If you want to secure your right to payment for the projects you work on, knowing your state’s lien laws is the first step. The confusing part is figuring out what the laws of your specific state actually are. We’re here to take away the complexity and confusion and give it to you straight. If you work in South Carolina and need to know the lien laws, this is the place for you. Here, we break down exactly what the state of South Carolina requires of you to properly file a valid lien and bond claim.
How to File a Valid Lien in South Carolina:
- The amount of a lien by a Place 2* Contractor or Material Supplier cannot be more than what the owner owes to the Place 1* Contractor when they receive notice of the Place 2* Contractor’s claim.
- The amount of a lien by a Place 3* and below Contractor or Material Supplier cannot be more than what the Place 1* Contractor owes the Place 2* Contractor when they receive notice of the Place 3* and below Contractor’s claim. The moral of this story: the sooner you send notice the better; the more money you will be entitled to.
- You must file your lien within ninety (90) days of the last work performed and/or materials supplied. You must send notice of the lien to the Owner.
- If you are a Contractor that is required to be licensed, you must file proof that you are licensed with the lien.
- You must file suit to enforce within six (6) months of the last time work was performed and/or materials supplied.
How to Have a Valid Bond Claim in South Carolina:
- Payment bonds are required on public projects of more than $50,000.
- Contractors in Place 3* and below must send notice of unpaid amounts to the Place 1* Contractor within ninety (90) days of the last time work was performed and/or materials supplied.
- Must file suit to enforce your bond claim within one (1) year of the last time work was performed and/or materials supplied.
If you work in South Carolina, learning the laws above is a necessary first step in protecting your right to payment. You deserve to be paid for your work, so file your liens the right way. If you’d like someone else to take care of filing your lien or bond claims, and do it the right way, contact a professional South Carolina lien lawyer who is experienced with construction law. Our sister company, The Cromeens Law Firm, has a lien and collections team ready to take care of it for you. Your business’s future relies on your ability to collect. Do the work to guarantee you never work for free.
*The “places” referenced in the rules above correlate to the Construction Food Chain Chart from Karalynn Cromeens’ book,
Quit Getting Stiffed. The chart can be found here to use when following these lien and bond rules.