S*401 Session 112 (1997-1998)
S*0401(Rat #0507, Act #0440 of 1998) General Bill, By Leventis and Giese
A BILL TO AMEND CHAPTER 11, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO THE LICENSING AND REGULATION OF CONTRACTORS, SO AS TO CONFORM THIS
CHAPTER TO THE STATUTORY ORGANIZATIONAL FRAMEWORK ESTABLISHED FOR PROFESSIONAL
AND OCCUPATIONAL BOARDS IN CHAPTER 1, TITLE 40, AND TO FURTHER PROVIDE FOR THE
LICENSURE AND REGULATION OF CONTRACTORS INCLUDING, BUT NOT LIMITED TO,
REVISING THRESHOLD PROJECT COSTS REQUIRING A LICENSED CONTRACTOR, REVISING
QUALIFYING PARTY REQUIREMENTS AND RESPONSIBILITIES, AND PROVIDING A
GRANDFATHER CLAUSE FOR CURRENT QUALIFIERS, ESTABLISHING FINANCIAL STATEMENT
LICENSE GROUPS, AND REVISING REQUIREMENTS FOR FINANCIAL STATEMENTS, REDUCING
BIDDERS LICENSE FEES, EXPANDING GROUNDS FOR DISCIPLINARY ACTION AND SANCTIONS
AGAINST UNLICENSED CONTRACTORS, AUTHORIZING CEASE AND DESIST ORDERS,
AUTHORIZING EXAMINATION WAIVERS FOR CERTAIN CONTRACTORS LICENSED IN OTHER
STATES, PROVIDING FOR THE REGULATION OF CONSTRUCTION MANAGEMENT SERVICES,
ESTABLISHING BIDDING REQUIREMENTS FOR PRIME CONTRACTORS, REVISING LICENSING
SUBCLASSIFICATIONS, PROVIDING CRITERIA FOR OWNERS TO OBTAIN BUILDING PERMITS,
AND PROVIDING LICENSURE EXEMPTIONS.
02/20/97 Senate Introduced and read first time SJ-4
02/20/97 Senate Referred to Committee on Labor, Commerce and
Industry SJ-4
04/29/97 Senate Committee report: Favorable with amendment Labor,
Commerce and Industry SJ-11
04/30/97 Senate Read second time SJ-61
04/30/97 Senate Ordered to third reading with notice of
amendments SJ-61
06/05/97 Senate Amended SJ-248
06/05/97 Senate Read third time and sent to House SJ-248
01/13/98 House Introduced and read first time HJ-54
01/13/98 House Referred to Committee on Labor, Commerce and
Industry HJ-55
05/27/98 House Committee report: Favorable with amendment Labor,
Commerce and Industry HJ-6
05/28/98 House Requests for debate-Rep(s). Bailey, Cato, Kirsh,
Inabinett, Rice, Hinson, Meacham, Stuart,
Seithel, Sharpe & R. Smith HJ-16
06/02/98 House Amended HJ-100
06/02/98 House Read second time HJ-130
06/02/98 House Roll call Yeas-98 Nays-0 HJ-130
06/03/98 House Read third time and returned to Senate with
amendments HJ-25
06/03/98 Senate House amendment amended
06/03/98 Senate Returned to House with amendments
06/04/98 House Concurred in Senate amendment and enrolled HJ-25
06/10/98 Ratified R 507
06/15/98 Signed By Governor
08/26/98 Effective date 04/01/99
08/26/98 Copies available
06/15/98 Act No. 440
(A440, R507, S401)
AN ACT TO AMEND CHAPTER 11, TITLE 40, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE
LICENSING AND REGULATION OF CONTRACTORS, SO AS TO
CONFORM THIS CHAPTER TO THE STATUTORY
ORGANIZATIONAL FRAMEWORK ESTABLISHED FOR
PROFESSIONAL AND OCCUPATIONAL BOARDS IN CHAPTER 1,
TITLE 40, AND TO FURTHER PROVIDE FOR THE LICENSURE
AND REGULATION OF CONTRACTORS INCLUDING, BUT NOT
LIMITED TO, REVISING THRESHOLD PROJECT COSTS
REQUIRING A LICENSED CONTRACTOR, REVISING
QUALIFYING PARTY REQUIREMENTS AND RESPONSIBILITIES,
AND PROVIDING A GRANDFATHER CLAUSE FOR CURRENT
QUALIFIERS, ESTABLISHING FINANCIAL STATEMENT LICENSE
GROUPS AND REVISING REQUIREMENTS FOR FINANCIAL
STATEMENTS, REDUCING BIDDERS' LICENSE FEES,
EXPANDING GROUNDS FOR DISCIPLINARY ACTION AND
SANCTIONS AGAINST UNLICENSED CONTRACTORS,
AUTHORIZING CEASE AND DESIST ORDERS, AUTHORIZING
EXAMINATION WAIVERS FOR CERTAIN CONTRACTORS
LICENSED IN OTHER STATES, PROVIDING FOR THE
REGULATION OF CONSTRUCTION MANAGEMENT SERVICES,
ESTABLISHING BIDDING REQUIREMENTS FOR PRIME
CONTRACTORS, REVISING LICENSING SUBCLASSIFICATIONS,
PROVIDING CRITERIA FOR OWNERS TO OBTAIN BUILDING
PERMITS, AND PROVIDING LICENSURE EXEMPTIONS.
Be it enacted by the General Assembly of the State of South Carolina:
Chapter revised
SECTION 1. Chapter 11, Title 40 of the 1976 Code is amended
to read:
"CHAPTER 11
Contractors
Section 40-11-5. Unless otherwise provided for in this chapter,
Article 1, Chapter 1, Title 40 applies to licensed contractors; however, if
there is a conflict between this chapter and Article 1, Chapter 1, Title 40,
the provisions of this chapter control.
Section 40-11-10. (A) There is created the South Carolina
Contractor's Licensing Board under the administration of the Department
of Labor, Licensing and Regulation. The purpose of this board is to
protect the health, safety, and welfare of the public through the regulation
of businesses and individuals who identify, assess, and provide contract
work to individuals or other legal entities through the administration and
enforcement of this chapter and any regulation promulgated under this
chapter and Article 1, Chapter 1.
(B) The board consists of eight members appointed by the
Governor, six of whom must be licensed contractors. Of the six
contractors, one must have as the larger part of his business the
construction of highways, one must have as the larger part of his business
the construction of public utilities, one must have as the larger part of his
business the construction of commercial, industrial, and institutional
buildings, one must have as the larger part of his business the performance
of heating, plumbing, or air conditioning work, one must have as the
larger part of his business the performance of electrical work, and one
must have as the larger part of his business the installation, servicing, and
responding to burglar or fire alarm systems or the performance of fire
sprinkler system work. Two members must be consumer members
representing the public at large. Nominations for appointment to the
board may be submitted to the Governor by the board or an individual,
group, or association.
(C) Members serve terms of five years and until their successors are
appointed and qualify. A vacancy on the board must be filled in the
manner of the original appointment for the remainder of the unexpired
term.
Section 40-11-20. For purposes of this chapter:
(1) 'Board' means the South Carolina Contractors' Licensing Board.
(2) 'Bid' means an offer to furnish labor, equipment, or materials or
other services regulated by this chapter.
(3) 'Certificate holder' means a qualifying party.
(4) 'Contractor' means a general or mechanical contractor regulated
under this chapter.
