South Carolina Notice Requirements

Private Works — Contractor Notice of Project Commencement (S.C. Code §29-5-23)

Under South Carolina law, a contractor (or any person having direct contact with the property owner, or who acts with the owner's consent, which may include a subcontractor) may optionally file a Notice of Project Commencement within 15 days of commencing work on the project. While this notice is not mandatory, filing it triggers important procedural protections and establishes the framework for remote claimant notice obligations.

The Notice of Project Commencement must be filed with the appropriate county office and a Location Notice must be physically posted at the job site. The Location Notice must remain posted throughout the duration of the construction project. Failure to post or maintain the Location Notice may affect the notice obligations of remote claimants. S.C. Code §§29-5-23, 29-5-440.

When a contractor files a Notice of Project Commencement, remote claimants (sub-subcontractors, materialmen, architects, engineers, and others not in direct privity with the owner) are required to serve a Preliminary Notice of Furnishing on the general contractor. If the contractor fails to file a Notice of Project Commencement, the Preliminary Notice of Furnishing requirement for remote claimants is waived.

Private Works — Remote Claimant Preliminary Notice of Furnishing

Remote claimants — including sub-subcontractors, materialmen, architects, engineers, grading and paving contractors, utility contractors, and private security services — must serve a Preliminary Notice of Furnishing on the general contractor as a precondition to asserting mechanic lien rights, unless the contractor has failed to file a Notice of Project Commencement. S.C. Code §29-5-23.

There is no specific statutory deadline for serving the Preliminary Notice of Furnishing; however, sending the notice as early as possible provides greater protection. The Preliminary Notice of Furnishing is the key document for remote claimants and should be served promptly upon commencing work or delivering materials to the project.

The Preliminary Notice of Furnishing must identify the claimant, the project, and the nature of the labor or materials being furnished. This notice serves to alert the general contractor of the claimant's involvement in the project and preserves the claimant's right to file a mechanic lien or payment bond claim.

Private Works — Statement of Account to Owner

In addition to the Preliminary Notice of Furnishing, remote claimants must deliver a Statement of Account to the property owner within 90 days after the last date of performance or furnishing of materials. This notice must be sent by certified mail, return receipt requested. S.C. Code §29-5-10 et seq.

The Statement of Account requirement is waived if the property owner has filed a Notice of Refusal of Responsibility for mechanic liens. Additionally, service of the recorded mechanic lien on the property owner is sufficient to satisfy the Statement of Account requirement. This means that if the mechanic lien is properly recorded and served within the 90-day window, a separate Statement of Account is not strictly necessary.

The Statement of Account must set forth the amount owed for labor, services, or materials furnished and provide sufficient detail to identify the work performed or materials supplied. Claims are generally limited to the contract amount unless the owner has been put on notice of amounts exceeding the original contract price.

Private Payment Bond — Remote Claimant Notice Requirements

On private projects where the contractor or subcontractor furnishes a payment bond (referred to as a "bonded contractor"), remote claimants — defined as persons having a direct relationship with a subcontractor of the bonded contractor but no direct contractual relationship with the bonded contractor — must comply with specific notice requirements to preserve bond claim rights.

Remote claimants must serve a Preliminary Notice of Furnishing on the general contractor unless the contractor fails to file a Notice of Project Commencement. There is no specific deadline for the Preliminary Notice of Furnishing, but serving it early provides greater protection. S.C. Code §29-5-23.

Additionally, the remote claimant must serve a Notice of Claim on the bonded contractor and the property owner within 90 days after the last date of performance or furnishing of materials. This notice is a mandatory prerequisite to filing suit on the payment bond.

Public Works — Highway Contract Notice Requirements (S.C. Code §57-5-1660)

On South Carolina public highway contracts requiring a minimum 50% payment bond on contracts exceeding $10,000, remote claimants (parties not having a direct contract with the prime contractor) must serve a Preliminary Notice of Furnishing on the general contractor. The same rules apply: there is no specific deadline, but early service provides greater protection. S.C. Code §57-5-1660.

Remote claimants must also serve a Notice of Furnishing on both the contractor and the project owner within 90 days of the last performance or furnishing of materials. This notice may be served personally or by certified mail. Failure to serve this notice within the 90-day period bars the claimant from recovering on the payment bond.

Public Works — All Public Projects Notice Requirements (S.C. Code §11-35-3030)

On all South Carolina public projects (state, municipal, special purpose districts, etc.) requiring a 100% payment bond, subcontractors, equipment lessors, and material suppliers who have a direct contract with the prime contractor are not required to serve any preliminary notice or other statutory notice as a condition of making a bond claim. S.C. Code §11-35-3030.

Sub-subcontractors and material suppliers or equipment lessors to a subcontractor (lower tiers) must serve a Preliminary Notice of Furnishing on the general contractor unless the contractor fails to file a Notice of Project Commencement. Additionally, these lower-tier claimants must serve a Notice of Claim on Bond to the contractor and the project owner within 90 days after the last date labor was performed or materials were furnished. Lower tiers beyond the sub-subcontractor level may not be protected by the bond.