South Carolina has a statutory requirement for prompt payment to contractors, subcontractors, and material suppliers.  See S.C. Code Ann §§ 29-6-10 through 29-6-60.  § 29-6-30 states that when a contractor requests payment after having performed as required by the contract, the owner must pay him the undipsuted amount within 21 days of receiving the payment request.  The contractor must pay his subcontractors (and each subcontractor to his sub-subcontractor), based upon the work completed or service provided under the subcontract, within 7 days of receiving periodic of final payment from the owner.  All of these payments must be made by first class mail or delivery.

§ 29-6-50 explains that if payments are late, then an interest rate of 1% per month accrues against the person who owes the payment.  However, the interest will only accrue if the person being charged was notified of the statutory provisions requiring interest payments at the time the request for payment was made.

For private construction projects, owners, contractors, and subcontractors may contractually agree to interest rates and payments periods that are different from those described by the statute.  However, the payment schedules and interest rates identified in the contract will apply only if the parties specifically waive the requirements of §§ 29-6-30 and 29-6-50 by referring specifically to those section numbers in the language of the waiver and by using conspicuous bold-faced or underline type.

Per § 29-6-60, the above statutory provisions do NOT apply to the following:

• Residential homebuilders
• Improvements to real property intended for residential purposes which consist of 16 or fewer residential units
• Private persons or entities which own the improvement and are paying for it themselves (If a non-owner pays for the improvement, the statute applies)