(5) 'Construction manager' means an entity working for a fee whose
duties are to supervise and coordinate the work of design professionals
and multiple prime contractors, while allowing the design professionals
and contractors to control individual operations and the manner of design
and construction. Services provided by a construction manager may
include:
(a) coordination, management, or supervision of design or
construction;
(b) cost management, including estimates of construction costs
and development of project budgets;
(c) scheduling, which may include critical path techniques, for
all phases of a project;
(d) design review, including review of formal design submission
and construction feasibility; and
(e) bid packaging and contractor selection. An owner, who
performs construction management himself is not considered a
construction manager for purposes of this chapter.
(6) 'Department' means the Department of Labor, Licensing and
Regulation.
(7) 'Entity' means a sole proprietorship, partnership, limited liability
partnership, limited liability company, association, joint venture,
cooperative, corporation, or other legal entity authorized by law and
approved by the board.
(8) 'General construction' means the installation, replacement, or
repair of a building, structure, highway, sewer, grading, asphalt or
concrete paving, or improvement of any kind to real property.
(9) 'General contractor' means an entity which performs or
supervises or offers to perform or supervise general construction.
(10) 'License classification' or 'subclassification' means the type of
construction for which a contractor may be licensed to do business.
(11) 'License group' means the financial limitations for bidding and
performing general or mechanical construction.
(12) 'Licensee' means an entity which has been issued either a
general or mechanical contractor's license by the department.
(13) 'Licensed contractor' means an entity that is licensed by the
South Carolina Contractor's Licensing Board to engage in general or
mechanical contracting within the State.
(14) 'Mechanical contractor' means an entity which performs or
supervises, or offers to perform or supervise, mechanical construction.
(15) 'Mechanical construction' means the installation, replacement,
or repair of plumbing, heating, air conditioning, process piping,
refrigeration, lightning protection equipment, or electrical components,
fixtures, or devices of any kind, excluding burglar alarm work.
(16) 'Individual' means a natural person.
(17) 'Prime contractor' means an entity which contracts directly with
an owner to perform general or mechanical construction.
(18) 'Primary qualifying party' means a qualifying party who has
been designated by a licensee as the principal individual responsible for
directing or reviewing work performed by the licensee in a particular
license classification or subclassification.
(19) 'Public owner' means the State and any of its political
subdivisions.
(20) 'Qualifying party' means an individual who has been issued a
certificate to qualify an entity for a license by way of examination in a
license classification or subclassification.
(21) 'Sole prime contractor' means the prime contractor for a project
on which there is only one prime contractor.
(22) 'Subcontractor' means an entity who contracts to perform
construction services for a prime contractor or another subcontractor.
(23) 'Total cost of construction' means the actual cost incurred by the
owner, all contractors, subcontractors, and other parties for labor,
material, equipment, profit, and incidental expenses for the entire project.
This does not include the cost of design services unless those services are
included in a construction contract.
(24) 'Unlicensed contractor' means an entity performing or
overseeing general or mechanical construction without a license.
Section 40-11-30. No entity or individual may practice as a
contractor by performing or offering to perform contracting work for
which the total cost of construction is greater than five thousand dollars
for general contracting or greater than five thousand dollars for
mechanical contracting without a license issued in accordance with this
chapter.
Section 40-11-50. (A) The Department of Labor, Licensing and
Regulation shall provide all administrative, fiscal, investigative,
inspectional, clerical, secretarial, and license renewal operations and
activities of the board in accordance with Section 40-1-50.
(B) The following fees will apply:
(1) Biennial License Fee - $350.00
(2) Renewal Fee - $350.00
(3) Biennial Certificate Fee - $10.00
(4) Late Renewal Penalty:
(a) $100.00 for up to 30 days,
(b) $150.00 for 31 to 60 days,
(c) $200.00 for 61 to 90 days,
(d) an initial application is required after ninety days.
(5) Replacement of lost or destroyed certificate - $10.00
(6) Replacement of lost or destroyed license - $ 5.00
(7) Annual inactive certificate status fee - $10.00 per year for up
to four years
(8) Annual inactive license status fee - $110.00 per year. For
purposes of this item, 'inactive license status' means the holding of a valid
license by a contractor who is not actively submitting bids to perform
work under that license.
Section 40-11-60. The board may adopt rules governing its
proceedings and may promulgate regulations necessary to carry out the
provisions of this chapter.
Section 40-11-70. In addition to powers and duties provided in
Article 1, Chapter 1, the board may:
(1) establish a time limit beyond which an initial complaint may not
be considered;
(2) establish a procedure for receiving complaints which protects
the anonymity of the person filing the complaint;
(3) order an entity or individual found in violation of this chapter
or a regulation promulgated under this chapter to take remedial action;
(4) establish guidelines for identifying substandard construction
work.
Section 40-11-80. The Department of Labor, Licensing and
Regulation shall investigate complaints and violations of this chapter as
provided for in Section 40-1-80.
Section 40-11-90. The results of an investigation must be presented
to the board and any subsequent hearing must be conducted in accordance
with Section 40-1-90.
Section 40-11-100. (A) The department may refer any reports of
violations of this chapter and Article 1, Chapter 1 of this title or any
reports of violations of regulations promulgated under this chapter
directly to the board or may issue administrative citations and cease and
desist orders in person or by certified mail and may assess administrative
penalties against any entity or individual, including unlicensed
contractors, for violations of this chapter as specified by the board.
(B) Separate citations may be issued and separate administrative
penalties may be assessed for each violation, however, no more than two
thousand five hundred dollars in administrative penalties may be assessed
against an entity or an individual per day.
(C) Administrative penalties authorized under this section are
separate from and in addition to all other remedies, either civil or
criminal.
(D) Administrative penalties assessed pursuant to this section may
not exceed the following limits:
(1) for a first offense, not more than a five-hundred dollar
penalty;
(2) for a second offense in a five-year period, the citation must
be referred to the board for action in accordance with Section 40-11-110.
(E) An entity or individual assessed administrative penalties may
appeal those penalties to the board within fifteen days of receipt of the
citation. If an appeal is filed, the department shall schedule a hearing
before the board, which shall make a determination in the matter. If no
appeal is filed, the citation is deemed a final order and the administrative
penalties must be paid within thirty days of receipt of the citation.
