South Carolina construction service contract template

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How South Carolina construction service contract Differ from Other States

  1. South Carolina requires residential builders and specialty contractors to be licensed by the SC Labor, Licensing and Regulation Board.

  2. Mechanic’s lien laws in South Carolina mandate strict notice and filing requirements to protect contractors’ payment rights.

  3. The state has unique retainage limits on public construction projects, typically restricting retainage to a maximum of 3.5%.

Frequently Asked Questions (FAQ)

  • Q: Is contractor licensing required for construction services in South Carolina?

    A: Yes. Most construction contractors must be licensed by the South Carolina Department of Labor, Licensing and Regulation.

  • Q: What should be included in a South Carolina construction service contract?

    A: Include scope of work, payment terms, deadlines, licenses held, dispute resolution, and lien rights in the contract.

  • Q: How can a contractor secure payment rights in South Carolina?

    A: Contractors should adhere to state lien laws, providing proper preliminary notices and timely filing mechanics’ liens if needed.

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South Carolina Construction Service Contract

This South Carolina Construction Service Contract (the “Agreement”) is made and entered into as of this [Date], by and between [Contractor Legal Name], a [State] [Entity Type, e.g., LLC], with its principal place of business at [Contractor Address], South Carolina, and holding South Carolina Contractor’s License Number [Contractor License Number] (“Contractor”), and [Owner Legal Name], residing at [Owner Address], South Carolina (“Owner”).

1. Project Description

Option A: The Contractor shall perform the following work (the “Work”): [Detailed Description of Work] at the following location (the “Project Site”): [Project Site Address].

Option B: The Work shall consist of the construction of [Type of Construction, e.g., single-family residence] at the Project Site. The detailed plans and specifications for the Work are attached hereto as Exhibit A and incorporated herein by reference. Reference is made to architectural/engineering drawings dated [Date] prepared by [Architect/Engineer Name]. The Work shall comply with all applicable building codes and zoning ordinances in [City/County], South Carolina.

2. Scope of Work

Option A: The Work includes, but is not limited to: [List of specific tasks, e.g., framing, electrical, plumbing].

Option B: The Work specifically excludes: [List of excluded tasks, e.g., landscaping, appliance installation].

3. Project Schedule

Option A: The Contractor shall commence the Work on or before [Start Date] and shall substantially complete the Work on or before [Completion Date], subject to extensions as provided herein.

Option B: The Project Schedule, including milestones for specific phases of the Work, is attached hereto as Exhibit B and incorporated herein by reference. Substantial Completion is defined as when the Work is sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or utilize the Project Site for its intended purpose. Final Completion is defined as when all Work is fully completed in accordance with the Contract Documents, including completion of the punch list.

4. Contract Price and Payment

Option A: Fixed Price. The Owner shall pay the Contractor a fixed price of [Dollar Amount] for the complete performance of the Work.

Option B: Cost-Plus. The Owner shall pay the Contractor the cost of the Work plus a fee of [Percentage or Fixed Amount].

The Contractor shall submit invoices to the Owner on a [Frequency, e.g., monthly] basis, supported by documentation of all costs incurred.

Option C: Payment Schedule. The Owner shall pay the Contractor according to the following payment schedule:

[Percentage or Dollar Amount] upon execution of this Agreement as a retainer.

[Percentage or Dollar Amount] upon completion of [Specific Milestone].

[Percentage or Dollar Amount] upon Substantial Completion of the Work.

[Percentage or Dollar Amount] upon Final Completion of the Work.

Retainage: Per South Carolina law (Section 29-6-30), retainage shall be withheld at a rate of [Percentage] until Substantial Completion.

All payments are subject to Owner's approval of the Contractor's invoices and the Contractor's compliance with the terms of this Agreement.

5. Change Orders

No changes to the Work shall be made without a written change order signed by both the Contractor and the Owner.

All change orders shall include a detailed description of the changes to the Work, the impact on the Contract Price, and the impact on the Project Schedule.

