Contractor License ($10,000) Bond - City of Monticello, AR in Arkansas

Brief Summary

Monticello will not issue a building, plumbing or electrical permit to a contractor until a current $10,000 surety bond is on file with the city. The bond is a one-time setup item for each contractor, you pay a premium instead of tying up $10,000, and once it is filed you can pull permits for every job in town while it stays in force.

The City of Monticello requires contractors to submit their license and keep a current $10,000 surety bond on file with the city before a permit is issued. The city code spells out the $10,000 bond for anyone doing electrical business in Monticello and for every master plumber, and the city's permit checklist applies it to all plumbing and electrical work except work done by an owner on their own residence.

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How to Apply for a Contractor License ($10,000) Bond:

• Confirm the type of work. Plumbing and electrical contractors are named in the code, and the city asks all contractors pulling permits to have the bond on file.
• Have your state contractor or trade license number ready, since the city asks for the license along with the bond.
• Use the exact legal business name that will appear on your permit applications.
• Complete the bond application and review the quoted premium.
• Pay the premium and receive the signed $10,000 bond naming the City of Monticello.
• Deliver the bond to the Monticello permit office before applying for a building, utilities or electrical permit.

Detailed Information About the Arkansas Contractor License ($10,000) Bond:

Who has to post this bond

The city's licenses and permits page states that all contractors must submit their license and have a current $10,000 surety bond for the City of Monticello on file to obtain a permit. Two sections of the Monticello Code of Ordinances set the amount in writing.

Section 7-129 requires every person, firm or corporation doing electrical business in the city to deliver a $10,000 bond with a surety bonding company. Section 7-130 says no electrical permit will be issued until the required license and bond are in place.

Section 19-6 requires every master plumber doing business in the city to deliver a $10,000 bond on the same terms. No plumbing permit is issued to a master plumber unless the bond is delivered and in full force.

Who is exempt

The city permit checklist says bonding is required for anyone doing plumbing or electrical work with the exception of the owner/resident. Section 7-133 also states that an individual doing his or her own electrical work personally does not have to make the bond, and that the licensing rules do not reach an owner working on an existing or under construction primary residence as provided in A.C.A. 20-31-103. Homeowners who do their own plumbing on a single family residence can be issued a permit under Section 19-5.

What the bond covers

The bond indemnifies the city or any citizen for damage caused when the contractor fails to comply strictly with the city's electrical or plumbing rules. If a homeowner or the city suffers a loss from noncompliant work, a claim can be made against the bond. The contractor must repay the surety for any claim it pays.

Before you file

The city's ordinances do not prescribe a bond form number. Ask the Monticello permit office at 114 West Wood Ave (870-367-4402) whether it has its own bond form or will accept the surety's standard form, and how it wants the original delivered, before the bond is issued.

Eligibility and Requirements for a Arkansas Contractor License ($10,000) Bond:

• Bond amount of $10,000, set by Monticello Code Sec. 7-129 and Sec. 19-6.
• Written by a surety bonding company.
• City of Monticello, Arkansas as obligee.
• Bond kept current and in full force for as long as you pull permits in the city.
• Owner credit review, which mainly affects the premium rate.

Arkansas Contractor License ($10,000) Bond FAQs:

Official and Additional Resources for the Arkansas Contractor License ($10,000) Bond: