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Cash itself is not illegal, but a contractor pushing cash because he wants to avoid a paper trail is a warning sign. Ask for a proper written contract and receipt regardless of how you pay. The name receiving your money should match the contractor or business identified in the agreement.
Yes. For a South Carolina residential specialty contractor, when the total project cost for labor and materials exceeds $5,000, a $5,000 surety bond must be on file. The threshold applies to the combined cost of labor and materials.
It can. If the individual qualifying the business is no longer associated with it, don’t assume the company’s authorization automatically continues. Verify that the business has current authorization and that the qualifying individual is properly associated with the company.
No. Don’t sign an incomplete contract. The price, scope of work, payment terms, contractor identity, and other important terms should be settled before you sign. A blank price or open ended provision gives you little protection if the contractor later fills in numbers you never agreed to.
You should know exactly who you are contracting with. The agreement should identify the legal business or contractor, address, contact information, and applicable South Carolina registration or license information. If the estimate is from one company but the contract or payment instructions identify another, get that resolved before paying.
If unexpected conditions require additional work, get the change in scope and price documented before authorizing it whenever possible. Have the roofer document what was discovered, what additional work is proposed, what it will cost, and who approved it.
Verify the contractor’s current registration, insurance, bond status where applicable, and the exact entity you are contracting with. Make sure the agreement clearly identifies each property, the work authorized at each location, pricing, payment terms, and change order procedures.
It is worth investigating. A mailbox alone does not prove fraud, but constantly changing contact information makes the company harder to hold accountable. Verify the registered business information, references, insurance, and registration before giving the contractor a substantial deposit.
Yes. For commercial construction covered by South Carolina’s contractor licensing rules, a contractor’s license is generally required when the total cost exceeds $10,000. The contractor also needs the appropriate classification for the work being performed.
No. Registration is only one part of vetting a contractor. Check references, previous work, insurance, registration status, business identity, complaints, contract terms, and payment arrangements. State registration does not mean the state recommends or guarantees the contractor.
Verify it directly with the insurance carrier or agent. Confirm the named insured matches the contractor you are hiring and that the policy is active for the project. Also remember that a surety bond and liability insurance are two different things.
The contract should clearly identify the party legally responsible for the work. If the registration belongs to one entity, the insurance to another, and the invoice to a third, stop and get an explanation before signing or paying.
Yes. State registration does not eliminate other applicable requirements. Depending on the project and location, permits, inspections, business requirements, and local building rules may still apply. Establish who is responsible for permits before work begins.
