Surety Bond Encyclopedia

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

Brief Summary

Demolition contractors who work in Birmingham regularly face a choice the city does not explain online: a Singular wrecker's bond or a Blanket one. This page covers the Blanket version. Confirm with the city that it fits your operation, and it becomes a simple standing filing behind your demolition permits.

The City of Birmingham requires a building wrecker's bond from contractors who demolish houses, buildings or other structures in the city, and lists it in a Blanket version and a Singular version. This page covers the Blanket bond. The City of Birmingham is the obligee. 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 Bond (Blanket) Bond:

Confirm with the Birmingham Department of Planning, Engineering and Permits that the Blanket wrecker's bond fits your work, 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 before pulling demolition permits.

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

Who posts the wrecker's bond

Any person, firm or corporation in the business of demolishing houses, buildings or other structures in Birmingham is licensed under business license Schedule 070, which also covers house movers. Those contractors post the building wrecker's bond, with the City of Birmingham as obligee.

The Blanket version

Birmingham lists two separate wrecker's bonds, Blanket and Singular. The city does not publish either form or explain the difference on its website, so do not assume one will stand in for the other. Before you buy, ask the Department of Planning, Engineering and Permits whether the Blanket bond is the right one for your work and what amount the city currently requires.

What the bond guarantees

The bond backs the contractor's promise to follow Birmingham's ordinances on demolition work. If a violation causes a loss to the city or another party, a claim can be made on the bond. The surety pays valid claims up to the bond amount and then recovers from the contractor.

Permits and licensing

Every demolition still needs its own permit. Under the city fee schedule, a Class I demolition permit is $150 and a Class II permit is $0.50 per 1,000 cubic feet with a $750 minimum. The Schedule 070 license fee is based on the prior year's gross receipts, and every Birmingham business license expires on December 31.

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

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

Alabama Building Wrecker's Bond (Blanket) Bond FAQs:

What is the difference between the Blanket and Singular wrecker's bonds?

Birmingham lists them as two separate bonds but does not explain the difference online. Ask the Department of Planning, Engineering and Permits which one your work requires before the bond is issued.

Do I still need a demolition permit?

Yes. The bond does not replace the 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. There is no fixed rate that applies to everyone.