The Contractor shall submit a written proposal for any proposed change order within [Number] days of receiving a request from the Owner.

6. Permits and Compliance

The Contractor shall be responsible for obtaining all necessary building permits and other approvals required by [City/County], South Carolina.

All Work shall be performed in compliance with all applicable federal, state, and local laws, regulations, and building codes, including the South Carolina Building Code and Fire Code.

7. Insurance

The Contractor shall maintain the following insurance coverage at all times during the performance of the Work:

General Liability Insurance: [Dollar Amount] per occurrence.

Workers’ Compensation Insurance: As required by the South Carolina Workers’ Compensation Act.

Automobile Liability Insurance: [Dollar Amount] per occurrence.

Builder’s Risk Insurance: Covering the full value of the Work.

The Contractor shall provide the Owner with certificates of insurance evidencing the required coverage prior to commencement of the Work.

8. Subcontractors

The Contractor shall be responsible for the work of all subcontractors. All subcontractors must be licensed and insured as required by South Carolina law.

The Contractor shall obtain the Owner’s written approval prior to hiring any subcontractor.

9. Warranty

The Contractor warrants that all Work shall be performed in a good and workmanlike manner and free from defects for a period of one (1) year from the date of Substantial Completion, as required by South Carolina law.

The Contractor shall promptly repair or replace any defective Work that is discovered during the warranty period.

10. Indemnification

The Contractor shall indemnify and hold harmless the Owner from and against any and all claims, damages, losses, and expenses arising out of or relating to the Contractor’s performance of the Work, except to the extent caused by the Owner’s negligence or willful misconduct, as regulated by South Carolina law.

11. Termination

Option A: Termination for Convenience. The Owner may terminate this Agreement for convenience upon [Number] days’ written notice to the Contractor. In the event of termination for convenience, the Owner shall pay the Contractor for all Work performed and all costs reasonably incurred prior to the date of termination, plus reasonable profit and overhead.

Option B: Termination for Default. Either party may terminate this Agreement for default if the other party materially breaches this Agreement and fails to cure such breach within [Number] days after written notice thereof.

12. Dispute Resolution

Any disputes arising out of or relating to this Agreement shall be resolved through the following process:

First, the parties shall attempt to resolve the dispute through good-faith negotiation.

If the parties are unable to resolve the dispute through negotiation, they shall submit the dispute to mediation in [City/County], South Carolina, using a mediator mutually agreed upon by the parties.

If mediation is unsuccessful, the parties may pursue arbitration or litigation in the courts of South Carolina, with venue in [City/County], South Carolina.

13. Force Majeure

Neither party shall be liable for any delay or failure to perform its obligations under this Agreement to the extent that such delay or failure is caused by a force majeure event, including but not limited to acts of God, such as hurricanes, tornadoes, and floods, war, strikes, or other events beyond the reasonable control of the party.

The party affected by a force majeure event shall notify the other party in writing within [Number] days of the event and shall use commercially reasonable efforts to mitigate the effects of the event.

14. Mechanics' Lien Rights

The Contractor is entitled to lien rights under the South Carolina Mechanics’ Lien statute (Code Title 29, Chapter 5). The Contractor shall comply with all statutory notice requirements, including pre-lien notices. The Owner may request conditional and final lien waivers upon payment.

15. Notices

All notices required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally, sent by certified mail, return receipt requested, or sent by reputable overnight courier to the addresses set forth above.

16. Entire Agreement

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

17. Amendment

This Agreement may be amended only by a written instrument signed by both parties.

18. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of South Carolina.

19. Severability

If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

20. Licensing and E-Verify

The Contractor represents and warrants that it is properly licensed and in compliance with all applicable South Carolina licensing statutes, including the South Carolina Illegal Immigration Reform Act, and will utilize E-Verify to confirm work authorization for all employees.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

[Contractor Legal Name]

By: [Contractor Representative Name]

Title: [Contractor Representative Title]

[Owner Legal Name]

By: [Owner Representative Name]

Title: [Owner Representative Title]

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