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

Brief Summary

Excavator is on Mountain Brook's short list of trades that must file a surety bond with the city to work under a Mountain Brook business license. The $10,000 bond costs an annual premium instead of cash held by City Hall, and once it is signed it goes into the license file with your business license application.

The City of Mountain Brook requires excavation contractors to provide the city with a surety bond as part of business licensing. This page covers the $10,000 Excavation Contractor bond. It is written on the city's own Contractor Surety Bond form, names the City of Mountain Brook as obligee, and is filed with the Licenses and Permits Office along with the business license application.

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

• Apply for or renew your City of Mountain Brook business license.
• Have the legal business name and address exactly as they appear on the business license application.
• Owner name, home address and Social Security number for the credit review.
• Complete the bond application and review the quoted premium.
• Pay the premium and have the $10,000 bond executed on the City of Mountain Brook Contractor Surety Bond form.
• File the signed bond with the Licenses and Permits Office, then obtain permits through Building Inspections before any digging starts.

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

Who has to post this bond

Mountain Brook requires a business license from anyone performing work in the city. On top of that, the Finance Department requires certain trades to provide the City with a surety bond. Excavator is one of them, alongside general contractor, home builder, house mover, plumber, gas fitter, sewer and septic tank installer, and irrigation system installer. If your crew digs, trenches or grades in Mountain Brook, the bond belongs in your license file.

What the bond guarantees

The City of Mountain Brook is the obligee. The bond is the surety's promise that the contractor will follow city ordinances and the terms of the permits it pulls, and that the city can recover its costs if the contractor does not. If the surety pays a valid claim, the contractor owes that money back to the surety. The bond protects the city and the public, not the contractor.

Bond form and filing

The city publishes its own Contractor Surety Bond form on the Finance Department's business license page. Use that form rather than a generic one. File the executed bond with the Business License Application. Questions go to the Licenses and Permits Office at (205) 802-2400, prompt 4, or blp@mtnbrook.org. Confirm the current form and filing steps with that office before the bond is issued.

What people get wrong

The license and the bond do not replace permits. Mountain Brook Building Inspections states that every contractor must obtain a permit before beginning work in the city. Demolition runs on a separate city instrument, the Contractor's Bond for Demolition of Structures, so an excavator that also takes down structures should expect a second bond. State licensing is its own question as well. Code of Alabama 34-8-1 defines a general contractor to include one who undertakes site work or grading where the cost of the undertaking is $100,000 or more.

How premium is set

Premium is paid yearly. The surety prices it from the owner's personal credit, time in business and any prior bond claims, measured against the $10,000 bond amount. You see the quote before you pay anything.

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

• City of Mountain Brook named as obligee.
• Bond amount of $10,000.
• The city's own Contractor Surety Bond form.
• Principal name on the bond matching the business license application exactly.
• Owner credit review, which sets the premium rate.

Alabama Excavation Contractor ($10,000) Bond FAQs:

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