Subcontractor ($2,000) Bond - City of Dothan, AL in Alabama

Brief Summary

A Dothan subcontractor license comes with hard job value caps, and the city will not issue it until your executed surety bond is on file. The $2,000 bond is a small annual premium that gets you licensed to take building work inside the city limits.

The City of Dothan requires subcontractors to provide a surety bond with their business license application, and the license is issued only after the city receives the executed bond. The subcontractor license is limited by job value: up to $9,999 on residential work, up to $2,499 on residential roofing, and up to $49,999 on commercial work.

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How to Apply for a Subcontractor ($2,000) Bond:

• Confirm your jobs fall within the subcontractor caps: $9,999 residential, $2,499 residential roofing, $49,999 commercial.
• Have your federal EIN and Alabama Secretary of State registration ready if your business type requires it.
• Submit the City of Dothan business license application and choose subcontractor as the contractor type.
• Watch for the city's email with the bond form and instructions.
• Have the $2,000 bond executed on the city's form and return it to the Business License Division.
• Pay the license fee by cash, check, Visa or MasterCard. Card payments add a 1.6% convenience fee.

Detailed Information About the Alabama Subcontractor ($2,000) Bond:

Know your job value caps

The subcontractor license in Dothan is not open ended. The city application limits subcontractor work to projects valued from $1 to $9,999 on residential jobs, $1 to $2,499 on residential roofing, and $1 to $49,999 on commercial jobs. Work above those figures calls for a different license class, so check your typical contract size before you apply.

No trade work under this license

The subcontractor license covers general building activities only. It does not authorize trade work that requires a state certification, such as electrical, plumbing, gas or mechanical work. Those trades carry their own Dothan license types and their own bonds.

How the bond fits in

When you select subcontractor on the city application, Dothan emails you the bond form and instructions. The executed bond goes back to the Business License Division, and the license is not issued until it arrives. The bond guarantees to the City of Dothan that you will follow the city's licensing and building rules. If a valid claim is paid, the surety looks to you to repay it.

License year and renewal

Every Dothan business license expires on December 31. Renewals paid by January 31 carry no penalty. In February a 15% penalty applies, and from March 1 the penalty is 30% plus daily interest.

Premium

You pay an annual premium rather than the $2,000 face amount. The surety prices it from the owner's credit and business history. Confirm the current bond form and filing steps with the Dothan Business License office before the bond is issued.

Eligibility and Requirements for a Alabama Subcontractor ($2,000) Bond:

• City of Dothan named as obligee on the city's bond form.
• Bond amount of $2,000.
• Business name on the bond matching the license application exactly.
• Executed bond received before the license is issued.
• Work limited to general building activities within the subcontractor value caps.
• Bond kept in force through each license year ending December 31.

Alabama Subcontractor ($2,000) Bond FAQs:

Official and Additional Resources for the Alabama Subcontractor ($2,000) Bond: