South Carolina Business and Law Exam for Contractors

South Carolina requires a business and law exam at both of its contractor licensing agencies, and they are two different exams. The Contractor's Licensing Board requires the Business Management and Law for Commercial Contractors exam, and the Residential Builders Commission requires the Business Management and Law for Residential Builders exam, with PSI giving both.

At a glance

• Contractor's Licensing Board: "Regardless of how you are applying for licensure, all individuals must pass" the commercial business and law exam before requesting qualifying party certification.
• Commercial exam, PSI bulletin updated 8/27/2026: 50 questions, 35 correct to pass, 125 minutes, open book, $78 exam fee.
• Residential exam, PSI bulletin updated 10/9/2026: 50 questions, 34 correct (68%) to pass, 120 minutes, open book.
• Residential Builders Commission, on a technical exam waiver: "The SC Business Management and Law Exam would still be required."

Checked against the South Carolina Contractor's Licensing Board, the Residential Builders Commission and the PSI candidate bulletins on October 16, 2026.

Two agencies, two exams

If you are working toward a contractor license in South Carolina, the first job is to find out which agency licenses you, because the business and law exam you take depends on the answer. The Contractor's Licensing Board licenses general and mechanical contractors. The Residential Builders Commission licenses residential builders. Our South Carolina contractor license guide explains the license types in full, and this page stays on the exam.

PSI's commercial bulletin says a license from the Contractor's Licensing Board allows an entity to engage in commercial as well as residential construction, and that an entity solely engaged in residential construction is licensed by the Residential Builders Commission instead. The Commission's FAQ prints Section 40-59-20(6), which defines a residential builder as one working on a residential building not over three floors in height and with no more than sixteen units in any single apartment building.

Below, "the Board" means the Contractor's Licensing Board and "the Commission" means the Residential Builders Commission.

The commercial exam at the Contractor's Licensing Board

The Board's licensure page puts the rule in one sentence: "Regardless of how you are applying for licensure, all individuals must pass the South Carolina Business Management & Law for Commercial Contractors Exam prior to requesting qualifying party certification from the Board." The page also says the primary qualifying party must finish the exam requirements before the entity or individual submits an application for licensure, and that "There are no pre-approvals required to schedule the PSI exams."

The exam goes by more than one name. The Board's page uses both "Business Management and Law" and "Business Law and Project Management," and the statute calls it the "South Carolina Commercial Contractors Business, Law and Project Management examination." PSI's bulletin title is Business Management and Law for Commercial Contractors.

The statute sits behind the rule. Section 40-11-230(A)(3) says an applicant for qualifying party certification must "attain a grade of seventy percent or better on an examination of South Carolina law regulating general and mechanical contracting." Thirty five correct out of fifty is seventy percent. The same section limits an individual to two attempts on an examination in a license classification in a twelve month period, and then one attempt every six months. PSI's bulletin adds a note that the Business Management and Law for Commercial Contractors exam "may be taken on an unlimited basis over a 12-month period." Because the statute and the bulletin read differently on retakes, confirm the current retake rule with the Board before you plan a second sitting.

The bulletin's content outline lists eleven topic areas for the commercial exam:

For some classifications this is the only exam. The Board lists boring and tunneling, miscellaneous metals, highway incidental, railroad lines and masonry as general contractor classifications that "require passing only" the business and law exam. The classifications the Board lists as requiring technical examinations add one, and PSI's commercial bulletin says most general and mechanical contractor classifications also require passing a technical examination. The bulletin says burglar and fire alarm candidates take the Alarm Code of Laws exam instead, and every other commercial candidate takes the business and law exam.

What Section 40-11-290 says about another state's license

Section 40-11-290 is the statute for applicants who hold a license in another state. It says the Board "may grant a license or certificate to an applicant holding a license or certificate in good standing in another state" whose requirements are equal to or greater, "if the board has authorized an exam waiver agreement with the State." It also lets an applicant exempt the technical examination by verifying a passing score on an essentially similar exam. Its last sentence matters most here: an applicant under this section "may be required to pass the South Carolina Commercial Contractors Business, Law and Project Management examination, and must comply with all other licensing and certification requirements of this chapter."

The statute says "may be required," while the Board's page says "regardless," so plan on sitting the exam. Our guide to South Carolina contractor license reciprocity covers the waiver chart itself.

NASCLA candidates still take it

The Board lists two national exams for people who want licenses in several states: the National Commercial Building Contractor exam and the NASCLA Accredited Trade Examination for Electrical Contractors. The Board offers them "for those desiring to become licensed in multiple states/jurisdictions" and does not say they replace anything; PSI describes the NASCLA exams as reducing a state's specific trade portion. PSI's commercial bulletin says that candidates "are expected to follow individual state agency applications to become licensed, in addition to taking a business and law examination." With the Board's "regardless of how you are applying" sentence, a national exam does not replace the state business and law exam for a South Carolina commercial license. Our list of NASCLA exam accredited states shows where national scores travel.

The residential exam at the Residential Builders Commission

The Commission has its own Business Management and Law for Residential Builders exam, and PSI's residential bulletin says all candidates pass it in addition to their trade exam. The path starts differently from the Board's. You apply to the Commission first, the Commission sends an eligibility letter valid for one year, and you then schedule with PSI. The bulletin says you must pass both the business and law exam and your residential builder, HVAC, plumbing or electrical exam within that twelve month period, with three attempts allowed. Under Section 40-59-220(E), a person who fails three times waits twelve months before being examined again.

