Home>Levelset Community>Legal Help>What is the maximum amount percentage of late fees that a speciality contractor can charge in South Carolina?

What is the maximum amount percentage of late fees that a speciality contractor can charge in South Carolina?

South CarolinaConstruction Contract Payment Disputes

I have a speciality contractor that did some smaller jobs for us. He brought in a statement of work contract that stated he was charging 5 percent per day late fee for any day over the Next 15 time frame. Is this legal? I was told there is a cap on the fee he can charge?

1 reply

May 4, 2020

If the contract calls for an extreme interest rate, then it'd be wise to contact a South Carolina attorney to see if there are limitations on interest penalties in SC. They'll be more familiar with the state's rules and restrictions on interest - and, unfortunately, I'm not familiar with those regulations in SC. With that being said, 5% per day is an exorbitant rate. So, even if it is allowed, negotiating a different fee would make sense - and it's possible that the contractor is using that fee as an anchoring point in their contract.

1 person found this helpful

Helpful