A new South Carolina law quietly imposes strict sourcing rules on contractors bidding public-works projects—and noncompliance can mean contract breach liability.
Most construction and trades owners in South Carolina don't realize that a provision buried in H4709 has already changed the rules for bidding on public-works contracts. If you supply materials or bid on state or local government projects, this affects you—and the stakes for getting it wrong are real.
H4709 mandates that all iron and steel used on South Carolina public-works projects must be produced in the United States. This isn't just about where the final product comes from. The law requires that every step of manufacturing—from initial melting through coating—must occur in the US. Imported materials, partially finished goods, or components manufactured abroad don't qualify, even if they're finished or assembled here.
The requirement is codified in Section 11-35-5350(B)(1) and applies to any contractor or supplier bidding on a state or local public-works contract. When you bid, you're contractually obligating yourself to furnish only domestically produced iron and steel.
If your business falls into any of these categories, H4709 applies to you:
This includes road, bridge, building, water, and utility projects funded by public dollars.
This isn't a guideline or preference—it's a contractual requirement. If you bid on a public-works project and fail to comply, you expose your business to:
Even if you didn't knowingly source foreign material, the requirement is strict. Vetting your supply chain and your suppliers' supply chains is now part of due diligence on every public bid.
H4709 became effective upon approval by the Governor (Section 2 of the bill). There is no sunset date stated in the law, meaning this requirement is permanent unless the legislature changes it.
If you bid on public-works projects, review your supplier relationships and sourcing practices. Ask your material vendors directly about the origin of their iron and steel and the location of all manufacturing steps. Document their certifications. When you bid, ensure your cost estimates account for any price difference between US-produced and imported materials—there often is one.
If you're unsure whether a material qualifies, ask before you commit. A brief conversation with your supplier beats a breach-of-contract dispute.
For a detailed, free guide tailored to your trade, contact your industry association or local chamber of commerce.