Section 40-11-110. (A) The board may impose disciplinary action
authorized by this chapter upon a licensee, certificate holder, or other
entity or individual if the board finds any of these conditions:
(1) subsequent discovery of facts which if known at the time of
issuance or renewal of a license or certificate would have been grounds
to deny the issuance or renewal of a license or certificate;
(2) negligence, performing substandard work, incompetence, or
misconduct;
(3) abandonment of a contract or refusal to perform after
submitting a bid on work without legal excuse for the abandonment or
refusal;
(4) fraud or deceit in obtaining a license or certification;
(5) violation of a provision of this chapter, Article 1, Chapter 1
of this title or a regulation promulgated under these chapters;
(6) misrepresentation of a material fact by an applicant in
obtaining a license or certificate;
(7) conviction or entering a guilty plea or plea of nolo contendere
in a court of competent jurisdiction of this or any other state, district, or
territory of the United States or of a foreign country of the offense of
forgery, embezzlement, obtaining money under false pretenses, theft,
extortion, or conspiracy to defraud or other like offense regardless of
whether an appeal has been sought;
(8) conviction or entering a guilty plea or plea of nolo contendere
of a felony or a crime involving moral turpitude in connection with the
performance of a contract for construction regardless of whether an appeal
has been sought;
(9) aiding or abetting an unlicensed entity to evade the provisions
of this chapter, combining or conspiring with an unlicensed entity,
allowing one's license to be used by an unlicensed entity, or acting as
agent, partner, or associate, or an unlicensed entity;
(10) entering into a contract with an unlicensed contractor for
work to be performed for which a license is required;
(11) false, misleading, or deceptive advertising whereby a member
of the public may be misled and injured;
(12) contracting or offering to contract or submitting a bid while
a license is under suspension or probation;
(13) failure to obtain a building permit as required by a local or
state government before engaging in construction;
(14) failure to take appropriate corrective action to comply with
this chapter or a regulation promulgated under this chapter without valid
justification within a reasonable period of time after receiving a written
directive from the department;
(15) failure to maintain the net worth requirements for licensure;
(16) failure to comply with an order of the board;
(17) failure to provide pertinent records and documents as
requested by the department or board;
(18) failure to maintain a business address accessible to the public;
(19) failure to comply with a directive of the department;
(20) failure to notify the department of changes in information
required in an original or renewal application;
(21) contracting or offering to contract for construction work
exceeding the limitations of a group or outside the classification or
subclassification of a license;
(22) attempting to serve in the capacity of primary qualifying party
while serving a jail sentence; or
(23) departure from an applicable building code of the State of
South Carolina or any of its political subdivisions as determined by a
court of competent jurisdiction.
(B) Disciplinary action may be taken against an entity or individual
who the board determines to be responsible for violations of this chapter
regardless of changes in corporate identity or federal employer
identification subsequent to the violation. In determining responsibility,
the board may consider, but is not limited to, an individual's:
(1) participation in management or supervision related to the
violation;
(2) position as sole proprietor, partner, officer, or qualifying
party.
(C) The board may, in addition to all other disciplinary actions,
require a licensee, certificate holder, or other entity or individual to pay
a civil penalty of up to five thousand dollars for each violation of this
chapter or of a regulation promulgated under this chapter and may order
an unlicensed contractor to cease and desist from violating a provision of
this chapter.
(D) Upon presentation to the court of common pleas by the
department of an affidavit for nonpayment of an administrative penalty
under a citation which is a final order or a civil penalty assessed by the
board pursuant to subsection (C), the court shall issue an order for
judgment to be filed in the office of the clerk of court.
(E) A license or certificate that is canceled by the department or
revoked by the board must be returned to the department within fifteen
days of notification by the department.
(F) No sooner than one year after revocation of a license or
certificate by the board, the entity or individual who held that license or
certificate may apply for another. The applicant must meet all
requirements for initial licensure or certification and must appear before
the board to present evidence that his practice will not unreasonably
endanger the public.
(G) If a license is canceled by the department, the licensee must
apply for initial licensure.
(H) Work in progress may be completed by the licensee if the
licensee's license is revoked or suspended; however,
(1) no new work may be bid or started after revocation or
suspension of a license upon proper notification by the department,
(2) unless otherwise directed by the board, the revocation,
suspension, or restriction of a license or certificate does not become
effective until the tenth day following the delivery to the licensee or
qualifying party of a written decision of the board. Service of a petition
for a review of the decision does not stay the board's decision pending
completion of the appellate process in accordance with the Administrative
Procedures Act.
(I) Where a licensee's business is dissolved for whatever reason,
that license must be canceled by the department.
(J) The board may revoke, suspend, or restrict an individual license
classification or subclassification without effect to other license
classifications or subclassifications.
Section 40-11-120. In addition to the sanctions the board may
impose against a person pursuant to this chapter, the board may take
disciplinary action against a person as provided for in Section 40-1-120.
Section 40-11-130. (A) The department may refuse to issue a
license or certificate to an applicant who:
(1) has failed to meet the minimum qualifications required by this
chapter or regulations promulgated under this chapter;
(2) has had a license or certificate denied, suspended, revoked,
or otherwise been disciplined;
(3) has engaged in contracting without a valid license as required
under this chapter;
(4) has submitted a bid without a valid license when one is
required by law;
(5) has committed an act which would be grounds for
disciplinary action under this chapter;
(6) has submitted false or misleading information;
(7) has engaged in conduct which demonstrates bad faith,
dishonesty, untrustworthiness, or incompetence in business or the
profession;
(8) has aided or abetted an entity in the violation of a provision
of this chapter or a regulation promulgated under this chapter;
(9) has been convicted in a court of competent jurisdiction of this
or any other state, district, or territory of the United States, or of a foreign
country of the offense of forgery, embezzlement, obtaining money under
false pretenses, theft, extortion, or conspiracy to defraud or other like
offense, has been convicted of a felony or a crime involving moral
turpitude, or pled nolo contendere to any such offense;
(10) has an outstanding monetary judgment related to
construction.
(B) A license or certificate may be denied to an applicant:
(1) for a minimum of one year after the date of revocation of a
similar professional license or certificate issued by this State or any other
state or jurisdiction;
(2) who is presently under suspension by a professional licensing
entity in this or any other state or jurisdiction;
(3) who has unresolved complaints or charges pending against
him before this or any other professional licensing board in this or any
other state.
Section 40-11-140. A license may be denied based on a person's
prior criminal record only as provided in Section 40-1-150.
Section 40-11-150. A licensee under investigation for a violation
of this chapter or a regulation promulgated under this chapter voluntarily
may surrender the license in accordance with Section 40-1-150.
Section 40-11-160. A person aggrieved by a final action of the
board may seek review of the decision in accordance with Section
40-1-160.
Section 40-11-170. A person found in violation of this chapter or
regulations promulgated under this chapter may be required to pay costs
associated with the investigation and prosecution of the case in
accordance with Section 40-1-170.
Section 40-11-180. All costs, fees, and fines provided in this
chapter, except examination fees, must be paid to and collected by the
department in accordance with and are subject to the collection and
enforcement provisions of Section 40-1-180.
Section 40-11-190. Investigations and proceedings conducted
under this chapter are confidential and all communications are privileged
as provided in Section 40-1-190.
Section 40-11-200. (A) A person who practices or offers to
practice in this State in violation of this chapter or who knowingly
submits false information for the purpose of obtaining a license is guilty
of a misdemeanor and, upon conviction, must be imprisoned not more
than one year or fined not more than five thousand dollars.
(B) It is a violation of this chapter for an awarding authority, owner,
contractor, or an agent of an authority, owner, or contractor to consider a
bid, sign a contract, or allow a contractor to begin work unless the bidder
or contractor has first obtained the licenses required by this chapter. Bids
or contracts submitted by contractors may not be reconsidered or
resubmitted to an awarding authority, contractor, or owner if the
contractor was not properly licensed at the time the initial bid or contract
was submitted.
(C) Charges under this section may be preferred by the board by
delivering evidence of a violation to a solicitor or a magistrate having
jurisdiction.
(D) Upon conviction under this section, the fines and assessments
imposed by a court must be administered pursuant to Sections 14-1-205,
14-1-206, 14-1-207, 14-1-208, and 14-1-209.
Section 40-11-210. The department, on behalf of the board and in
accordance with Section 40-1-120, may petition an administrative law
judge, in the name of the State, for injunctive relief against a person
violating this chapter.
