Surety Bond Encyclopedia

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

Brief Summary

Fultondale will not issue a plumbing contractor business license until it sees two things: a current master plumber card and evidence of a bond that indemnifies the city. The card comes from your trade credentials. The bond comes from a surety, usually the same day, for an annual premium instead of cash held by the city.

Under Section 26-108 of the Fultondale Code of Ordinances, anyone procuring a plumbing contractor license must furnish evidence of a bond indemnifying the City of Fultondale and must show a valid master plumber or master gas fitter card issued by the state or county. The published code text sets that bond at $2,500, while this listing is written at $5,000, so confirm the amount the city currently requires before the bond is issued.

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

Confirm with the City of Fultondale the bond amount and form it currently accepts for a plumbing contractor license.
Have your current master plumber or master gas fitter card issued by the state or county ready.
Give the surety your legal business name exactly as it will appear on the Fultondale business license.
Complete the bond application and review the quoted premium.
Pay the premium, sign the bond and deliver it to the city with your business license application.
Renew the business license each year on or before January 31 and keep the bond in force.

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

Who has to post this bond

Fultondale classifies plumbers and plumbing and gas fitting contractors under business license classification code 14 in Section 26-107 of its Code of Ordinances. Section 26-108 then adds two conditions before that license is issued. The applicant must present a current master plumber card or master gas fitter card issued by the state or by the county, and anyone procuring a plumbing contractor license must furnish evidence of a bond indemnifying the city.

Check the amount before you buy

The codified text of Section 26-108 states the bond amount as $2,500. This page covers a $5,000 bond. Call the City of Fultondale before the bond is written and ask which amount and which bond form it will accept, so the bond you file matches what the license office expects.

What the bond does

The City of Fultondale is the obligee. The bond protects the city if the licensed contractor fails to meet the obligations of its license and the city ordinances that apply to plumbing work. If a valid claim is paid, the surety looks to the contractor for repayment, so the bond is a guarantee for the city and not insurance for the plumber.

Permits are separate

The bond and license do not replace job permits. Fultondale has adopted the International Plumbing Code, 2021 Edition, under Section 8-27, and Section 8-30 sets plumbing permit fees of a $30 base fee plus $5 per fixture for residential work and a $50 base fee plus $10 per fixture for commercial or industrial work. The city permit application must be signed by a master plumber or by a property owner doing his own work, and commercial jobs of $50,000 or more also require a State of Alabama General Contractor license.

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

City of Fultondale named as obligee, with the bond indemnifying the city.
A valid master plumber or master gas fitter card issued by the state or county.
A Fultondale business license under classification code 14 for plumbers and plumbing and gas fitting contractors.
Separate plumbing permits for each job, signed by a master plumber or a property owner doing his own work.
A State of Alabama General Contractor license for commercial jobs of $50,000 or more.

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

Is the Fultondale plumbing bond $2,500 or $5,000?

The codified text of Section 26-108 reads $2,500. This listing is for a $5,000 bond. Ask the city which amount it will accept before your bond is issued so you file the right one the first time.

Does my master plumber card replace the bond?

No. Section 26-108 requires both. The card shows you are qualified, and the bond protects the city. You need each one before Fultondale issues a plumbing contractor license.

When does the license renew?

Fultondale business licenses renew annually on or before January 31. Licenses not paid within 30 days of the due date are increased by 15 percent, so keep the bond active and renew on time.

How is the premium set?

The surety looks at the bond amount and the owner's personal credit and business history. Strong credit usually means the lowest rate. Get a quote rather than relying on a published figure.