​​SC Contractor Bond or Residential Builder Bond

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What is a South Carolina Contractor License or Residential Builder Bond?

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South Carolina DHEC - Onsite Wastewater System Installer - Tier 3 ($20,000)

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South Carolina has many contractor license classifications, and each subset of licensure has its own surety bond requirement. In most cases, you're required to purchase a surety bond before the Department of Labor, Licensing, and Regulation will issue your license.

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Professionals installing on-site wastewater systems in South Carolina at the Tier 3 level must secure a $20,000 surety bond as part of their regulatory compliance with the South Carolina Department of Health and Environmental Control (DHEC). This bond protects property owners and the public from financial harm caused by improper installation work.

Keep in mind that bonds are not insurance, and you are ultimately responsible for any damages and claims under the Surety Bond indemnity agreement, so proceed with caution and make sure you have the proper insurance coverage in place per SC requirements.

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South Carolina Code of Regulations
Chapter 61 - DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL
Subchapter 61-56 - ONSITE WASTEWATER SYSTEMS
Section 61-56.703 - Bonding and Insurance Requirements: Tier 3 Installers

Universal Citation: SC Code Regs 61-56.703

Current through Register Vol. 49, No. 6, June 27, 2025

703.1. Proof of both insurance and bond coverage shall be furnished to the Department prior to licensure as a Tier 3 installer and upon license renewal.

703.2. An on-site wastewater system Tier 3 installer shall be responsible for obtaining and maintaining both insurance and bond coverage for as long as the installer is licensed as a Tier 3 installer.

703.3. Failure to maintain both insurance and bond coverage shall result in the suspension or revocation of the Tier 3 installer license.

 

For more information, see the SC Department of Environmental Services link for licensure.  

 

https://des.sc.gov/permits-regulations/septic-tanks/licensing-septic-system-installers

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