Section 40-11- 230. (A) To qualify for certification as a qualifying
party, an applicant must:
(1) submit a completed application on a form approved by the
board and pay all applicable examination fees to the examination
provider;
(2) submit proof of having attained a grade of seventy percent or
better on a technical examination where required for each classification
or subclassification of licensure applied for; and
(3) attain a grade of seventy percent or better on an examination
of South Carolina law regulating general and mechanical contracting.
An individual may only take an examination in a license
classification or subclassification two times in a twelve-month period and
thereafter only once in six months.
An individual may take an examination and be issued a certificate in
any license classification or subclassification regardless of their current
place of employment.
Upon fulfillment of all requirements of this subsection, the
department shall issue a qualifying party a certificate which shall include
the individual's full name, certificate number, and classifications or
subclassification for which the individual is certified.
An applicant who has not been certified as a qualifying party for four
or more consecutive years must take and pass the technical or Code of
Laws examination, or both, as required by the board.
An individual may only serve as qualifying party for one licensee
with the exception as provided in subsection (C).
(B) To become designated by an entity as a primary qualifying
party, an individual must:
(1) hold a valid certificate issued pursuant to this chapter;
(2) submit an affidavit verifying employment from former or
current employers for whom the applicant was employed full-time for at
least two years within the previous five years in the license classification
or subclassification for which application is made or submit additional
proof of employment experience as approved by the board;
(3) submit proof of full-time employment in a responsible
management position by the entity for whom the applicant will be the
primary qualifying party.
A primary qualifying party may not take other employment that
would conflict with the duties as primary qualifying party or diminish the
ability to adequately supervise work performed by the licensee.
An individual desiring to be certified and serve as a primary
qualifying party for a license group one, two, or three general contractor
licensed pursuant to Section 40-11-410(1) must pass either the limited
building contractor examination or the unlimited general contractor
examination. Structures built by licensees for which the primary
qualifying party has taken and passed the limited building contractor
examination are restricted to three stories in height.
An individual desiring to be certified and serve as a primary
qualifying party for a license group four or five general contractor
licensed pursuant to Section 40-11-410(1) must pass the unlimited general
contractor examination.
When a primary qualifying party ceases to serve as the primary
qualifying party for a licensee, the licensee and the primary qualifying
party shall notify the department in writing within fifteen days of the
disassociation. If the licensee notifies the department within the
prescribed time, the license remains in good standing for ninety days from
the date the department receives notice of the disassociation. Failure to
notify the department within fifteen days of a primary qualifying party's
disassociation results in automatic license and certificate cancellation.
If, after properly notifying the department of disassociation, the
licensee fails to designate a replacement primary qualifying party pursuant
to the requirements of this chapter within ninety days, the department
shall suspend the licensee's license until a primary qualifying party is
designated pursuant to the requirements of this chapter.
(C) If a qualifying party desires to serve as primary qualifying party
for two entities, both entities must engage in business from the same
physical location. The qualifying party must:
(1) be involved in the operation of both entities on a daily basis;
(2) derive a livelihood from the operation of both entities;
(3) have ownership in both entities with at least fifty percent
ownership in one of the entities.
(D) Building officials or other individuals who have or are able to
meet the requirements of a qualifying party and are employed by an
unlicensed entity that is actively associated with the construction industry
may retain qualifying party status.
Section 40-11-240. (A) To qualify for licensure, an entity must:
(1) be organized or registered under applicable South Carolina
law as a sole proprietorship, partnership, limited liability partnership,
limited liability company, or a domestic or foreign corporation;
(2) have a certified qualifying party in full-time employment in
a responsible management position; and
(3) meet all requirements for licensure as provided in this
chapter.
(B) To qualify for a license, an entity must submit:
(1) a completed application on a form approved by the board;
(2) all required fees;
(3) a detailed statement of current financial condition as required
by this chapter;
(4) reference from a bank or other financial institution on a form
as prescribed by the department;
(5) the name and certificate number of the primary qualifying
party for each classification or subclassification for which a license is
desired;
(6) proof that the entity's primary qualifying party in each
classification or subclassification is an employee in a responsible
management position; and
(7) all documentation required by the department pursuant to the
requirements of this chapter.
(C) A licensee may list additional qualifying parties.
(D) A change of an entity's name, organizational status, or federal
employer identification number must be reported to the department within
fifteen days. Failure to do so results in license cancellation fifteen days
from the date of change and requires the new entity to submit an initial
application and meet all requirements for licensure.
Section 40-11-250. (A) All licenses may be renewed biennially.
A licensee shall apply to the department for license renewal by the
expiration date on a form approved by the board. Renewal applications
not postmarked by the expiration date result in a lapsed license. An entity
which fails to renew and which continues to engage in construction is
practicing without a license and is subject to the penalties prescribed in
this chapter.
(B) A license which has lapsed may be renewed within ninety days
from date of expiration by filing a renewal application and upon payment
of renewal and late fees. An entity whose license is lapsed for failure to
renew must submit an application and meet all qualifications for initial
licensure to engage in construction.
Section 40-11-260. (A) An applicant for a general contractor's
license or a general contractor's license renewal who performs or offers
to perform contracting work for which the total cost of construction is
greater than $5,000.00 and an applicant for license group revisions must
provide an acceptable financial statement with a balance sheet date no
more than twelve months before the date of the relevant application
showing a minimum net worth for each license group as follows:
(1) Group One
(a) bids and jobs not to exceed $30,000.00 per job;
(b) required net worth of $6,000.00;
(c) on initial application, an owner-prepared financial
statement with an affidavit of accuracy;
(d) on renewal, an owner-prepared financial statement with an
affidavit of accuracy;
(2) Group Two
(a) bids and jobs not to exceed $100,000.00 per job;
(b) required net worth of $20,000.00;
(c) on initial application, an owner-prepared financial
statement with an affidavit of accuracy;
(d) on renewal, an owner-prepared financial statement with an
affidavit of accuracy;
(3) Group Three
(a) bids and jobs not to exceed $350,000.00 per job;
(b) required net worth of $70,000.00;
(c) on initial application, a financial statement compiled by a
licensed certified public accountant or a licensed public accountant in
accordance with Generally Accepted Accounting Principles (GAAP),
including all disclosures required by GAAP;
(d) on renewal, a financial statement compiled by a licensed
certified public accountant or a licensed public accountant in accordance
with GAAP, including all disclosures required by GAAP;
(4) Group Four
(a) bids and jobs not to exceed $750,000.00 per job;
(b) required net worth of $150,000.00;
(c) on initial application, a financial statement compiled by a
licensed certified public accountant or a licensed public accountant in
accordance with GAAP, including all disclosures required by GAAP;
(d) on renewal, a financial statement compiled by a licensed
certified public accountant or a licensed public accountant in accordance
with GAAP, including all disclosures required by GAAP;
(5) Group Five
(a) bids and jobs unlimited;
(b) required net worth of $250,000.00;
(c) on initial application, a financial statement audited by a
licensed certified public accountant or a licensed public accountant in
accordance with GAAP, including all disclosures required by GAAP;
(d) on renewal, a financial statement reviewed by a licensed
certified public accountant or a licensed public accountant in accordance
with GAAP, including all disclosures required by GAAP;
(B) An applicant for a mechanical contractor's license or a
mechanical contractor's license renewal who performs or offers to perform
contracting work for which the total cost of construction is greater than
five thousand dollars, and an applicant for license group revisions must
provide an acceptable financial statement with a balance sheet date no
more than twelve months before the date of the relevant application
showing a minimum net worth for each license group as follows:
