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

Brief Summary

Sherwood will not issue a building permit to a contractor until a $10,000 bond is delivered to the city and in force. Line it up before you bid work in town, pay a premium instead of tying up $10,000, and the bond covers every permitted job you take in Sherwood while it stays active.

Sherwood Municipal Code 11.28.18 requires every building trade contractor or builder who contracts to build or repair buildings needing a permit in Sherwood, including builders who sublet the work, to deliver a $10,000 bond with a surety bonding company to the city. No building permit is issued to a building contractor until the bond is delivered and in full force. Homebuilders must also show proof of registration with the state under 11.28.20.

We can help with all Arkansas bonds!

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

• Confirm you contract to build or repair buildings that need a Sherwood permit, either directly or by subletting the work.
• Have your homebuilder registration or state contractor license details ready for the city's proof of registration check.
• Use the exact 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 Sherwood.
• Deliver the bond to the city before applying for a building permit.

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

Who has to post this bond

Section 11.28.18 of the Sherwood Municipal Code, adopted by Ordinance 1645, covers every building trade contractor or builder who makes contracts for the erection, construction or repair of buildings for which a permit is required. It also covers builders who take those contracts and sublet all or part of the work. Each must deliver a $10,000 bond with a surety bonding company to the City of Sherwood.

The bond comes before the permit. The code says no building permit shall be issued to any building contractor unless the bond has been delivered to the city and is in full force and effect.

What the bond covers

The bond indemnifies the city or any citizen from damage caused by the contractor's failure to comply strictly with the ordinances of the City of Sherwood. A property owner hurt by work that breaks city code can make a claim, and the contractor must repay the surety for anything it pays.

Other items the city checks

Section 11.28.20 requires homebuilders and other entities to furnish satisfactory proof of registration as a homebuilder with the state before a building permit or related permit is issued. Section 11.28.19 incorporates Act 859 of 1987 by reference.

Trade work has its own bonds in the code. Master plumbers post a $2,000 bond under 11.08.08, and gas fitters post a $500 bond with the City Clerk under 11.32.08. Those are in addition to, not a substitute for, the $10,000 building contractor bond when you are contracting for building work.

The code does not name a bond form. Confirm the current form and filing steps with the Sherwood Permits and Planning office at 2199 E. Kiehl Ave. before the bond is issued.

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

• Bond amount of $10,000 under Sherwood Municipal Code 11.28.18.
• Written by a surety bonding company.
• City of Sherwood, Arkansas as obligee.
• Bond delivered to the city and kept in full force while you hold building permits.
• 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: