A provision in H4709 now bars any bid using foreign-sourced steel on state and local public projects—and it takes effect soon.
Most South Carolina construction and trades owners don't realize that a new state law has quietly changed the rules for bidding on public works projects. Starting now, any iron or steel product permanently incorporated into a state or local government project must come from a US manufacturer. If it doesn't, your bid gets rejected—no exceptions.
Here's what you need to know.
House Bill 4709, adopted June 25, 2024, amended South Carolina Code Section 11-35-5350(B)(1) to mandate that all iron and steel in public works must be "produced in the United States." The law defines "produced" to mean the initial melting, smelting, or refining of the material through its final coating or treatment—the entire supply chain must be domestic.
This isn't a preference or a tiebreaker. It's a hard requirement. Bids that include foreign-sourced iron or steel are contractually barred from consideration. Period.
If you're a general contractor, subcontractor, fabricator, or material supplier bidding on any state or local public works project in South Carolina, this applies to you. That includes road work, bridge projects, building construction, water systems, and any other public infrastructure.
The impact varies by business model. Large contractors with established US supplier networks may absorb the change. Small fabricators and suppliers who have relied on foreign-sourced steel—or who work with mills and distributors that do—face a harder choice: find new US sources, absorb higher material costs, or stop bidding public work.
US-produced iron and steel typically costs more than foreign alternatives. You'll need to:
Audit your supply chain now. Know where your materials come from. If you can't trace a product to a US manufacturer, you can't use it on public bids.
Identify compliant suppliers. Start building relationships with US mills and fabricators before you need them. Prices and lead times may differ from what you're used to.
Adjust your estimates. Factor in the cost premium for domestic steel. Your bids will likely be higher than they were before, which may affect your competitiveness—but all compliant bidders face the same constraint.
Plan for timing. US suppliers may have different lead times than your current sources. Build that into your project schedules.
The law became effective upon the Governor's approval. The fiscal impact date is February 4, 2026, meaning the state budget will reflect this requirement starting then. But the mandate itself is already in effect—any public works bid you submit now must comply.
If you're bidding public work in South Carolina, review your material sourcing immediately. Compliance isn't optional, and non-compliant bids won't be considered.
For a detailed breakdown of how this affects your specific trade or business model, a free bill summary and compliance checklist is available from the South Carolina Construction Industry Association and local construction trade groups.