Surety Bond Encyclopedia

Plumbing Contractor ($5,000) Bond - City of Opelika, AL in Alabama

Brief Summary

Every plumbing contractor licensed in Opelika carries a $5,000 bond to the city, and the license expires each December 31, so the bond has to stay current year after year. You pay a premium rather than posting $5,000 in cash, and the bond goes in with your license application and master card.

Opelika Code of Ordinances Sec. 5-181 requires every person engaged as a plumbing contractor in the city to give a $5,000 bond, approved by the city revenue officer and written by a surety company authorized to do business in the city. The bond guarantees that the contractor restores streets, sidewalks and pavements opened for plumbing work and protects the city from damage caused by the contractor's negligence.

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

  • Confirm you are a certified master plumber or employ one for the full license year.
  • Have your master card and state certification number ready.
  • Use the legal business name exactly as it will appear on the Opelika business license application.
  • Provide owner name, home address and Social Security number for the credit review.
  • Complete the bond application, pay the premium and receive the signed $5,000 bond.
  • Mail the bond, a copy of the master card and the application to the City of Opelika Revenue Department.

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

Who has to post it

Sec. 5-181 applies to every person now or later engaged as a plumbing contractor in the business of plumbing and drainlaying in Opelika. To qualify, the contractor must be a certified master plumber or keep a certified master plumber employed for the whole license period. Sec. 14-327 repeats the requirement in the business license schedules: plumbing contractors send a copy of their master card with the application, plus a $5,000 plumbing bond, plus proof of any required state certification.

What the bond guarantees

The bond is conditioned on the plumbing contractor replacing and restoring the streets, sidewalks and pavements over any openings made for the work, and on holding the city harmless from accidents and damages caused by the contractor's negligence. If the contractor fails to do so, the city can claim against the bond, and the contractor repays the surety.

Term and renewal

Sec. 5-181 provides that these licenses expire annually on December 31. Keep the bond in force with each renewal. The bond must be approved by the city revenue officer, so confirm the current bond form with the City of Opelika Revenue Department before the bond is issued.

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

  • City of Opelika named as obligee.
  • Bond amount of $5,000, per Opelika Code Sec. 5-181 and Sec. 14-327.
  • Approval of the bond by the city revenue officer.
  • A certified master plumber as the contractor or on staff throughout the license period.
  • Renewal each year, since licenses expire December 31.

Alabama Plumbing Contractor ($5,000) Bond FAQs:

I am not a master plumber myself. Can my company still be licensed?

Yes, if the company keeps a certified master plumber in its employment continually during the license period. Sec. 5-181 allows either arrangement. The $5,000 bond is required either way.

When does the license expire?

Sec. 5-181 says plumbing contractor licenses expire annually on December 31. The bond should be kept in force for each new license year.

What claims can be made on the bond?

Failure to restore streets, sidewalks and pavements opened for plumbing work, and accidents or damage caused by the contractor's negligence that the city must answer for.

How is the premium set?

The surety prices the bond from the $5,000 amount and a review of the owner, mainly personal credit. You see the actual quote when you apply.

Official and Additional Resources for the Alabama Plumbing Contractor ($5,000) Bond:

Other City of Opelika, AL Surety Bonds in Alabama

Electrical Contractor ($5,000)

Plumbing Contractor ($5,000) in Other Alabama Locations

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