Brief Summary
Refrigeration contractors working in Dothan usually carry two bonds, not one. The state board requires its own bond for an active license, and the city requires this $5,000 bond before it issues a Dothan business license. Getting the city bond is quick and costs a small annual premium.
The City of Dothan requires refrigeration contractors to provide a surety bond as part of the city business license application, along with a refrigeration license from the Alabama Board of Heating, Air Conditioning and Refrigeration Contractors. This $5,000 bond runs to the City of Dothan and is filed with the Business Services office.
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Detailed Information About the Alabama Commercial Refrigeration Contractor ($5,000) Bond:
Who has to post this bond
Every business doing refrigeration work inside Dothan city limits needs a city business license. The city application states that refrigeration contractors must provide a surety bond and must hold a refrigeration license from the Alabama Board of Heating, Air Conditioning and Refrigeration Contractors. After you apply, the city emails you the bond form and instructions.
This is separate from your state board bond
The state board requires a $20,000 performance bond, written in the business name with the board as obligee, for any refrigeration or heating and air contractor holding an active license. That bond satisfies the state. It does not satisfy Dothan. The city bond on this page is a second instrument, written to the City of Dothan, and both need to stay in force while you work in the city.
Term and renewal
Dothan business licenses expire December 31 and are due for renewal by January 31. A 15% penalty applies in February, and from March 1 the penalty is 30% plus interest. Keep the bond active for the full license year.
What the bond costs
You pay an annual premium, not the $5,000 face amount. The surety sets the rate after reviewing the owner's credit and business history. Confirm the current bond form and filing steps with the City of Dothan Business Services office before the bond is issued.