Apply for the $30,000 South Carolina Group 3 mechanical contractor bond when you choose surety security instead of the required net worth or working capital statement.

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Recorded state
South Carolina
Bond type
HVAC & Mechanical Contractor Bond
Category
Contractors & construction

What this bond does

This bond protects persons who sustain damages due to a mechanical contractor's breach of contract, failure to furnish labor, materials, or professional services, or other unlawful acts related to construction projects. It acts as an assurance of financial responsibility to the State of South Carolina and the public.

Who needs it
This bond is intended for individuals and businesses applying for or maintaining a Group 3 Mechanical Contractor license in South Carolina. It is specifically for contractors who choose to fulfill financial solvency requirements through a surety bond rather than providing a verified net worth or working capital financial statement.
Who it protects
The bond is held for the benefit of the South Carolina Contractor’s Licensing Board and any party damaged by the principal’s breach of contract or unlawful performance in construction work. The aggregate liability of the surety for all claims during a single license term, which spans a twenty-four month period from November 1 to October 31, is $30,000.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Bond Obligations and Scope

The Group 3 mechanical contractor bond must remain in effect while you maintain the license unless you provide the required financial statement. Other bonds required by law, regulation or contract remain separate; this licensing bond does not replace them.

The bond remains in force until the contractor provides the Board with evidence of the required net worth or working capital. The surety may cancel the bond by providing thirty days' written notice to both the Board and the contractor, though this does not release the surety from liability accrued before the cancellation date.

Compliance and Licensing Context

The bond must list the State of South Carolina as obligee and come from a surety authorized to transact surety business in the state. Attach the required Power of Attorney for the surety's signing representative when filing the executed document with the Board.

Because this bond is tied specifically to the Group 3 license category, it requires a fixed bond amount of $30,000. It must be filed correctly with the Board to serve as an official replacement for the financial statement typically required under Section 40-11-260.

Managing Claims and Payments

In the event of a valid claim, the surety is obligated to pay damages up to the $30,000 limit for the defined license term. The surety must notify the Board in writing within thirty days of any payment made against the bond in good faith.

Rights of action are limited strictly to the Board or persons who have sustained loss or damage as defined by the bond's terms. Claimants must submit their claims using the official forms approved by the Board for processing.

Sources

Have these ready

  1. Confirm Group 3 on your license application or renewal and use the Board's mechanical contractor bond form.
  2. Have the legal applicant name, business address and license details ready for the provider application.
  3. Purchase Now opens Propeller's application in a new tab; submitting it is separate from surety issuance.
  4. After issuance, check the required signatures and attached Power of Attorney, then file with the Board as directed.

Questions about this bond

What is the penalty amount for a Group 3 Mechanical Contractor bond?

The bond amount for a Group 3 Mechanical Contractor is $30,000 per license term.

Can I use this bond instead of a financial statement?

Yes, under South Carolina Code Section 40-11-262, this surety bond is an authorized alternative to providing a financial statement of net worth or working capital.

What happens when I start the application?

You continue to Propeller in a new tab. Supply the Group 3 applicant details and Board form; issuance, execution and Board filing follow separately.

How long does my bond stay in effect?

The bond is continuous for as long as you maintain your license, unless you replace it with a financial statement or it is cancelled by the surety with thirty days' notice.

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