Electrical ($5,000) Bond - City of Montgomery, AL in Alabama

Brief Summary

If you plan to wire buildings inside Montgomery, the city business license is where the $5,000 electrical bond comes up. The bond costs a yearly premium rather than $5,000 in cash, it is usually issued quickly, and having it ready keeps your license and permit paperwork moving.

The City of Montgomery licenses electrical contractors under NAICS 238210 in Section 16-105 of the city code, and that classification states the license may require a $5,000 surety bond. The applicant must also hold Alabama Electrical Contractors Board certification. The bond runs to the City of Montgomery, and the business license renews every January.

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

• Hold a current Alabama Electrical Contractors Board license or certification before applying to the city.
• Have the business name exactly as it will appear on the Montgomery business license application.
• Provide the owner's name, address and basic credit details for the surety review.
• Pay the premium and sign the $5,000 bond naming the City of Montgomery as obligee.
• Submit the bond with the business license application to the city License and Revenue Division.
• Renew the business license by January 1 each year and keep the bond active.

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

Where the requirement comes from

Montgomery's business license classifications are set out in Section 16-105 of the Code of Ordinances. The entry for NAICS 238210, Electrical Contractors and Other Wiring Installation Contractors, notes that the work requires certification from the Alabama Electrical Contractors Board and that it may require a $5,000.00 surety bond. Electrical contractors pay the license tax under Schedule AM, the contractor schedule.

Chapter 5 of the code adds a second gate. Section 5-114 says no one may engage in the electrical business without an electrical contractor's license from the city revenue and license division, and only a person who holds a current state electrical contractor license, or a state electrical sign specialty license for sign work, can qualify. The bond does not replace the state license. You need both.

What the bond does

The bond is a promise from a surety company to the City of Montgomery that the contractor will follow city ordinances and permit rules while doing electrical work. If a valid claim is paid, the contractor must repay the surety. It is not insurance for the contractor.

Timing and renewal

Under Section 16-74 the business license is due on or before January 1 each year and becomes delinquent after January 31. A business that starts on or after July 1 pays half the annual license for that year. Keep the bond in force for as long as you hold the license, and confirm the current bond form and filing steps with the city License and Revenue Division before the bond is issued.

What the premium depends on

The $5,000 figure is the bond amount, not the price. The surety sets the premium after reviewing the owner's credit and business history, and most applicants get a quote the same day.

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

• Bond amount of $5,000 as listed for NAICS 238210 in Montgomery Code Sec. 16-105.
• City of Montgomery named as obligee.
• Business name on the bond matching the city license application.
• State electrical contractor credentials, which the bond does not replace.
• A surety company authorized to write bonds in Alabama.

Alabama Electrical ($5,000) Bond FAQs:

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