Surety Bond Encyclopedia

Plumbing Contractor ($5,000) Bond - City of Dothan, AL in Alabama

Brief Summary

Dothan pairs its plumbing contractor license with a $5,000 surety bond, and the city will not accept a journeyman or apprentice card in place of a master license. Get the bond lined up when you apply and the license is not held up waiting on paperwork. You pay a yearly premium, not $5,000.

The City of Dothan requires a $5,000 surety bond from plumbing contractors as part of the city business license. Dothan's license schedule places plumbing in the same classification as heating and air conditioning, with state certification required. The applicant must hold a master plumbing license from the Alabama Plumbers and Gas Fitters Examining Board. The City of Dothan is the obligee.

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How to Apply for a Plumbing Contractor ($5,000) Bond:

Hold a master plumbing license from the Alabama Plumbers and Gas Fitters Examining Board.
Apply for the City of Dothan business license as a plumbing contractor.
Use the bond form the city emails after you apply.
Complete the bond application and review the quoted premium.
Pay the premium and return the executed $5,000 bond to the city.

Detailed Information About the Alabama Plumbing Contractor ($5,000) Bond:

The license that qualifies you

Dothan's business license application asks plumbing contractors for a master plumbing license from the Alabama Plumbers and Gas Fitters Examining Board. The city states that apprentice and journeyman licenses are not accepted. If you hold only a journeyman card, the business license has to be issued under a master plumber.

Where the $5,000 comes from

Section 18-22 of the Dothan city code, adopted by Ordinance 2007-393, lists plumbing, heating and air conditioning contractors as one classification. It requires state certification and a $5,000 surety bond. The amount is flat, with no tiers by revenue or job size.

Gas work is licensed separately

The city application lists gas fitters as their own contractor type. They need a master gas fitter license from the same state board and must also provide a surety bond. If your company does both plumbing and gas work, ask the city how it wants the licenses and bonds set up.

What the bond guarantees

The bond is a promise to the City of Dothan that you will follow the city's licensing rules and plumbing code. If a valid claim is paid, the surety will expect you to repay it.

Filing

After you apply, the city emails the bond form and instructions. Confirm the current form and filing steps with the Business License office in Room 315 of the Dothan Civic Center before the bond is issued.

Eligibility and Requirements for a Alabama Plumbing Contractor ($5,000) Bond:

Bond amount of $5,000 under Dothan Code Sec. 18-22.
City of Dothan named as obligee.
Master plumbing license. Apprentice and journeyman licenses are not accepted.
Business name on the bond matching the city license application.
Owner credit review, which sets the premium rate.

Alabama Plumbing Contractor ($5,000) Bond FAQs:

Can I license my plumbing business in Dothan on a journeyman license?

No. The city application states that apprentice and journeyman licenses are not accepted. A master plumbing license from the Alabama Plumbers and Gas Fitters Examining Board is required.

Is the plumbing bond amount tiered?

No. Dothan's license schedule sets one $5,000 amount for its plumbing, heating and air conditioning classification.

Does a plumbing license cover gas piping work?

Dothan lists gas fitters as a separate contractor type that needs a master gas fitter license and its own surety bond. Check with the city before taking on gas work under a plumbing license.

What will the bond cost me?

You pay an annual premium, not the full $5,000. The surety sets the premium after reviewing the owner's personal credit and the business's history, so two contractors applying for the same bond can be quoted different rates. Applying online gets you an actual quote rather than a guess.

When does the license, and the bond behind it, come up for renewal?

Dothan business licenses expire on December 31 each year. The city accepts renewals through the end of January without penalty. After January 31 a 15% penalty applies, and it rises to 30% on March 1. Keep the bond active through every license year and ask the city whether it wants a continuous bond or a new one with each renewal.