(1) Group One
(a) bids and jobs not to exceed $17,500.00 per job;
(b) required net worth of $3,500.00;
(c) on initial application, an owner-prepared financial
statement with an affidavit of accuracy;
(d) on renewal, an owner-prepared financial statement with an
affidavit of accuracy;
(2) Group Two
(a) bids and jobs not to exceed $30,000.00 per job;
(b) required net worth of $6,000.00;
(c) on initial application, an owner-prepared financial
statement with an affidavit of accuracy;
(d) on renewal, an owner-prepared financial statement with an
affidavit of accuracy;
(3) Group Three
(a) bids and jobs not to exceed $50,000.00 per job;
(b) required net worth of $10,000.00;
(c) on initial application, a financial statement compiled by a
licensed certified public accountant or a licensed public accountant in
accordance with Generally Accepted Accounting Principles (GAAP),
including all disclosures required by GAAP;
(d) on renewal, a financial statement compiled by a licensed
certified public accountant or a licensed public accountant in accordance
with GAAP, including all disclosures required by GAAP;
(4) Group Four
(a) bids and jobs not to exceed $125,000.00 per job;
(b) required net worth of $25,000.00;
(c) on initial application, a financial statement compiled by a
licensed certified public accountant or a licensed public accountant in
accordance with GAAP, including all disclosures required by GAAP;
(d) on renewal, a financial statement compiled by a licensed
certified public accountant or a licensed public accountant in accordance
with GAAP, including all disclosures required by GAAP;
(5) Group Five
(a) bids and jobs unlimited;
(b) required net worth of $100,000.00;
(c) on initial application, a financial statement audited by a
licensed certified public accountant or a licensed public accountant in
accordance with GAAP, including all disclosures required by GAAP;
(d) on renewal, a financial statement reviewed by a licensed
certified public accountant or a licensed public accountant in accordance
with GAAP, including all disclosures required by GAAP;
(C) In reviewing an entity's balance sheet to determine the net worth
of the applicant or licensee, the board may consider:
(1) deviations from the standard accountant's report;
(2) notes to the financial statement;
(3) additional financial information submitted by the applicant or
licensee for renewals;
(4) personal financial statements of an entity's principals for an
entity with less than two year's operating experience.
(D) If a licensee desires to change to a higher license group as
established in this section, the licensee must meet the financial statement
and net worth requirements in the higher license group number as required
in initial application.
(E) If the board has reasonable cause to believe that an entity has
not maintained the minimum net worth for its group, the board may order
the entity to submit additional financial information, and, if appropriate,
may modify the entity's license to reflect the appropriate limitation group.
(F) Contractors licensed before April 1, 1999, must be licensed in
the new group closest to their existing limitations until their license
renewal date, at which time they must meet the financial requirements for
license renewal set forth in this section.
Section 40-11-270. (A) A licensee is confined to the limitations
of the licensee's license group and license classifications or
subclassifications as provided in this chapter.
(B) An entity may apply for and be licensed in more than one
classification or subclassification if all qualifications for licensure
prescribed by this chapter have been met. An applicant may apply for a
license in more than one classification or subclassification on the same
application form.
(C) Licensees may utilize the services of unlicensed subcontractors
to perform work within the limitations of the licensee's license group and
license classification or subclassification; provided, the licensee provides
supervision. The licensee is fully responsible for any violations of this
chapter resulting from the actions of unlicensed subcontractors
performing work for the licensee.
Section 40-11-280. A licensee desiring a change in license
classification or subclassification or license group shall apply for revision
on a form approved by the board. Existing bidding limitations remain in
effect until the revision has been approved by the department. The board
may assess a penalty authorized by law against a licensee who undertakes
or offers to undertake an improvement exceeding the limitations of the
licensee's group.
Section 40-11-290. The board may grant a license or certificate to
an applicant holding a license or certificate in good standing in another
state whose requirements for licensure and certification are equal to or
greater than those required by this chapter if the board has authorized an
exam waiver agreement with the State. An applicant may exempt the
technical examination required for certification if the applicant can verify
passing an examination in another state which is essentially the same as
the examination required by the department regardless of the absence of
a reciprocal agreement with that state. An applicant for certification or
licensure under this section may be required to pass the South Carolina
Code of Laws examination and must comply with all other licensing and
certification requirements of this chapter.
Section 40-11-300. (A) It is unlawful for an owner, a construction
manager, a prime contractor, or another entity with contracting or hiring
authority on a construction project to divide work into portions so as to
avoid the financial or other requirements of this chapter as it relates to
license classifications or subclassifications or license groups, or both. The
total cost of construction must be used to determine the appropriate
license group for a project.
(B) An entity or individual engaging in general or mechanical
construction on a project without the required license or certificate must
immediately withdraw from the construction project and may not act as
a subcontractor on that construction project.
Section 40-11-310. No entity or employee of an entity who has the
responsibility to regulate, inspect, approve, or certify construction shall
engage in the construction of a project that is subject to regulation or
ownership by that entity. This section does not apply to a member of the
board when performing construction subject to this chapter or to
contractors who are also performing construction management services
for an owner.
Section 40-11-320. (A) A construction manager shall hold a South
Carolina license in one or more of the following professional
classifications:
(1) the general or mechanical contractor license classification and
license group that would otherwise be applicable to a sole prime
contractor working on the construction project;
(2) a registered engineer pursuant to Chapter 21 of this title who
meets the financial requirements set forth in Section 40-11-260 that would
otherwise apply to a sole prime contractor working on the construction
project. The proper financial statement must be submitted at any time
when requested by the board. Failure to submit a proper financial
statement is considered a violation of this chapter;
(3) An architect pursuant to Chapter 3 who meets the financial
requirements set forth in Section 40-11-260 that would otherwise apply
to a sole prime contractor working on the construction project. The
proper financial statement must be submitted at any time when requested
by the board. Failure to submit a proper financial statement is considered
a violation of this chapter.
(B) An architect or engineer licensed in South Carolina who is
monitoring the execution of design plans or who is performing as an
on-site representative for construction quality control or quality assurance,
or both, for a project owner is not a construction manager for the purposes
of this section.
(C) An entity acting as a construction manager shall file a letter with
the department designating one license being used to qualify for the
practice of construction management pursuant to the requirements of this
chapter. Complaints filed against construction managers who have
qualified themselves as architects or engineers must be referred by the
department to the appropriate board having jurisdiction over them. Those
boards may impose disciplinary action and civil penalties as set forth in
this chapter, or as otherwise provided by law. All other complaints filed
against construction managers with a general contractor's license
designation must be heard by the board and disciplinary action must be
brought pursuant to this chapter. An entity's authority to practice as a
construction manager may be revoked or suspended without other effect
to the license held by that entity.
(D) The authority to assume the role of construction manager is
granted to an entity holding a general or mechanical contractor's license
or an architect's license or engineer's registration pursuant to the laws of
this State. This authority does not permit architects and engineers to
assume the role of general or mechanical contractors as defined in Section
40-11-20 unless properly licensed pursuant to this chapter. Construction
managers may not perform design work themselves unless properly
licensed as an architect or professional engineer. Entities performing
construction themselves or holding construction contracts in their own
name must be treated as general contractors or mechanical contractors, as
appropriate, rather than construction managers for the purposes of this
chapter, and must be licensed pursuant to the requirements of this chapter
to perform that work. Construction managers may hire or terminate the
various design professionals and prime contractors with the direction and
approval of an owner.
