Gas Fitting Contractor ($2,500) Bond - City of Sheffield, AL in Alabama

Brief Summary

If you do gas piping work inside Sheffield, the city code requires a $2,500 bond filed with the city clerk before you take on jobs. It is a small bond with specific conditions written into the ordinance, and the clerk has to approve it. Have it issued by a surety authorized in Alabama and filed alongside your Sheffield business license so the paperwork does not stall your first permit.

Sheffield Code Section 106-20 requires every person engaged in the business of gasfitting in the city to give a $2,500 bond payable to the City of Sheffield. The surety must be a company authorized to do business in Alabama, and the bond must be approved by and filed with the city clerk.

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How to Apply for a Gas Fitting Contractor ($2,500) Bond:

• Confirm you are engaged in the business of gasfitting within Sheffield city limits.
• Have your legal business name exactly as it appears on your Sheffield business license.
• Complete the bond application and review the quoted premium.
• Pay the premium and receive the executed $2,500 bond payable to the City of Sheffield.
• Submit the bond to the Sheffield city clerk for approval and filing.
• Keep your Sheffield business license current. Licenses expire December 31 and renew in January.

Detailed Information About the Alabama Gas Fitting Contractor ($2,500) Bond:

Who has to post it

The requirement applies to every person engaged in the business of gasfitting in Sheffield. It sits in Chapter 106 of the Sheffield Code, the buildings and building regulations chapter, at Section 106-20. The amount is a flat $2,500. The ordinance sets no tiers and no grandfather exemption.

What the bond guarantees

Section 106-20 attaches three conditions to the bond. You will faithfully observe the city's laws on gas installation. You will hold the city harmless from claims that arise from negligence in your installation work. You will indemnify any person injured because you violated the city's ordinances on gas piping. A person harmed by noncompliant gas work, or the city itself, can claim against the bond up to $2,500. If the surety pays, it will look to you for repayment.

How it is filed

The bond is payable to the City of Sheffield, written by a surety company authorized to do business in Alabama, and approved by and filed with the city clerk. The clerk's office is at 600 N. Montgomery Avenue. Confirm the current form and filing steps with the clerk before the bond is issued.

The business license runs on its own calendar

Sheffield business licenses must be bought before operations begin, expire December 31 and are renewed in January. The bond is a separate filing, so keep it in force while you hold the license and do gas work in the city.

What it costs

You pay a premium to the surety rather than the $2,500 face amount. The premium is set by the surety after reviewing the applicant, and the quote reflects that review.

Eligibility and Requirements for a Alabama Gas Fitting Contractor ($2,500) Bond:

• Bond amount of $2,500, payable to the City of Sheffield.
• Surety company authorized to do business in Alabama.
• Approval by the Sheffield city clerk before the bond is accepted.
• Conditions to observe city gas laws, hold the city harmless for installation negligence, and indemnify persons injured by gas piping violations.
• A Sheffield business license for each business location.

Alabama Gas Fitting Contractor ($2,500) Bond FAQs:

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