Surety Bond Encyclopedia

Contractor License ($2,000) Bond - City of Fort Smith, AR in Arkansas

Brief Summary

If you are an electrical contractor, master plumber or HVACR contractor working in Fort Smith, the city wants a $2,000 bond on file before you start. It is a small bond with a modest annual premium, and having it in place keeps your permits flowing.

The Fort Smith Code of Ordinances sets a $2,000 bond in favor of the city for three trades: electrical contractors under section 6-132, master plumbers and special registration holders under sections 6-240 and 6-241, and HVACR contractors under section 6-356. The bond is filed with the city and backs payment of fines, fees and penalties along with the other conditions the code lists for each trade.

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How to Apply for a Contractor License ($2,000) Bond:

  • Hold the Arkansas license for your trade, since the city will not register you without it.
  • Apply for the bond in the exact name you use on your city registration or license.
  • Pay the premium and receive the executed $2,000 bond naming the City of Fort Smith.
  • Confirm the current bond form with the Fort Smith city clerk.
  • File the bond with the city clerk before starting work in the city.
  • Renew the bond each year so it stays in force with your registration.

Detailed Information About the Arkansas Contractor License ($2,000) Bond:

Which contractors post it

Fort Smith does not use one general contractor bond. The $2,000 figure shows up in three separate trade sections of Chapter 6 of the city code.

**Electrical contractors.** Section 6-132 requires an electrical contractor to execute a $2,000 bond in favor of the city and renew it every year. The surety must be a company authorized by the state.

**Master plumbers.** Section 6-240 says no one may do plumbing in the city unless licensed by the state and registered with the city plumbing inspector. Before starting work, every master plumber and special registration holder files a $2,000 bond with the city clerk as described in section 6-241. City registrations run for the calendar year and expire December 31.

**HVACR contractors.** Section 6-356 requires every HVACR contractor to file a $2,000 bond with the city clerk before entering on his duties.

What the bond covers

The conditions differ a little by trade. The electrical bond covers faithful conduct of the business in line with the city's electrical ordinances, payment of fines and penalties, and damages caused by negligent or unskilled work. The plumbing bond indemnifies the city for damages from inadequate work, failure to repair sidewalks, curbs and street surfaces damaged on a job, and unpaid fines, registration and permit fees, inspection charges and penalties. The HVACR bond covers sidewalk, curb and street damage and unpaid fines, license and permit fees, inspection charges and penalties. Sections 6-75 and 6-355 let the city demand unpaid permit fees from the surety.

Things people miss

A state license does not replace the city bond. The bond also has to stay in force, since the electrical section calls for annual renewal. Confirm the current bond form and filing steps with the city clerk before the bond is issued.

Eligibility and Requirements for a Arkansas Contractor License ($2,000) Bond:

  • Bond amount of $2,000 in favor of the City of Fort Smith.
  • Surety company authorized to do business in Arkansas.
  • Applies to electrical contractors, master plumbers and special registration holders, and HVACR contractors.
  • Current state license or registration for the trade.
  • Owner credit review by the surety, which sets the premium.

Arkansas Contractor License ($2,000) Bond FAQs:

Which trades need the Fort Smith $2,000 bond?

Electrical contractors under section 6-132, master plumbers and special registration holders under sections 6-240 and 6-241, and HVACR contractors under section 6-356 of the city code.

Where do I file it?

Plumbers and HVACR contractors file with the city clerk under sections 6-241 and 6-356. Electrical contractors execute the bond in favor of the city under section 6-132. Check with the city clerk for the current form.

Does the city collect unpaid permit fees from the bond?

It can. Sections 6-75 and 6-355 allow the city to demand unpaid fees from the surety bond, and the surety will then look to you for repayment.

What does the bond cost?

The surety sets the premium after reviewing the owner's credit and business history. Apply to see your actual quote.

Official and Additional Resources for the Arkansas Contractor License ($2,000) Bond:

Contractor License ($2,000) in Other Arkansas Locations

City of Benton, AR

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