Sewer and Septic Tank Contractor ($10,000) Bond - City of Mountain Brook, AL in Alabama

Brief Summary

Mountain Brook expects a $10,000 bond on deposit with the city clerk before you lay sewer pipe, set a septic tank or repair a field line in the city. You pay a yearly premium rather than putting up $10,000, and the clerk's approval clears the way for your license.

Section 109-230 of the Mountain Brook City Code requires anyone in the business of installing, removing, maintaining or repairing sewer pipes, septic tanks, field lines and related equipment 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.

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How to Apply for a Sewer and Septic Tank 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 Sewer and Septic Tank Contractor ($10,000) Bond:

Who has to post this bond

Section 109-230 of the Mountain Brook City Code, in the plumbing article of the building regulations, covers anyone in the business of installing, removing, maintaining and repairing sewer pipes and related appliances and equipment, or septic tanks, field lines and related appliances and equipment. The coverage is broad. Removal and maintenance work count, not just new installations. Before starting, the contractor must obtain the proper license and execute and deposit with the city clerk a good and sufficient bond of $10,000. The code sets one flat amount with no tiers.

What the bond promises

The bond is conditioned on faithful observance of all laws, ordinances, rules and regulations that apply to sewer and septic work. 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 all work will be done in a good and workmanlike manner.

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 the current 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. The surety remains liable for anything that accrued before cancellation took effect.

What it costs

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

Eligibility and Requirements for a Alabama Sewer and Septic Tank Contractor ($10,000) Bond:

• Bond amount of $10,000 under City Code Sec. 109-230.
• 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.
• Written notice to the city clerk at least 30 days before any cancellation takes effect.

Alabama Sewer and Septic Tank Contractor ($10,000) Bond FAQs:

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