Section 40-11-330. Two or more licensed contractors may
combine bids and submit a 'Joint Venture Bid' if the contract does not
exceed the highest license group limitations of the members in the joint
venture. An unlicensed contractor may not be a party to a joint venture.
Section 40-11-340. An entity licensed under the classifications or
subclassifications in Sections 40-11-410(1), (2), or (3) may act as a sole
prime contractor on a project if forty percent or more of the work as
measured by the total cost of construction falls under one or more of the
licensee's license classifications or subclassifications. An entity licensed
under the classifications or subclassifications in Section 40-11-410(4) and
(5) may act as sole prime contractor if fifty-one percent or more of the
work falls under one or more of the licensee's license classifications or
subclassifications.
Section 40-11-350. A building official, or other authority charged
with issuing building or other similar permits, of a county, municipality,
or subdivision of a county or municipality shall refuse to issue a permit
for an undertaking which would classify the applicant as a contractor
under this chapter unless the applicant has furnished evidence that the
applicant is either licensed as required by this chapter or exempt from the
requirements of this chapter. A building official, or other authority
charged with issuing building or other similar permits, shall report to the
department the name and address of an entity believed to have violated
this chapter by bidding or contracting for work which is regulated under
this chapter.
Section 40-11-360. (A) This chapter does not apply to:
(1) an entity which installs fire sprinkler systems if the entity is
licensed under Chapter 45 of Title 23, or burglar and fire alarm systems
if the entity is licensed under Chapter 79 of Title 40;
(2) The installation of finished products, materials, or articles of
merchandise that are not fabricated into and do not become a permanent
fixed part of the structure. Work requiring licensure must be installed by
a licensed contractor;
(3) Construction, alteration, improvement, or repair carried on
within the limits of a site, the title to which is in the name United States
of America or with respect to which federal law supersedes this chapter;
(4) Contractors performing construction work for the South
Carolina Department of Transportation pursuant to that department's
prequalification requirements with the exception of public/private
partnerships performing work pursuant to Section 57-3-200;
(5) An owner of residential property who improves the property
or who builds or improves structures or appurtenances on the property if
he does the work himself, with his own employees, or with licensed
contractors; provided, that the structure, group of structures, or
appurtenances, including the improvements, are intended for the owner's
sole occupancy or occupancy by the owner's family and are not intended
for sale or rent, and provided, further, that the general public does not
have access to this structure. In an action brought under this chapter,
proof of the sale or rent or the offering for sale or rent of the structure by
the owner-builder within two years after completion or issuance of a
certificate of occupancy is prima facie evidence that the project was
undertaken for the purpose of sale or rent and is subject to the penalties
provided in this chapter. As used in this item, 'sale' or 'rent' includes an
arrangement by which an owner receives compensation in money,
provisions, chattel, or labor from the occupancy, or the transfer of the
property or the structures on the property;
(6) An owner of nonowner-occupied property who improves the
property or who builds or improves structures of less than five thousand
square feet or other appurtenances on the property, either by himself or
with the owner's employees, if all structural and mechanical work is
performed by licensed contractors regardless of the cost of construction
and if the property is not sold for two years after completion of the
improvements. For purposes of this item, 'structural' means foundation,
pier, load-bearing partition, perimeter wall, internal wall exceeding ten
feet in height, roof, floor, and any other work deemed by the board to be
structural. 'Mechanical' means work described in Section 40-11-410(5);
(7) An owner constructing a wood-framed farm structure with
less than five thousand square feet of floor space and not used for human
habitation or office facilities;
(8) Public owners performing all or a portion of any work on a
project themselves as long as the work performed falls within the
limitations of a License Group 2 General Contractor or a License Group
3 Mechanical Contractor, and so long as the public owner employs a
certified qualifying party in the appropriate classification.
(B) The board shall distribute posters to each building permit office
in the State requesting that the posters be placed in a conspicuous location
to be read by applicants. The posters shall state the following:
'The South Carolina Contractor's Licensing Act requires general and
mechanical construction to be performed by licensed contractors. Both
the owner and the contractor are subject to penalties for violations of the
law. Work performed on projects is exempt from this requirement only
for the following reasons:
(1) The total cost of construction is less than $5,000.00;
(2) The property will be used solely by the owner and his
immediate family as a residence for a period of at least two years;
(3) For nonresidential projects, work performed by the owner is
limited to nonstructural and nonmechanical portions of the project, or;
(4) The project is a wood-framed farm building less than five
thousand square feet used solely for livestock or storage.
All other work must be performed by properly licensed contractors.
All persons directly employed by the owner to perform work on the
project are subject to state and federal laws covering occupational safety,
family and medical leave, workers' compensation, social security, income
tax withholding, and minimum wage requirements. Work performed must
comply with all applicable laws, ordinances, building codes, and zoning
regulations.'
Section 40-11-370. (A) It is unlawful to use the term 'licensed
contractor' or to perform or offer to perform general or mechanical
construction without first obtaining a license as required by this chapter.
(B) It is unlawful to engage in construction under a name other than
the name which appears on the license issued pursuant to this chapter.
(C) An entity which does not have a valid license as required by this
chapter may not bring an action either at law or in equity to enforce the
provisions of a contract.
Section 40-11-380. A licensee who, voluntarily or involuntarily,
is subjected to any provision of the laws of bankruptcy shall notify the
board within fifteen days and provide any and all information pertinent to
the bankruptcy that the board may require.
Section 40-11-390. An entity which, as of April 1, 1999, is
engaging in general or mechanical construction without a license but in
compliance with prior law, and which has been doing so for two years,
shall receive a Group 1 license upon application and demonstration of
financial status.
Section 40-11-400. The department shall issue qualifying party
certificates to an individual serving as a qualifying party. The department
shall transfer qualifying party certification under the license
classifications or subclassifications in effect as of March 31, 1999, to the
license classifications or subclassifications created by this chapter so that
no qualifying party shall have to meet additional requirements to continue
certification under a particular license classification or subclassification.
A certification transferred pursuant to this section remains in effect until
it is canceled, revoked, or expires. This section does not allow a
qualifying party to qualify for certification in a license classification or
subclassification based on ancillary work included under the building
license classification or subclassification. Qualifying party certification
may be transferred only for those activities which are specifically
included in both.
Section 40-11-410. The following license classifications are in
effect:
(1) 'General Contractors-Building' which includes commercial,
industrial, institutional, modular, and all other types of building
construction, including residential structures. This license classification
includes all work under the subclassifications of Wood Frame
Structures-Class II, Interior Renovation, Masonry, Pre-engineered Metal
Buildings, General Roofing, and Structural Shapes.
Licensees under this classification may perform ancillary work,
including grading, associated with the building or structure which the
licensee has been engaged to construct. However, if a project includes
work performed under a Mechanical Contractor subclassification or any
of these license subclassifications, the licensee must have a license for this
work or use a contractor licensed in the appropriate license classification
or subclassification to perform the work: Swimming Pools, Bridges,
Boring and Tunneling, Water and Sewer Lines, Pipe Lines, Railroad
Lines, Specialty Roofing, Marine, Water and Sewer Plants, and Asphalt
Paving.
