Permitting Contractor License ($10,000) Bond - City of Mobile, AL in Alabama

Brief Summary

Mobile will not issue permits to a builder, contractor or subcontractor who does not have a current $10,000 License and Permit Bond on file. One bond covers your permitted work in the city, and it is written on the City's own one page form, so it is quick to issue once you apply.

The City of Mobile requires every builder, contractor and subcontractor pulling permits to keep a current $10,000 License and Permit Bond on file. The bond names the City of Mobile as obligee, must come from a surety authorized in Alabama, and is subject to approval by the City of Mobile Legal Department. It is filed with the Permitting office at Government Plaza.

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How to Apply for a Permitting Contractor License ($10,000) Bond:

• Register with the City of Mobile Building Official and confirm any state license your work requires.
• Have the contractor's legal company name exactly as it will appear on permits.
• Provide owner name, home address and Social Security number for the credit review.
• Apply for the bond on the City of Mobile Permitting Bond Form for $10,000.
• Pay the premium and receive the signed and sealed bond with power of attorney and resident agent information.
• File the bond with City of Mobile Permitting, Government Plaza, 205 Government Street, Third Floor South Tower.

Detailed Information About the Alabama Permitting Contractor License ($10,000) Bond:

Subcontractors post it too

The City's building code adoption ordinance says every builder, contractor and subcontractor shall provide and have on file a current License and Permit Bond for $10,000. Trade subcontractors who assume the prime contractor's bond covers them are the ones most often held up at the permit counter.

What the bond guarantees

Under Article Five of the ordinance, the bond insures that the licensee complies with the laws, ordinances and building regulations of the City. It also holds the City harmless from claims arising from accidents and damage caused by the contractor's negligence or by unfaithful or inadequate work by the contractor, its agents or employees. The City's bond form adds that the principal must do the work in a good and workmanlike manner and promptly repair faulty work. Any person, firm or corporation injured in person or property by a breach may bring suit on the bond.

Registration and state licensing

Article Four requires each contractor doing permitted work on buildings to be properly licensed and bonded under City and State requirements and to register with the Building Official, giving full name, residence and place of business. Anyone performing work that exceeds $50,000 must also hold the general contractor or subcontractor credentials Alabama law requires. The City bond does not replace a state license.

Term and cancellation

The bond stays in force until cancelled. Either party may end it by written notice delivered at least 35 days before the effective date of termination. Letting it lapse means you cannot pull new permits until a replacement is on file.

Premium

The bond amount is fixed at $10,000. Premium depends on the owner's credit and business history.

Eligibility and Requirements for a Alabama Permitting Contractor License ($10,000) Bond:

• Bond amount of exactly $10,000.
• City of Mobile named as obligee.
• Surety company authorized to do business in Alabama.
• Bond subject to approval by the City of Mobile Legal Department.
• Required of builders, contractors and subcontractors alike.
• 35 days written notice to cancel.

Alabama Permitting Contractor License ($10,000) Bond FAQs:

Official and Additional Resources for the Alabama Permitting Contractor License ($10,000) Bond: