Surety Bond Encyclopedia

Electrician ($10,000) Bond - City of Mountain Brook, AL in Alabama

Brief Summary

Mountain Brook will not let an electrical contractor start work in the city until a $10,000 bond is on deposit with the city clerk. The bond costs an annual premium rather than $10,000 in cash, and once the clerk approves it you can finish your license and pull permits.

Section 109-167 of the Mountain Brook City Code requires anyone in the business of installing, maintaining or repairing electrical wiring, apparatus and equipment in the city to obtain a license and deposit a $10,000 bond with the city clerk. The bond must be written by a corporate surety authorized to do business in Alabama and is approved and held by the city clerk.

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How to Apply for a Electrician ($10,000) Bond:

  • Ask the Mountain Brook city clerk for the current city bond form.
  • Have the business name exactly as it will appear on the city license.
  • Give the surety owner names, addresses and consent for a credit review.
  • Pay the premium and receive the signed $10,000 bond from a surety authorized in Alabama.
  • Deposit the bond with the city clerk for approval along with your license application.

Detailed Information About the Alabama Electrician ($10,000) Bond:

Who has to post this bond

The requirement sits in Article III of Chapter 109 of the Mountain Brook City Code, the city's electrical code. Section 109-167 says that before any person engages in the business of installing, maintaining and repairing electrical wiring, apparatuses and equipment in the city, he must obtain the proper license and execute and deposit with the city clerk a good and sufficient bond of $10,000. It is one flat figure. The code sets no tiers by job size or license class.

What the bond promises

The bond is conditioned on faithful observance of all laws, ordinances, rules and regulations that apply to electrical work in the city. It must indemnify the city and hold it harmless from claims arising from acts or omissions of the contractor, his agents or employees, and from unfaithful or inadequate work. It also guarantees that all work is done in a good and workmanlike manner.

The license that goes with it

Section 109-166 says a master or employing electrician gets a license only after the electrical inspector certifies the electrician is qualified, or after the electrician shows the city clerk a current, valid license for similar work issued by the proper officials. Section 109-165 requires all electrical work to be supervised by a licensed master electrician, with a master or journeyman on the job at all times. A good bond does not replace any of this.

Filing and cancellation

The city council sets the form and substance of the bond, and a copy of the form is kept in the city clerk's office. Ask the clerk for the current form before the surety issues the bond, because a bond on the wrong form can be sent back. The bond stays in force until 30 days after the city clerk receives written notice of the surety's intent to cancel.

What it costs

You pay a yearly premium, not the $10,000 face amount. The surety sets that premium after reviewing the owner's credit and business history.

Eligibility and Requirements for a Alabama Electrician ($10,000) Bond:

  • Bond amount of $10,000 under City Code Sec. 109-167.
  • Corporate surety authorized to do business in Alabama.
  • City of Mountain Brook as obligee, on the form set by the city council.
  • Electrical inspector certification or a current valid license for similar work under Sec. 109-166.
  • Master electrician supervision of all work under Sec. 109-165.

Alabama Electrician ($10,000) Bond FAQs:

Who has to file this bond in Mountain Brook?

Any person in the business of installing, maintaining or repairing electrical wiring, apparatus and equipment in the city. Section 109-167 requires the license and the $10,000 bond before that work begins.

Is the amount ever higher or lower?

No. The code sets a single $10,000 figure with no tiers.

Where does the bond go?

It is deposited with the Mountain Brook city clerk, who approves it and keeps custody of it. The form is set by the city council and kept on file in the clerk's office.

Can the surety cancel the bond?

Yes, by written notice to the city clerk. The surety stays liable until 30 days after the clerk receives that notice, and remains liable for anything that accrued before cancellation took effect.

How much will the bond cost me?

You pay an annual premium set by the surety after it reviews your credit and business history. The full $10,000 is only the most the surety could have to pay on a valid claim.

Official and Additional Resources for the Alabama Electrician ($10,000) Bond:

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