GC Laws — South Dakota contractor-law checklist preview (free)
Sources reviewed 2026-09-30. Public summaries remain free on gclaws.com.

[ ] Licensing
      - A person contracting for covered construction services or constructing, installing or repairing a fixture to real property must have a South Dakota contractor’s tax license, whether performing the work or hiring others.
      - A bidder must also be licensed as a highway contractor to obtain a state, county, township or municipal public highway/street contract; application also requires the contractor’s excise-tax license.

[ ] Mechanic's liens
      - File a verified lien statement with the county register of deeds within 120 days after the claimant's last work or furnishing. Before filing, mail a copy to the owner by registered or certified mail and attach the mailing receipt.
      - If sections 44-9-50 and 44-9-51 were invoked, a sub-subcontractor or supplier to a subcontractor must give the section 44-9-53 notice within 60 days after its last furnishing to extend its lien. Send it to the identified contractor and copy the owner. Individual laborer claims below $2,000 are excepted.
      - Generally assert the lien by complaint or answer within six years after the last item stated in the recorded claim. A served written demand to commence suit shortens the deadline to 30 days.

[ ] Retainage
      - For chapter 5-18B public improvements, final retainage is held until full performance and agency acceptance. After required records, reports and final inspection, interest begins 30 days after completion shown by professional acceptance or use/occupancy; federal-payment delay has a separate trigger.
      - If interim progress-payment money is retained, interest begins 30 days after the required records, reports and progress inspection. The rate set by the agency may not fall below the statutory Category E rate.
      - Category E is 4% per year; Category A is 4.5% per year.
      - County building contracts under section 7-25-10 have a different minimum-retention schedule: 12% of the first $50,000, 5% of the next $200,000, and 2.5% above $250,000, held until completion and county acceptance.

[ ] Prompt payment
      - The agency pays on the contract date, or, absent a specified date, within 45 days after receipt and written acceptance of property/services and receipt of the invoice.
      - A proper invoice unpaid within 45 days accrues interest beginning on day 30 after receipt of property/services and invoice, at Category B or the contract rate. A qualifying dispute requires written notice with reasons within 30 days.
      - After agency payment, the business must pay its subcontractor/supplier within 30 days once contract/delivery terms are satisfied; statutory interest begins on day 31, unless the parties' contract provides otherwise.
      - Category B interest is 10% annually.

[ ] Prevailing wage
      - South Dakota’s labor agency directs covered contractors and subcontractors to the federal prevailing-wage determination for site laborers and mechanics, including applicable fringe benefits. It explains that related-Act coverage depends on the particular assistance statute.

[ ] Davis-Bacon (federal)
      - Under 40 U.S.C. section 3142, covered contracts require payment to laborers and mechanics employed directly on the site of the work at least weekly, at rates no lower than the applicable prevailing wage determination. The required compensation includes the basic hourly rate and required fringe benefits, which may be provided through qualifying benefits or cash as the statute permits.
      - Qualifying apprentices may receive a lower registered-program rate only when the applicable registration and program conditions are met. The Department of Labor’s apprenticeship rules govern those exceptions.
      - The Department of Labor determines the prevailing rates for the work classifications and locality. Contractors and subcontractors must use the wage determination applicable to their covered contract.
      - Federal assistance alone does not establish coverage: many, but not all, construction-assistance statutes include Davis-Bacon requirements. Identify the funding program and its governing Related Act.
      - SAM.gov publishes Davis-Bacon wage determinations. Search by the wage-determination number or the Davis-Bacon public-buildings-or-works category, and match the decision to the contract, locality, and work classification.

This preview lists the topics and rules covered in the full state pack. The paid pack adds the complete source URLs, citations, review dates, and the three editable tools.
GC Laws is owned and operated by GCExperts LLC, a Texas corporation.