Surety Bond Encyclopedia

Contractor License ($5,000) Bond - City of Satsuma, AL in Alabama

Brief Summary

Every contractor and subcontractor working in Satsuma needs a city license before a permit is pulled, and this $5,000 bond goes with that license. You pay a premium instead of tying up $5,000, and once the bond is filed with City Hall you can get on with permits and inspections.

The City of Satsuma requires all contractors and subcontractors on a permitted project to be licensed by the city, and the city's contractor license carries a $5,000 surety bond in favor of the City of Satsuma. City business licenses run on the calendar year under Ordinance 417-4 and renew by January 31. Confirm the current bond form and filing steps with Satsuma City Hall before the bond is issued.

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

Call Satsuma City Hall at 251-675-1440 to confirm the current bond form and filing steps before the bond is issued.
Apply for the city business license online or in person at City Hall, 5464 Old Highway 43.
Have your state license number ready if your contract amount triggers a Home Builders Board or General Contractors license.
Provide owner details for the surety's credit review.
Pay the premium and receive the executed $5,000 bond.
File the bond with the city and renew the license by January 31 each year.

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

The city license comes first

Satsuma's Building Permit Information sheet says all contractors and subcontractors must be licensed by the City of Satsuma before work on a project begins, and a permit application must list every subcontractor. The $5,000 bond on this page is the one tied to that city contractor license, with the City of Satsuma as obligee.

A state license may also apply

The city license and bond do not replace state licensing. The same city sheet says that if the contract amount is $10,000 or more, the main general contractor must be licensed with the State of Alabama Home Builders Board. Commercial contractors with contracts over $50,000 must be licensed as a state general contractor and also hold a Satsuma contractor license.

License term and renewal

Satsuma's Business License Code, Ordinance 417-4, runs licenses on the calendar year. A business that starts before July 1 pays the full annual license, and one that starts on or after July 1 pays half. Each license carries a $10 issue fee, the minimum annual license is $100 unless a schedule says otherwise, and renewals are due on or before January 31. Contractors are classified by trade in Section 22 of the ordinance and pay under the gross receipts schedules in Section 23. Keep the bond in force for as long as the license is active.

What the bond guarantees

The bond is the city's assurance that a licensed contractor will follow Satsuma's ordinances and permit rules while working in the city. If the contractor fails to do so and the city or a protected party suffers a loss, a claim can be made against the bond up to $5,000. The surety pays valid claims and the contractor repays the surety.

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

Bond amount of $5,000.
City of Satsuma named as obligee.
Business name on the bond matching the city license application.
A current Satsuma business license for every contractor and subcontractor on the permit.
Premium set by the surety after reviewing the owner's credit and the company's history.

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

Do subcontractors need their own city license?

Yes. Satsuma's Building Permit Information sheet says all contractors and subcontractors must be licensed by the City of Satsuma, and the permit application has to list every subcontractor.

Does a state contractor license replace the city bond?

No. The state license and the Satsuma license are separate. A general contractor on a job of $10,000 or more also needs a Home Builders Board license, and commercial contracts over $50,000 need a state general contractor license, on top of the city license.

When does the city license renew?

Satsuma licenses follow the calendar year under Ordinance 417-4 and are due on or before January 31. Keep the bond active so the renewal is not held up.

How much does the bond cost?

You pay a premium, not the $5,000 face amount. The surety sets it after looking at the owner's credit and the company's track record, so a quick application is the fastest way to see your price.