South Carolina law offers a number of protections for homeowners, to help prevent and remedy contractor disputes. Contractors, too, have recourse if they find themselves in conflict with customers. Most contractor disputes that require a formal complaint will be handled through the South Carolina Department of Labor, Licensing, and Regulation (LLR), but many homeowners may have questions about the appropriateness of filing a complaint vs. continuing to try and work with the other party to resolve their contractor dispute. A discussion with an attorney at King Law Offices may help you to gain an understanding of your legal options for resolving a contractor dispute. Call our 888-748-KING to be connected with our South Carolina office closest to you.
What Are Contractor Disputes?
Most often, “contractor dispute” means a dispute between a residential property owner and a party contracted to carry out work related to the construction or maintenance of a home. In certain contexts, a “contractor” may also be a party contracted to carry out non-residential construction activities. While many similar principles will apply, however, commercial construction tends to be regulated somewhat differently.
A unifying theme of sorts underlying many of the differences is that businesses and real estate investors hiring contractors to work on commercial construction projects often have significantly greater resources and on-staff experience to aid in protecting the hiring party from any lapses on the part of the contractor. Very broadly speaking, disputes between commercial real estate developers and the contractors they hire to carry out work on their properties may often be handled in a manner similar to any other contract dispute between businesses, whereas South Carolina law provides special protections for homeowners in the event of contractor disputes over work on residential properties. These protections can be especially important in cases where a homeowner needs to coordinate repair estimates and finalized contracts with insurance policy coverage in order to ensure critical repairs in the wake of a natural or personal disaster.
State Laws and Regulatory Oversight
In South Carolina, residential contractor activity generally falls under the oversight of the South Carolina Residential Builders Commission, established under S.C. § 40-59-10. The Commission, in turn, operates under the auspices of, and in conjunction with, the LLR, which also oversees the formal complaint process. Many aspects of the residential construction industry in South Carolina fall under the oversight of this Commission, with the establishment of licensing guidelines for residential contractors marking a Commission responsibility of particular importance to both hiring contractors and resolving contractor disputes. A homeowner’s complaint arising from a contractor dispute, however, will be filed with the LLR.
Residential Contractor Licenses and Registrations
There are two main types of contractors whose regulatory bona fides and professional activities are likely to be of interest to South Carolina homeowners: “Residential builders” vs. “Residential specialty contractors.” The South Carolina Residential Builders Commission is responsible for setting the standards for both certifications, but residential builders are required to apply for, and achieve, a residential builder license, whereas residential specialty contractors must be registered with the state for their area of specialization. Understanding some of the differences between the two programs can be useful in verifying the validity of any given contractor’s professional license for the type of work a project involves.
Residential Builders
“Residential builders” are defined under S.C. § 40-59-20(6) as anyone who offers services in residential construction or in superintending home improvement, construction, or repair. The residences in question need not be single-family dwellings in all cases, but residential builder licenses are limited in their applicability; as a rule, they only provide authorization for their holders to work on structures of no more than three floors, with occupancy of no more than 16 units (i.e., residential apartments) each.
In most cases, a residential builder’s license is needed for any project whose total cost is over five thousand dollars, but is often not required for work below this threshold. Individuals who wish to build a home on property they own, for their personal use, may apply for an exemption from the licensure requirement pursuant to S.C. § 40-59-260. If you are preparing to build your own home, but anticipate the need for specialized services in a particular area (electrical wiring is a very common point of concern), you may wish to consider speaking with a South Carolina attorney about your building permit options. More generally, the issue of total value per contract may be important for South Carolina homeowners to keep in mind, as some of the most frustrating contractor disputes can arise out of circumstances in which a homeowner is deeply frustrated with work delays or disappointments on a contracted project with a low initial estimate.
Residential Specialty Contractor
Beyond construction of the building itself, most of the activities normally associated with home improvement, as well as the preparation of a home for initial occupancy, may be conducted by any professional holding a residential specialty contractor whose registration is appropriate to the type of work the project entails. As with the more general residential builder’s license, a cost threshold helps to determine whether a residential specialty contractor registration is required to conduct the work; however, S.C. § 40-59-20(7) sets the project value threshold at which a residential specialty contractor’s registration is required at $500, rather than the $5,000 that applies to residential builders.
Scope of Contractor’s License
An important feature distinguishing a residential specialty contractor’s registration from the residential builder license is the scope of activity covered by the certification. For contractors without a residential builder license, a residential specialty contractor registration is required for activities as diverse as hanging drywall, applying a stucco finish, and wiring a house for electricity, among many other specialties – but while a single individual contractor is permitted to register in up to three specializations, a separate registration will be required for each type of work. An attorney with King Law Offices may be able to advise you regarding your options if you are going through a contractor dispute due to substandard work performed outside the scope of a residential specialty contractor’s registration.
In other words: A residential specialty contractor who is registered with the state as a drywall installer may also register, separately, as a carpenter, but neither of these registrations will authorize the individual to perform services covered by the other. A residential specialty contractor is also not permitted to supervise or subcontract work in any specialization area in which the individual is not registered. Residential builders, by contrast, are specifically permitted, under S.C. § 40-59-20(7), to conduct work “in any of the areas of residential specialty contracting,” and to supervise any of these types of work, without need to register separately as a residential specialty contractor.
Homeowner and Contractor Protections for Roofing Contracts Paid by Homeowners’ Insurance
Some of the most common reasons for hiring a contractor involve home repairs following a storm or other accident. In many of these situations, it is a priority for the property owner to ensure that the contracted work will be covered by their homeowner’s insurance police. Contractor disputes – and conflicts with insurance companies – over roofing repairs are so commonplace that provisions for roofing contract cancellations due to insurance claim denials are spelled out in S.C. § 40-59-25. In non-emergency situations any payments on a roofing contract can be expected to hold for a five-day waiting period to give both parties assurance that the insurance payment to cover the cost of the contract will be disbursed in a timely fashion.
Sometimes emergency repairs need to be completed on such a tight schedule, to forestall further damage (for example, water damage due to additional leakage from a damaged roof) that a homeowner may not have time to submit a homeowner’s insurance claim and get it approved before work begins. South Carolina homeowners should be mindful that they may be responsible for covering any emergency services provided by a residential specialty contractor registered as a roofer at the time of service – in other words, the five-day cancellation period will not normally apply to emergency services, although the contractor may request the property owner’s written acknowledgement that the repairs are necessary to prevent further damage to the residence.
Speak With a South Carolina Attorney
If you are dealing with a contractor dispute arising from work on your home, you may be feeling frustrated. The feeling of discouragement is often particularly strong in homeowners who have contracted home repair work due to damage from natural disasters, and who find themselves struggling to navigate both insurance claims processes and contractor disputes. A South Carolina attorney with King Law Offices may be able to review your situation and offer you guidance regarding your options. Call 888-748-KING today to schedule a consultation with a member of our team near you.