(2) 'General Contractors-Highway' which includes work under these
subclassifications:
(a) 'Bridges' which include bridge construction and repairs,
railroad trestles and overpasses, and work under the subclassifications of
Boring and Tunneling, Concrete, Marine, and Railroad Lines.
(b) 'Concrete Paving' which includes the construction,
rehabilitation and repair of concrete streets, roads, highways, driveways,
parking lots, airport runways and aprons, and concrete work incidental
thereto including, but not limited to, sidewalks, curbs, medians, and
barrier walls. This subclassification also includes work under the
subclassification of Grading.
(c) 'Asphalt Paving' which includes asphalt paving, repairs and
rehabilitation of streets, roads, highways, parking lots, airport runways
and aprons, concrete including, but not limited to, curbs, gutters, and
concrete or asphalt paving of storm sewers, and includes paving with
sealers, geotextile fabrics, slurry seals, and surface treatments incidental
thereto. This subclassification also includes work under the
subclassification of Grading.
(d) 'Grading' which includes the soil preparation and
rehabilitation of streets, roads, highways, railroad beds, building sites,
parking lots, and storm sewers. This subclassification also includes work
under the subclassification of Highway Incidental.
(e) 'Highway Incidental' which includes highway work for
grooving, milling, rehabilitating, and installing guardrails, gutters,
highway signs, pavement marking, and painting.
(3) 'General Contractors-Public Utility' which includes work under
these subclassifications:
(a) 'Pipe Lines' which includes the construction, installation,
alteration, maintenance, and repair of systems for the transmission or
distribution of petroleum fuels, petroleum distillates, natural gas,
chemicals, and slurries through pipeline from one station to another
including all excavating, trenching, backfilling and installation of booster
stations and equipment and installation and replacement of tanks
connected to the system. This subclassification does not include the
piping and tanks for the dispensing of any petroleum product at retail.
(b) 'Water and Sewer Plants' which includes all classifications
and subclassifications necessary for the construction of water treatment
and wastewater treatment facilities. However, if a project includes work
to be performed under any of these license subclassifications, the licensee
must either have a license to perform this work or use a contractor
licensed in the appropriate license classification or subclassification to
perform the work: Bridges, Railroad Lines, Specialty Roofing, and
Mechanical work.
(c) 'Water and Sewer Lines' which includes construction work on
water mains, water service lines, water storage tanks, sewer mains, sewer
lines, lift stations, pumping stations and appurtenances to water storage
tanks, lift stations, pumping stations, pavement patching, backfill, and
erosion control as a part of construction, and which includes connection
at the building of all lines to the appropriate lines contained in commercial
structures, installation and repair of a project involving manholes, the
laying of pipe for storm drains and sewer mains, all necessary
connections, and excavation and backfilling, and concrete work incidental
thereto.
Contractors in this license subclassification in license groups three,
four, and five may install fire protection sprinkler system underground
mains to a flanged outlet 1'-0" above the finished floor in
compliance with National Fire Protection Association Standard 24.
However, shop drawings must be submitted and approved by the State
Fire Marshal with a copy of the approved drawings going to the licensed
fire sprinkler contractor. Flushing and testing certificates must be
delivered to the authority having jurisdiction and the performing licensed
fire sprinkler contractor performing. General contractors in this license
subclassification may not engage in water and sewer line work from the
right-of-way to a residential structure unless the entity is a subcontractor
to a licensee holding a plumbing subclassification.
(4) 'General Contractors-Specialty' which includes work under these
subclassifications:
(a) 'Boring and Tunneling' which includes the construction of
underground or underwater passageways with diameters in excess of
ninety-six inches or lengths in excess of three hundred fifty feet by
digging or boring through and under the earth's surface, including the
bracing and compacting of passageways to make them safe for the
purpose intended. This subclassification includes the preparation of
ground surfaces at points of ingress and egress. Underground structures
less than ninety-six inches in diameter or less than three hundred fifty feet
in length are considered normal excavation.
(b) 'Concrete' which includes all work in connection with
concrete forming and placing; assembling of forms, molds, slipforms and
pans; centering, trenching, excavating, backfill, and grading in connection
with concrete construction; construction of sidewalks, driveways, curbs,
medians, and barrier walls; and installing of embedded items essential to
or comprising an integral part of concrete or concrete construction
including reinforcing elements and accessories including, but not limited
to, concrete chimneys, floors, piers, and foundations when using concrete
rebar and other materials common to the concrete industry. This
subclassification does not include the General Contractor-Highway-
Bridge license subclassification or the construction of streets, roads,
parking lots, and highways.
(c) 'Interior Renovation' which includes installing, remodeling,
renovations, and finishes of acoustical ceiling systems and panels,
load-bearing and nonload-bearing drywall partitions, lathing and
plastering, flooring (excluding carpet) and finishing, interior recreational
surfaces, window and door installation, and installation of fixtures,
cabinets, and millwork; and which also includes fireproofing, glass,
glazing, insulation, lining, painting, partitions, sandblasting, interior wall
covering, and waterproofing. This subclassification does not include
alterations to load-bearing portions of a structure.
(d) 'Marine' which includes all water activities to construct
seawalls, bulkheads, docks, piers, wharves, and other water structures
including, but not limited to, pile driving, boat slips, and boardwalks.
Licensees under this classification may perform ancillary work including
fill and grading. This license subclassification does not include structures
within the scope of the General Contractor-Building classification.
(e) 'Masonry' which includes the installation, with or without the
use of mortar or adhesives, of brick, concrete block, gypsum partition tile,
pumice block, fire clay products, rough cut and dressed stone, marble
panels or slate units, structural glazed tile or block, glass brick or block,
solar screen tile or block, or other units and products common to the
masonry industry.
(f) 'Pre-engineered Metal Buildings' which includes the
construction of pre-engineered metal buildings not exceeding forty feet
in width with no single structural span exceeding forty feet in length, and
consisting of no more than a concrete floor slab, metal frame, metal roof,
metal sidewalls, and building insulation.
(g) 'Railroad Lines' which includes the installation and repair of
railroad lines, including setting ties, tie plates, rails, rail connectors, frogs,
switch plates, switches, and signal markers. This subclassification does
not include grading, trestles, or overpasses.
(h) 'General Roofing' which includes the installation and repair
of roofs and roof decking on commercial, industrial, and institutional
structures requiring materials that form a water-tight and weather-resistant
surface. This license subclassification is limited to shingles, clay and
concrete tile, slate, wood-shake roofing, metal roofing, and asphalt-rolled
roofing.
(i) 'Specialty Roofing' which includes the installation and repair
of roofs and roof decking on commercial, industrial, and institutional
structures requiring materials that form a water-tight and weather-resistant
surface. This license subclassification includes all work under the
General Roofing license subclassification and other types of roofing not
specifically included in the general roofing license subclassification.
(j) 'Structural Framing' which includes the installation, repair, or
alteration of metal or composite structural members for buildings or
structures, including riveting, welding, and rigging. This subclassification
also includes work under the subclassification of Structural Shapes.
(k) 'Structural Shapes' which includes the installation, repair, or
alteration of metal or composite shapes, tubing, pipes and bars, including
minor field fabrication as may be necessary.