The residential exam also has fifty questions, with a different outline from the commercial one:

Waivers and NASCLA at the Commission

The Commission's pages are the authority here, so these are its words and not ours. The Residential Builder page says that for a technical exam waiver, "The work experience requirements and the Business Management and Law portion of the exam remain applicable." The Residential Electrician page says nearly the same thing. The Commission's licensure page says that a person licensed in a state with an exam waiver agreement may be licensed "without taking the technical examination. The SC Business Management and Law Exam would still be required."

Those pages also say that passing the NASCLA Commercial General Building Contractor exam (builder license) or the NASCLA Residential Electrical Contractors exam (electrician license) within the past three years can qualify an applicant for the technical waiver. The pages do not describe any exception to the business and law sentence for NASCLA passers, and they do not say that NASCLA excuses it. Confirm with the Commission before you plan around it. Its lists of waiver states also differ slightly between pages, which is another reason to ask.

Side by side

The bulletins differ on one detail. The commercial bulletin says its unscored experimental questions "will count against examination time," while the residential bulletin says the time spent on its unscored pretest questions will not count. The residential bulletin also says its passing score "may change as examination performance is evaluated," so read the current bulletin the week you register.

What open book means in the room

Both bulletins say these exams are open book, and you may bring the reference book the bulletin lists for this exam. The bulletin lists the references, so read it there. Both bulletins also state that the references will not be available at the examination center, so bring your own copy. The residential bulletin says the exam is based on two editions of its listed reference until April 9, 2027 and only on the newer edition after that, so check the edition before you buy anything.

The rules for the book are strict. Books may be highlighted, underlined or indexed, but must otherwise be unmarked, with no loose or attached papers. Only permanent tabs that would tear the page if removed are allowed, and the proctor can have you remove any tab that comes off without tearing. You may use a silent, nonprinting, non-programmable calculator. Bring one valid, unexpired photo identification that matches the legal name you registered with, and arrive at least 30 minutes early, because a late arrival can forfeit your fee.

Steps to take

1. Decide which agency licenses you: the Board for general or mechanical work, or the Commission for residential building. If you are unsure, ask the agency before you pay for an exam.
2. For the Commission, apply first and wait for the eligibility letter. For the Board, the Board's page says there are no pre-approvals to schedule with PSI.
3. Download the current PSI candidate bulletin for your agency and read the reference list, the content outline and the exam rules.
4. Obtain the reference the bulletin lists and prepare it for the room, with highlights and permanent tabs only.
5. Register with PSI online. Our walkthrough on how to schedule a contractor exam with PSI, Prov or Pearson VUE covers booking and rescheduling. Cancel at least two days ahead if you need to move your appointment, because a missed appointment forfeits the fee.
6. Sit the exam. Your score appears on screen right away, and a candidate who does not pass receives a diagnostic report by exam type. If that happens, see our guide on what to do after a failed contractor exam.
7. Keep the PSI pass sheet. The Board asks for the PSI Business Management and Law for Commercial Contractor's pass sheet with the qualifying party application.

Live exam classes are coming through our exam prep tour.

Common questions

Does South Carolina require a business and law exam for contractors? Yes. The Contractor's Licensing Board requires it of all individuals before qualifying party certification, regardless of how they apply, and the Residential Builders Commission requires its own version of all candidates.

Can I skip it with a license from another state? The Board says "regardless of how you are applying for licensure," and the Commission says the exam "would still be required" when the technical exam is waived. Section 40-11-290 itself says a person under that section "may be required" to pass it. Confirm your situation with the agency.

Does the NASCLA exam replace the South Carolina business and law exam? Not at the Board. PSI's commercial bulletin says candidates follow the state application and take a business and law exam in addition. At the Commission, its pages say the business and law portion remains applicable to waivers and do not state a NASCLA exception, so ask the Commission directly.

Does the owner have to sit it? The person who will be certified as a qualifying party sits the Board's exam. Our page on whether the owner has to take the contractor exam explains who that person usually is, and the South Carolina primary qualifying party guide covers the management role the Board requires.

Where do other states fit? Each state names its own exam. Compare them on our business and law exam by state page.

When the exam is the obstacle

Sometimes a person cannot sit and pass the exam in time for a bid or a job, or a license cannot move by waiver. A company can still be licensed through a qualifying agent who already holds the license and qualifies the company as an owner or full time W-2 employee who supervises the work. In South Carolina that person serves as the primary qualifying party in a real management role. Our contractor qualifier services are built around those limits, and you can read more in what a qualifying agent is or start at Hire a Qualifying Agent.

Talk to us before you register

Bulletin dates and exam rules change, and registering for the wrong agency's exam costs an exam fee. For a second opinion on your South Carolina plan, call The Licensing Company at 615-219-2110 or start at Hire a Qualifying Agent. Our founders, Marshall Schofield and Jeremiah Jaskulski, are licensed general contractors, master electricians, master plumbers and master mechanical.

Sources

All sources were opened and read on October 16, 2026.

• South Carolina Contractor's Licensing Board, Licensure with the Board
• PSI, South Carolina Contractor's Licensing Board Commercial Contractor Candidate Information Bulletin (updated 8/27/2026)
• PSI, South Carolina Residential Builders Commission Residential Builders and Residential Specialty Examinations Candidate Information Bulletin (updated 10/9/2026)
• S.C. Code of Laws, Title 40, Chapter 11, General and Mechanical Contractors (Sections 40-11-230 and 40-11-290)
• S.C. Code of Laws, Title 40, Chapter 59, Residential Builders (Section 40-59-220)
• South Carolina Residential Builders Commission, Licensure
• South Carolina Residential Builders Commission, Residential Builder License
• South Carolina Residential Builders Commission, Residential Electrician License
• South Carolina Residential Builders Commission, Frequently asked questions to become licensed as a Residential Builder