Surety Bond Encyclopedia

Building Wrecker's (Singular) Bond - City of Birmingham, AL in Alabama

Brief Summary

Birmingham lists its building wrecker's bond in two versions, Singular and Blanket. Picking the wrong one is the most common way a demolition filing stalls. Confirm with the city which version your job calls for, then this bond is a quick filing that clears the way for the demolition permit.

The City of Birmingham requires a building wrecker's bond from contractors who demolish houses, buildings or other structures in the city. This page covers the Singular version. The City of Birmingham is the obligee, and the bond backs the contractor's promise to follow city rules on demolition work. Confirm the bond amount, current form and filing steps with the city before the bond is issued.

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How to Apply for a Building Wrecker's (Singular) Bond:

Ask the Birmingham Department of Planning, Engineering and Permits whether your work calls for the Singular or the Blanket wrecker's bond, and the amount required.
Have the legal business name exactly as it appears on your Schedule 070 Birmingham business license.
Owner name, home address and Social Security number for the surety's credit review.
Complete the bond application and review the quoted premium.
Pay the premium and receive the executed bond naming the City of Birmingham as obligee.
File the bond with the city along with the demolition permit application.

Detailed Information About the Alabama Building Wrecker's (Singular) Bond:

Who has to post this bond

Birmingham licenses demolition contractors under business license Schedule 070, which covers any person, firm or corporation in the business of moving houses or similar structures or demolishing houses, buildings or other structures. Contractors in that line of work are the principals on the building wrecker's bond, and the City of Birmingham is the obligee.

Singular or Blanket

The city's requirement appears in two forms, a Singular bond and a Blanket bond. Each is listed separately and they are not interchangeable. The city does not publish the wrecker's bond form or the difference between the two online, so ask the Department of Planning, Engineering and Permits which version applies to your work and what amount it requires before your surety writes the bond.

What the bond guarantees

The contractor promises to follow the city's ordinances on demolition. If the work breaks those rules and the city or someone else suffers a loss, a claim can be made against the bond. The surety pays valid claims up to the bond amount and then looks to the contractor to repay it.

Permits and licensing

The bond does not replace a demolition permit. Birmingham's fee schedule sets a Class I demolition permit at $150 and a Class II permit at $0.50 per 1,000 cubic feet with a $750 minimum. The Schedule 070 business license fee is based on gross receipts from the prior year. All Birmingham business licenses expire every December 31.

Eligibility and Requirements for a Alabama Building Wrecker's (Singular) Bond:

City of Birmingham named as obligee.
Bond written as the Singular version listed by the city.
A Birmingham business license under Schedule 070 for house movers and house wreckers.
A demolition permit for the work, Class I or Class II.
Owner credit review. Credit shapes the premium for most applicants rather than whether they qualify.

Alabama Building Wrecker's (Singular) Bond FAQs:

Should I get the Singular or the Blanket bond?

Birmingham lists both. Ask the Department of Planning, Engineering and Permits which one your work requires before the bond is issued, since the two are not interchangeable.

Does the bond replace the demolition permit?

No. You still pull a demolition permit. The city fee schedule sets a Class I permit at $150 and a Class II permit at $0.50 per 1,000 cubic feet, with a $750 minimum.

Who is the obligee?

The City of Birmingham.

How is the premium set?

The surety prices the bond from the owner's credit, business history and the bond amount. You pay a premium instead of posting the full amount with the city.