South Carolina Business and Law Exam Guide: PSI Commercial Contractor Exam and S.C. Code Chapter 40-11

South Carolina Business and Law Exam at a Glance

• Questions: 50 scored. A few unscored experimental items may be added, and they use your time.
• Time: 125 minutes.
• Passing score: 35 correct (70%).
• Fee: $78, paid to PSI.
• Format: open book, with the NASCLA Contractors Guide, South Carolina 9th Edition.
• Retakes: unlimited within a 12-month period.
• Results: on screen as soon as you finish. If you fail, you get a diagnostic report of your strengths and weaknesses.

These facts come from the PSI South Carolina Commercial Contractor Candidate Information Bulletin, updated September 15, 2026. Register at PSI's sccon page or call (855) 340-3701. Our mock exam uses the same 50 questions, 125 minutes and 70% target. It is unofficial and covers the state law only.

PSI Business Management and Law Content Outline

• Contracts and Agreements: 12
• Estimating and Bidding: 10
• Financial Management: 7
• Project Management: 5
• Labor Laws and Employment Regulations: 3
• Tax Laws: 3
• Liens: 3
• Business Management: 2
• Insurance and Bonding: 2
• Environmental Laws and Regulations: 2
• Safety Recordkeeping and Reporting: 1

Contracts, estimating and finance make up 29 of the 50 questions. Those topics come from the NASCLA guide, not the statute, so spend most of your book time there.

Who Takes the South Carolina Business and Law Exam

• Required: all commercial general and mechanical contractor candidates, alongside the technical exam for their classification.
• Not required: burglar and fire alarm candidates. They take the Alarm Code of Laws exam instead. They also need NTS Level I training, and fire alarm candidates may substitute NICET Level II.
• Experience: general and mechanical candidates need 2 years of commercial experience within the last 5 years in their classification. You document it on an experience affidavit after passing the exams.
• Residential-only builders: they are licensed by the South Carolina Residential Home Builders Commission, not this board.

The SC LLR Contractor's Licensing Board licensure page says PSI supplies the study materials and points candidates to the bulletin.

The Open-Book Reference and PSI Book Rules

PSI lists one reference for this exam: NASCLA Contractors Guide to Business, Law and Project Management, South Carolina Commercial Contractors, 9th Edition. It is sold through PSI's online store.

PSI's book rules:

• Books may be highlighted, underlined and indexed, but not written in. No loose or attached papers.
• Permanent tabs only, meaning tabs that would tear the page if removed. If the proctor can lift a tab without ripping the page, you must take it off before testing.
• Only silent, non-programmable, battery calculators are allowed, with no paper tape and no alphabet keyboard.

For non-code references, PSI says you can base your answers on later editions as they come out.

S.C. Code 40-11 License Groups and Financial Requirements

Section 40-11-260 of the South Carolina Code, Title 40, Chapter 11 sets per-job limits by license group:

• General Group One: $100,000 per job. Needs $20,000 net worth or $10,000 working capital.
• General Group Two: $400,000.
• General Group Three: $1,000,000. Needs $150,000 net worth or $100,000 working capital.
• General Group Four: $3,000,000.
• General Group Five: unlimited. Needs $350,000 net worth or $250,000 working capital. The initial application needs an audited balance sheet dated within twelve months.
• Mechanical: Group One is $35,000, with $7,000 net worth or $3,500 working capital. Group Three is $200,000. Group Five needs $300,000 net worth or $200,000 working capital.
• Bond option (§40-11-262): a surety bond equal to the group's net worth can replace the financial statement. The State of South Carolina is the obligee.

Licensing Rules: Thresholds, Qualifying Parties and Renewal

• Threshold (§40-11-30): a general contractor licence is needed when the total cost of construction is more than $10,000.
• Exams (§40-11-230): 70% or better on the state law exam. A classification exam can be taken twice in twelve months, then once every six months. A person who has not been a certified qualifying party for four years must retest.
• Qualifier leaves (§40-11-230): notify the department within fifteen days. The licence stays in good standing for ninety days from the notice.
• Two entities (§40-11-230): to be the qualifying party for both, you need at least fifty percent ownership of one, and both must operate from the same location.
• Renewal (§40-11-250): licences renew every two years. A lapsed licence can be renewed within ninety days with late fees.
• Sole prime (§40-11-340): a general building licensee must self-perform forty percent or more of the total cost. Mechanical and specialty licensees need fifty-one percent.
• Splitting contracts (§40-11-300): breaking a project into smaller contracts does not lower the required group, because the total cost of construction decides it.

