If you are a subcontractor for a residential project – either from South Carolina or from out-of-state – you must check whether you need to be licensed or registered before you perform work in South Carolina. If you are not licensed or registered, not only may you be liable for a criminal offense, but you will not be able to file a mechanic’s lien or lawsuit if you are not paid.
Section 40-59-30 of the South Carolina Code requires residential contractors and residential specialty contractors to be registered or licensed before making a proposal to perform work or before performing construction work in South Carolina. Failure to do so is a misdemeanor.
Section 40-59-10 (7) defines residential specialty contractors as including almost all trade subcontractors on residential projects:
- Plumbers
- Electricians
- HVAC installers or repairers
- Vinyl and aluminum siding installers
- Insulation installers
- Roofers
- Floor covering installers
- Masons
- Dry wall installers
- Carpenters
- Stucco installers
- Painters/wallpaper installers
Section 40-59-30(B) states that an unregistered specialty subcontractor may not file a mechanic’s lien or lawsuit for collection:
(B) Notwithstanding Section 29-5-10, or another provision of law, a person or firm who first has not procured a license or registered with the commission and is required to do so by law may not file a mechanics’ lien or bring an action at law or in equity to enforce the provisions of a contract for residential building or residential specialty contracting which the person or firm entered into in violation of this chapter.
Be careful before you begin work in South Carolina, even if you know that the general contractor is licensed. If you do not register or become licensed as required, you may be working for free. To apply to be a residential specialty contractor, go to the Residential Builders website at www.llr.state.sc.us/pol/residentialbuilders click on Application/Forms and then click on the Specialty Application link and print the application form or contact the Residential Builders Commission at 803-896-4696 and request that an application form be mailed to you.
If you have any questions about being licensed or registered in South Carolina, please let us know. The attorneys of Gibbes Burton are passionate about helping professionals and businesses to minimize risk and build success.