South Carolina – General Contractor License Group 3 Bond

From our perspective, contractors entering the Group 3 level in South Carolina are preparing for more substantial jobs—ones that demand not only skill and strategy but compliance with financial guarantees that protect clients and regulators. Whether you’re working in Columbia, Charleston, or the City of Orangeburg, securing the South Carolina – General Contractor License Group 3 ($150,000) Bond is a key step in obtaining your license.

This bond is required by the South Carolina Contractor’s Licensing Board for general contractors whose individual project values fall between $250,000 and $750,000. The bond serves as a promise that you will follow state construction laws and complete work according to contract terms. If you don’t, the bond gives financial recourse to clients or suppliers affected by your actions. For contractors moving from smaller-scale work or expanding their capacity, this bond is both a legal necessity and a signal of credibility.

Where Bond Confusion Slows Progress

We’ve noticed that many contractors hesitate when it comes to surety bonds. The terminology feels technical, the paperwork seems excessive, and the actual purpose of the bond often isn’t clear. Some believe it’s a form of insurance. Others think it’s a refundable deposit. In fact, it’s neither.

The South Carolina – General Contractor License Group 3 ($150,000) Bond is a legal agreement that holds you financially accountable for your obligations as a licensed contractor. It differs from other required bonds, such as the South Carolina – General Contractor License Group 2 ($60,000) Bond, which applies to smaller projects, or the South Carolina – General Contractor License Group 4 ($250,000) Bond, which applies to much larger ones.

Mistaking one for another is a common problem, often leading to rejected applications, delays in license approvals, and lost contract opportunities.

How Swiftbonds Helps You Get It Right

Based on our experience working with South Carolina contractors and the South Carolina Department of Labor, Licensing and Regulation (LLR), Swiftbonds understands the nuances that come with license bonding. We’ve supported builders across the state with fast, legally sound surety bond solutions. Whether you’re a first-time applicant or upgrading your license group, we help you get bonded properly—and quickly.

We know the exact documents the South Carolina Contractor’s Licensing Board expects and how to tailor your bond application to avoid delays. Our bonds meet all legal requirements under South Carolina Code § 40-11-262, which outlines financial qualification standards for each license group.

Getting the Bond—Step by Step

What we’ve discovered is that when contractors follow a clear plan, the bonding process becomes far less intimidating. Here’s how to secure the South Carolina – General Contractor License Group 3 ($150,000) Bond through Swiftbonds:

1. Identify your license group. Group 3 licenses cover projects valued at $250,000 to less than $750,000.
2. Apply for your contractor license through the South Carolina Contractor’s Licensing Board.
3. Choose your bonding option: submit a financial statement showing net worth of at least $150,000 or apply for a $150,000 surety bond.
4. Submit your bond application to Swiftbonds, including personal and business information.
5. Pay the bond premium, which varies based on credit, business history, and experience.
6. Receive your bond and submit it using state form CLB-003 to complete your license application.

Swiftbonds works to make this process fast, clear, and affordable.

Why It Pays to Act Early

We’ve found that the contractors who start their bond application early avoid costly interruptions in their licensing process. Whether you’re applying for a new license or renewing an existing one, your application won’t be approved until the bonding requirement is fulfilled.

This is especially important for contractors with pending contracts. A bonding delay can mean missing a bid window or losing a project altogether. Acting early gives you a buffer to gather documents, correct errors, and submit your application with confidence.

The Cost of Missing the Mark

In our observation, contractors who misunderstand or delay their bonding process often pay a higher price later. Submitting the wrong bond—such as using the South Carolina – General Contractor License Group 2 ($60,000) Bond instead of the $150,000 Group 3 bond—can trigger application rejections and prevent you from securing work.

Some contractors mistakenly assume their previous license group bond will carry over. That’s not the case. Each license group has a specific financial requirement. Failure to meet that requirement, even by oversight, may result in fines, project shutdowns, or license suspension.

Bonding mistakes are avoidable—but only with the right knowledge and guidance.

Why the Right Bond Strengthens Your Business

We’ve learned that contractors who obtain the correct bond—on time and through a trusted provider—build stronger relationships with clients and regulators alike. The South Carolina – General Contractor License Group 3 ($150,000) Bond confirms your professionalism and commitment to accountability.

When paired with a solid project portfolio and good work practices, this bond becomes a competitive advantage. You’re better positioned to win contracts, negotiate better terms, and expand your project scope. It sends a message to clients, vendors, and subcontractors: you’re licensed, bonded, and ready to deliver.

This level of professionalism is just as valuable in higher license groups, such as those requiring the South Carolina – General Contractor License Group 4 ($250,000) Bond. At each stage, proper bonding is a signal of trust.

South Carolina Bonding Law and Requirements

The requirement for the South Carolina – General Contractor License Group 3 ($150,000) Bond is based on South Carolina Code § 40-11-262. This statute outlines financial thresholds for each license group and offers two paths: a bond or a qualifying financial statement.

Contractors who cannot meet the net worth threshold must file a surety bond for the full value of their group requirement. The bond must be issued by a surety company authorized in South Carolina, and it must follow the format required by the Licensing Board (form CLB-003).

For official guidance and forms, you can visit the South Carolina Legislature’s website or access resources through the LLR Contractor’s Licensing Board portal.

Conclusion

We’ve come to appreciate that most contractors just want to get their license approved and get to work. But skipping steps or filing the wrong bond can stop progress cold. The South Carolina – General Contractor License Group 3 ($150,000) Bond is your proof of financial responsibility—and Swiftbonds is ready to help you secure it the right way.

Whether you’re transitioning from Group 2 or preparing to grow into Group 4, we offer fast, reliable bonding support backed by years of experience. Our team knows South Carolina construction law, bond formatting, and the inner workings of license approvals.

Let Swiftbonds help you check off this requirement with ease, so you can focus on what you do best—building South Carolina, one job at a time.

Frequently Asked Questions

Who needs the South Carolina – General Contractor License Group 3 ($150,000) Bond?

We’ve often noticed that contractors ask if the bond is optional. It’s not. If you apply for a Group 3 license and don’t meet the $150,000 net worth threshold, you must provide this bond.

How does this bond differ from Group 2 or Group 4 bonds?

We’ve often explained that Group 2 covers smaller jobs (up to $250,000) and requires a $60,000 bond. Group 4 covers larger jobs (up to $1,500,000) and requires a $250,000 bond. The bond must match your license group exactly.

Is the bond refunded after the license is issued?

We’ve often clarified that the bond is not refundable. It is a financial guarantee issued by a surety, not a deposit. You pay a premium to maintain the bond during your license period.

What happens if I use the wrong bond value?

We’ve often seen applications delayed or rejected. The Licensing Board will not accept a bond that doesn’t match the license group. You’ll need to reissue the bond before approval.

Can I switch to a financial statement later instead of keeping the bond?

We’ve often heard this question. Yes, if your net worth increases and you want to remove the bond, you can file updated financials. The board will need to approve the switch.

Does this bond protect the contractor?

We’ve often had to clarify this. No, it protects the public. If you break licensing laws or fail to meet contract terms, the bond allows harmed parties to recover losses—then the surety collects from you.