(l) 'Swimming Pools' which includes the construction, service,
and repair of all commercial and institutional swimming pools and spas,
including concrete, gunite, plastic, vinyl-lined, and fiberglass pools and
spas; pool decks, walkways, tiling, and coping; and the installation of all
equipment, including pumps, filters, and chemical feeders, water and gas
service lines from the point of service to the pool equipment, wiring from
the pool equipment to the first readily accessible disconnect, pool piping,
fittings, backflow prevention devices, waste lines, and other integral parts
of a swimming pool or spa.
(m) 'Wood Frame Structures' which include framing, roofing,
siding, or flooring for wood-framed structures in excess of five thousand
feet used for housing livestock, storage, or processing, when such
structures are not used for habitation or office facilities.
(n) 'Public Electrical Utility' which includes the installation,
replacement, alteration, and repair of transmission lines on or off public
rights-of-way, including erection of poles, guying systems, tower line
erection, street lighting, and outside lighting of all voltages and all
underground systems, including ducts for signal communication and
similar installations, transformers, circuit breakers, capacitors, primary
metering devices, and other related equipment not used in connection with
this subclassification. A contract that contains electrical work above fifty
volts must be performed by a licensed public utility-electrical or
mechanical-electrical contractor. This subclassification does not cover
athletic field lighting, stadium lighting, or lighting which is not on public
easements or rights-of-way.
(5) 'Mechanical Contractors' which includes work under these
subclassifications:
(a) 'Air Conditioning' which includes the installation,
replacement, alteration, and repair of air conditioning equipment and
systems which consist of a number of components necessary to produce
conditioned air for environmental heating or cooling, or both, within
buildings. Hot water or steam heating systems or components are not
included under this classification.
(b) 'Heating' which includes installation, replacement, alteration,
and repair of heating equipment and systems in buildings which require
the use of high or low pressure steam vapor or hot water including all
piping, ducts, and mechanical equipment within, adjacent to, or connected
with a building and the installation of necessary gas lines if any of this
equipment is gas-fired.
(c) 'Packaged Equipment' (air conditioning-heating packaged
equipment limited to twenty-five tons cooling and five hundred thousand
BTU/HR heating per unit) which includes the installation, replacement,
alteration, or repair of air conditioning equipment and systems which
consist of a number of components necessary to produce conditioned air
for environmental heating or cooling, or both, within buildings, including
types of heating systems and any size package equipment; and the
installation, alteration, and repair of ventilation systems, including duct
work, air filtering devices, water treatment devices, pneumatic or
electrical controls, or control piping; thermal and acoustical insulation,
vibration isolation materials and devices, liquid fuel piping and tanks,
water and gas piping from service and heating circuits and air handling
systems, including gas-fired furnaces and space heaters; and
factory-assembled single package units and split type direct expansion
equipment, including heat pumps. This subclassification does not include
installing, replacing, altering, or repairing hot water or steam heating
systems or components.
(d) 'Electrical' which includes the installation, alteration, or repair
of wiring-related electrical material and equipment used in the generating,
transmitting, or utilization of electrical energy less than six hundred volts,
including all overhead electrical wiring on public rights-of-way for signs
and street decorations and all underground electrical distribution systems
of less than six hundred volts serving private properties. This
subclassification also includes, but is not limited to, installing, altering,
and repairing, panels, controls, conductors, conduits, cables, devices,
plates, electric ceilings, control wiring; and electric heating, lighting
fixtures, lamps, general outside lighting, underground and overhead
feeder distribution systems for services, and related components or work
necessary to provide a complete electrical system and installing window
or through-the-wall air conditioning units not to exceed three HP or three
tons where no piping is necessary. Under this subclassification, general
outside lighting is limited solely to within property lines and not on public
easements or rights-of-way. A contract that contains electrical work
above fifty volts must be performed by a contractor licensed under this
subclassification or a licensed public electrical utility contractor. This
license subclassification includes installing, altering, and repairing all
lighting on private property, athletic fields, stadiums, parking lots, and the
design, installation, and servicing of fire alarm systems.
(e) 'Lightning Protection Systems' which includes installation,
replacement, alteration, or repair of necessary lightning protection
conduction, cables, rods, points, anchors, fastening devices, labels, ground
clamps, braces, and all related component parts necessary for a complete
lightning protection system.
(f) 'Plumbing' which includes the installation, replacement,
alteration, and repair of all plumbing including solar water heating when
performed solely within property lines and not on public easements or
rights-of-way except to make connections to water meters or sewer taps
as allowed by the utility owner; and the installation, alteration, and repair
of all piping, fixtures, and appliances related to water supply, including
pressure vessels and tanks, and excluding municipal or related water
supply systems; venting and sanitary drainage systems for all fluid and
semi-fluid and organic wastes; roof leaders; water-conditioning
equipment; piping and equipment for swimming pools; and installation of
a system of pipes, fittings, fixtures, drains, and all necessary component
parts upon the premises or in a building to supply water to buildings and
to convey sewage or other waste products from buildings. If this
equipment is gas-fired, the necessary gas lines may be installed under this
subclassification used in connection with this subclassification. Plumbing
contractors in license groups three, four, and five are not required to be
licensed under Chapter 45, Title 23 to install standpipe systems, including
water hose connections, water hose cabinets, and related branch lines if
the water hoses do not supply water to automatic fire protection
sprinklers.
(g) 'Pressure and Process Piping' which includes the installation,
maintenance, repair, alteration, or extension of a system of piping, tubing,
vessels, containers, pumps, apparatus, and appurtenances in connection
with pressure piping used for circulation, transporting, holding, or
processing of gas, vapor, fluid, liquid, semi-liquid, or any combination of
these. However, boilers, boiler piping, piping used to convey potable
water, sanitary sewage, liquefied petroleum, manufactured or natural gas
or refrigeration, air conditioning and comfort heating piping are not
included in this subclassification.
(h) 'Refrigeration' which includes the installation, replacement,
alteration, and repair of refrigeration equipment and systems used for
processing, storage, and display of food products and other perishable
commodities and commercial, industrial, and manufacturing processes
requiring refrigeration, excluding comfort air conditioning. This
subclassification also includes work on systems including related
equipment for temperature, safety, and capacity controls, thermal
insulation, vibration isolation materials and devices, water treatment
devices, construction and installation of walk-in refrigeration boxes,
liquid fuel piping and tanks, water and gas piping from equipment to
service connection, and testing and balancing of refrigeration equipment
and systems. An entity licensed under the air conditioning
subclassification may also do work under this subclassification.
Section 40-11-420. (A) Building permits, when required by law,
must be obtained by the sole prime contractor in the name appearing on
that entity's contractor's license.
(B) When there is more than one prime contractor working with a
construction manager, the building permit must be obtained by the
construction manager in the name appearing on that entity's professional
license, and the construction manager must list on the building permit
application the names and license numbers of all known licensed
contractors performing work on the project. The construction manager
must also be identified as such on the permit application by name, license
number, and type of license he holds.
(C) If there is more than one prime contractor and no construction
manager or if the owner is performing work pursuant to Section
40-11-360(A)(5),(6), or (7), the owner must obtain the building permit
and must list on the building permit application the name and license
number of all licensed contractors performing work on the project.
Section 40-11-430. If a provision of this chapter or the application
of a provision to a person or circumstance is held invalid, the invalidity
does not affect other provisions or applications of this chapter which can
be given effect without the invalid provision or application, and to this
end the provisions of the chapter are severable."
Time effective
SECTION 2. This act takes effect April 1, 1999.
Approved the 15th day of June, 1998.
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