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

Brief Summary

Before your crew grades, paves or resurfaces a single street in Mountain Brook, the city clerk needs a $10,000 bond on file. You pay a yearly premium instead of tying up $10,000, and once the clerk approves the bond you can finish your license and get to work.

Section 46-5 of the Mountain Brook City Code requires anyone in the business of grading, paving, surfacing, resurfacing or repairing streets or roads in the city to obtain a license and deposit a $10,000 bond with the city clerk. The bond must be executed by a corporate surety authorized to do business in Alabama, and the clerk approves and keeps it.

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

Who has to post this bond

Section 46-5 of the Mountain Brook City Code covers anyone engaged in the business of grading, paving, surfacing, resurfacing or repairing streets or roads in the city. Before starting, that person must obtain the proper license and execute and deposit with the city clerk a good and sufficient bond of $10,000. The amount is a single flat figure. The code sets no tiers by project size or company size.

What the bond promises

The bond is conditioned on faithful observance of all laws, ordinances, rules and regulations that apply to grading, paving, surfacing, resurfacing and repairing streets and roads. It must indemnify the city and hold it harmless from claims that arise from acts or omissions of the contractor, his agents or employees, and from unfaithful or inadequate work. It also promises that the work will be done in a good and workmanlike manner.

Excavation is a separate bond

Many paving outfits also dig. Section 46-79 of the same chapter sets its own $10,000 bond for anyone in the business of making excavations in the city. If your work goes beyond paving into excavation, ask the city clerk whether both bonds are needed for your license.

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. Get that form from the clerk before the surety issues the bond. The bond is submitted to the clerk for approval and stays in the clerk's custody. It remains in force until 30 days after the clerk receives written notice of the surety's intent to cancel.

What it costs

You pay an annual premium, not the $10,000 face amount. The surety prices the bond after reviewing the owner's credit and business history.

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

• Bond amount of $10,000 under City Code Sec. 46-5.
• Corporate surety authorized to do business in Alabama.
• City of Mountain Brook as obligee, on the form set by the city council.
• Business name on the bond matching the city license.
• A separate $10,000 bond under Sec. 46-79 if you are also in the business of making excavations.

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

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