Surety Bond Encyclopedia

Contractor License Bond - City of Russellville, AL in Alabama

Brief Summary

Contractors who license with the City of Russellville post this bond with the city, and it has to stay in force as long as the license does. Renewals are due January 1 and turn delinquent after February 15, so line up the bond before the city license lapses. You pay a yearly premium instead of setting aside the full bond amount.

The City of Russellville, Alabama requires a Contractor License bond from contractors licensed with the city. The bond names the City of Russellville as obligee and is handled through the Building, Licensing and Zoning Department at City Hall, 304 N. Jackson Ave. The city sets the bond amount, so confirm the current figure and form with that department before the bond is issued.

We can help with all Alabama bonds!

How to Apply for a Contractor License Bond:

Confirm the current bond amount and form with the Russellville Building, Licensing and Zoning Department at 256-332-6060.
Complete the City of Russellville business license application under the Building Contractor category.
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 receive the executed bond naming the City of Russellville as obligee.
File the bond with the license application at City Hall, 304 N. Jackson Ave., and renew both by January 1 each year.

Detailed Information About the Alabama Contractor License Bond:

Who has to post this bond

Russellville licenses businesses through its Building, Licensing and Zoning Department at City Hall, and the city business license form lists Building Contractor as its own license category. Contractors licensed in that category post the Contractor License bond with the City of Russellville. The bond sits behind the license, so it has to be in force for as long as you hold the license.

What the bond guarantees

The City of Russellville is the obligee. The bond is the surety's promise that the contractor will follow the city's ordinances and building requirements, and that the city can recover its costs if the contractor does not. If the surety pays a valid claim, the contractor repays the surety. It protects the city and the public, not the contractor.

Deadlines that matter

Russellville business license renewals are due January 1 and are delinquent after February 15. Plan the bond renewal around that window so the license and bond do not fall out of step.

City bond versus state license

The city bond is a local requirement and is separate from state licensing. Code of Alabama 34-8-1 defines a general contractor as one who undertakes construction of a building, highway, sewer, structure, site work, grading, paving or similar project where the cost of the undertaking is $100,000 or more, and it sets a $5,000 threshold for swimming pool work. Holding a state license does not replace the city bond, and a small contractor below the state threshold may still need the city license and bond.

Permits still apply

The department notes that most construction projects require building permits, and that new construction and many types of remodeling require inspections at several phases. The bond and license do not replace those permits.

Confirming the amount and form

The bond amount and bond form are set by the city. Before the bond is issued, call the Building, Licensing and Zoning Department at 256-332-6060 to confirm the current amount and whether the city requires its own form.

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 bond amount the city requires. You see the quote before you pay anything.

Eligibility and Requirements for a Alabama Contractor License Bond:

City of Russellville named as obligee.
Bond amount as set by the city at the time of filing.
Principal name on the bond matching the city business license application exactly.
Bond kept in force for the full license term.
Owner credit review, which sets the premium rate.

Alabama Contractor License Bond FAQs:

I hold an Alabama general contractor license. Do I still need the city bond?

Yes, plan on it. The state license and the city bond are separate requirements. Code of Alabama 34-8-1 sets the state general contractor threshold at $100,000 or more per undertaking, while Russellville licenses contractors working in the city on its own terms.

When does the Russellville license renew?

All Russellville license renewals are due January 1 and are delinquent after February 15. Keep the bond active through the renewal so the license does not lapse.

How much is the bond?

The City of Russellville sets the amount. Call the Building, Licensing and Zoning Department at 256-332-6060 to confirm the current figure and form before the bond is issued.

What will the premium be?

The surety sets the annual premium from the owner's credit, business history and any prior claims, measured against the bond amount. Apply online and you will see your quote before paying.