Every person who has furnished labor, material, or rental equipment to a bonded contractor or its subcontractors in the prosecution of work provided for in any contract for construction, and who has not been paid in full therefor before the expiration of a period of ninety days after the day on which the last of the labor was done or performed by him or material or rental equipment was furnished or supplied by him for which such claim is made, shall have the right to sue on the payment bond for the amount, or the balance thereof, unpaid at the time of the institution of such suit and to prosecute such action to final execution and judgment for the sum or sums justly due him.
A remote claimant shall have a right of action on the payment bond only upon giving written notice by certified or registered mail to the bonded contractor within ninety days from the date on which such person did or performed the last of the labor or furnished or supplied the last of the material or rental equipment upon which such claim is made. However, in no event shall the aggregate amount of any claim against such payment bond by a remote claimant exceed the amount due by the bonded contractor to the person to whom the remote claimant has supplied labor, materials, rental equipment, or services, unless the remote claimant has provided notice of furnishing labor, materials, or rental equipment to the bonded contractor. Such written notice to the bonded contractor must generally conform to the requirements of Section 29-5-20(B) and sent by certified or registered mail to the bonded contractor at any place the bonded contractor maintains a permanent office for the conduct of its business, or at the current address as shown on the records of the Department of Labor, Licensing and Regulation. After receiving the notice of furnishing labor, materials, or rental equipment, no payment by the bonded contractor shall lessen the amount recoverable by the remote claimant. However, in no event shall the aggregate amount of claims on the payment bond exceed the penal sum of the bond.
No suit under this section shall be commenced after the expiration of one year after the last date of furnishing or providing labor, services, materials, or rental equipment.
For purposes of this section, "bonded contractor" means a contractor or subcontractor furnishing a payment bond, and "remote claimant" means a person having a direct contractual relationship with a subcontractor or supplier of a bonded contractor, but no contractual relationship expressed or implied with the bonded contractor. Any payment bond surety for the bonded contractor must have the same rights and defenses of the bonded contractor as provided in this section.
This section shall apply to any payment bond, whether statutory, public, common law, or private in nature, that is issued in connection with a construction project or other improvements to real property within South Carolina when such payment bonds are not otherwise required or governed by any other applicable section of the South Carolina Code of Laws.
For the purposes of this section:
(1) "Statutory bonds" or "public bonds" means bonds that are either:
(a) provided because required by statute and in accordance with the minimum guidelines set forth in this section; or
(b) contain either express or implied reference to the provisions of this section.
(2) "Common law bonds" or "private bonds" means bonds that are either:
(a) not required by statute, such as a bond voluntarily provided to meet a contractual agreement between parties; or
(b) required by statute but that specifically deviates from the statutory requirements to provide broader protection.
HISTORY: 2000 Act No. 240, Section 1; 2014 Act No. 264 (S.1026), Section 1, eff June 6, 2014.
Effect of Amendment
2014 Act No. 264, Section 1, in the second paragraph, substituted "must generally conform to the requirements of Section 29-5-20(B) and sent by certified or registered mail" for "shall be personally served or sent by fax or sent by electronic mail or sent by registered or certified mail, postage prepaid,"; in the fourth paragraph, inserted "or supplier" in the first sentence, and added the second sentence, relating to rights and defenses; and added the paragraphs following the fourth paragraph.
Structure South Carolina Code of Laws
Title 29 - Mortgages and Other Liens
Section 29-5-15. Filing requirements; penalty for frivolous lien.
Section 29-5-22. Reasonable rental value of tools, appliances, machinery, and equipment.
Section 29-5-23. Notice of Project Commencement; location notice; failure to file notice.
Section 29-5-25. Private security guard services at site of real estate improvement.
Section 29-5-26. Landscape services.
Section 29-5-27. Laborer and person defined.
Section 29-5-30. Lien against debtor with life estate or whose estate is less than fee simple.
Section 29-5-50. Lienor's preference over contractor.
Section 29-5-60. Proration of payments among lienors.
Section 29-5-70. Force of lien against existing recorded mortgage.
Section 29-5-80. Notice of nonresponsibility by owner of building or structure.
Section 29-5-90. Dissolution of lien for failure to serve and file statement; contents of statement.
Section 29-5-100. Proceedings not invalidated by inaccuracy of statement of account.
Section 29-5-110. Release of lien upon filing written undertaking and security.
Section 29-5-120. Time for bringing suit to enforce lien; dissolution and release of lien.
Section 29-5-130. Enforcement of certain liens before magistrate's court.
Section 29-5-140. Enforcement of lien by petition to court of common pleas.
Section 29-5-150. Service of petition.
Section 29-5-160. Contents of petition.
Section 29-5-170. Petition filed by multiple lienors.
Section 29-5-180. Amendments of pleadings.
Section 29-5-190. Notice to owner and other creditors.
Section 29-5-200. Notice by publication or other than personal service.
Section 29-5-210. Further notice of suit.
Section 29-5-220. Hearing on claims of lienors.
Section 29-5-230. Questions for jury.
Section 29-5-240. Determination of claims due but not yet payable.
Section 29-5-250. Recovery for part performance.
Section 29-5-260. Sale of premises if lien established.
Section 29-5-270. Sale of part of property.
Section 29-5-280. Notice of sale.
Section 29-5-290. Distribution of proceeds of sale.
Section 29-5-300. Distribution of proceeds by court.
Section 29-5-310. Distribution of surplus.
Section 29-5-320. Prior attaching creditor is preferred.
Section 29-5-330. Distribution of proceeds where there is attaching creditor.
Section 29-5-340. Subsequent attachments.
Section 29-5-350. Attachments intervening between two liens.
Section 29-5-360. Rights of creditors among themselves.
Section 29-5-380. Executor or administrator may enforce creditor's lien.
Section 29-5-390. Suits begun by one creditor may be prosecuted by another.
Section 29-5-400. Allowance of claim and costs of petitioning creditor.
Section 29-5-420. Civil action not barred.