Penalties and Discipline Under S.C. Code 40-11

• Unlicensed work (§40-11-200): a misdemeanor, punishable by up to one year or a fine of up to $5,000. An unlicensed bidder cannot resubmit the same bid after getting licensed.
• Administrative citations (§40-11-100): up to $500 for a first violation and $1,000 for a second within five years, capped at $2,500 per entity per day. You have fifteen days to appeal.
• Board civil penalty (§40-11-110): up to $5,000 per violation. A revoked licence must be returned within fifteen days, and you can reapply no sooner than one year after revocation.
• Lawsuits (§40-11-370): an unlicensed entity cannot sue to enforce a construction contract.
• Bankruptcy (§40-11-380): notify the board within fifteen days.

PSI Exam Day in South Carolina

• Arrival: arrive 30 minutes early. If you arrive late, you may be turned away and lose the fee.
• ID: bring one valid, signature-bearing government ID that matches your registered name.
• Cancelling: cancel at least 2 days before the exam to keep your fee. For a Monday exam, that means by Saturday. Use the PSI website or phone; voicemail and email do not count.
• Breaks: restroom breaks need the proctor's permission, and no extra time is given.

A 3-Week Study Plan for the South Carolina Business and Law Exam

1. Week 1: tab the NASCLA South Carolina guide by the PSI outline. Work the estimating and bidding and financial management chapters with your calculator.
2. Week 2: contracts, liens, tax, labor and insurance. Then read Chapter 40-11 and take our practice test in study mode.
3. Week 3: two timed 125-minute mock exams, then look up every miss in the book.

Comparing states? See our North Carolina NCLBGC Business and Law Exam Guide: G.S. 87, 22C, 44A and the NASCLA 10th Edition and Georgia guides, or the multi-state NASCLA Exam Guide.

South Carolina Business and Law Exam FAQ

Frequently Asked Questions

How many questions are on the South Carolina Business and Law exam?

50 scored questions in 125 minutes, according to the PSI South Carolina Commercial Contractor Candidate Information Bulletin updated September 15, 2026. PSI may also include a small number of unscored experimental questions, which count against your time.

What score do I need to pass the SC Business and Law exam?

35 correct out of 50, which is 70%. That matches S.C. Code §40-11-230, which requires 70% or better on the state law exam.

How much does the South Carolina Business and Law exam cost?

$78, paid to PSI. Most technical exams cost $64 or $78, and the NASCLA Commercial Building exam costs $110.

Is the South Carolina contractor exam open book?

Yes. PSI says the commercial contractor exams are open book. For Business and Law, the reference is the NASCLA Contractors Guide to Business, Law and Project Management, South Carolina Commercial Contractors, 9th Edition. Use permanent tabs only. Highlighting and underlining are allowed, but you cannot write in the book.

How many times can I retake the SC Business and Law exam?

PSI says the Business Management and Law exam may be taken an unlimited number of times over a 12-month period. Technical exams, other than burglar and fire alarm, may be taken twice in 12 months and then once every six months. If you fail, you get a diagnostic report showing your weak areas.

Who has to take the South Carolina Business and Law exam?

All commercial contractor candidates except fire alarm and burglar alarm candidates. Most also pass the technical exam for their classification. Alarm candidates take the Alarm Code of Laws exam instead.

Do I need experience to sit the SC exam?

Experience is documented after you pass. General and mechanical contractor candidates need at least 2 years of commercial experience within the last 5 years in their classification, shown on an experience affidavit with the licence application.

What is the difference between a SC commercial and residential license?

The Contractor's Licensing Board licence covers commercial and residential construction. An entity that only does residential work is licensed by the South Carolina Residential Home Builders Commission.

How hard is the South Carolina Business and Law exam?

You get about 2.5 minutes per question, and every answer is in one open book. Contracts and Agreements (12) and Estimating and Bidding (10) are almost half the exam, so book navigation and estimating maths decide most results.

This is an independent study guide, not affiliated with SC LLR, the Contractor's Licensing Board or PSI. Check current details in the latest PSI bulletin.