Surety Bond Encyclopedia

Tradesman Contractor ($10,000) Bond - City of East Point, GA in Georgia

Brief Summary

The $10,000 tradesmen bond lets an electrician, plumber, HVAC or other trade contractor pull East Point permits without asking each client for a notarized waiver. It is a continuous bond on the city's own form, so it stays on file job after job.

The City of East Point, Georgia requires trade contractors to post a $10,000 Tradesmen bond under the city's Code Compliance Bond Ordinance. The bond runs to East Point and guarantees the contractor will follow the city's building and other codes and correct violations for one year after final inspection. A property owner can waive the bond for a single permit with the city's notarized waiver form.

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

  • Use the City of East Point Tradesmen bond form for the $10,000 bond.
  • Have your East Point business license number and any state trade certification ready.
  • Fill in the bond's effective date. No covered work may start before it.
  • Complete the bond application and review the quoted premium.
  • Pay the premium and have the surety sign and seal the bond.
  • File the original bond with the Planning and Community Development Department before pulling permits.

Detailed Information About the Georgia Tradesman Contractor ($10,000) Bond:

The one year tail catches people off guard

The East Point Tradesmen bond does not end when the inspector signs off. The contractor agrees to correct code violations found during construction and for one year from final inspection. Routine maintenance, abuse, later modification and normal wear and tear are excluded. If the contractor does not make the correction, the surety must remedy the default within forty five days of notice from the city.

Amount and obligee

The penal sum is $10,000 and the bond is made to East Point, Georgia. The surety's total liability stays capped at $10,000 no matter how many years the bond runs or how many premiums are paid. If the Chief Building Official finds a violation, the city can sue the contractor and the surety jointly and severally.

Continuous coverage and cancellation

The bond is continuous and covers all construction by the contractor, its agents and employees. The contractor warrants that no covered work started before the bond's effective date. The surety can cancel as to future liability with thirty days' written notice to the contractor and to the Chief Building Official of the Planning and Community Development Department. Future liability means jobs not yet permitted or begun when cancellation takes effect.

The owner waiver option

East Point's Code Compliance Bond Waiver and Indemnification form lets a property owner waive the bond for the named contractor on a single permit. Electrical, Fire Alarm, Fire Sprinkler, HVAC and Mechanical, and Plumbing are scope boxes on that form. It must be an original with a notary seal, and the owner agrees to indemnify the city and the contractor. Trades who permit work in East Point regularly will find the bond simpler.

Licensing still applies

The city's building permit application separately requires a current business license, a copy of state certification where applicable, and a state issued ID.

Eligibility and Requirements for a Georgia Tradesman Contractor ($10,000) Bond:

  • Bond amount of exactly $10,000.
  • East Point, Georgia named as obligee.
  • Correction of code violations for one year after final inspection.
  • Current business license, copy of state certification where applicable, and state issued ID on the permit application.
  • Credit review of the business owners by the surety, which sets the premium rate.

Georgia Tradesman Contractor ($10,000) Bond FAQs:

How long am I on the hook after a job is finished?

The bond requires you to correct code violations for one year from final inspection, excluding routine maintenance, abuse, modification and normal wear and tear.

What happens if I do not fix a violation?

The surety must remedy the default within forty five days of notification by the city, and then seeks repayment from you. The city can also sue you and the surety jointly and severally.

Can a homeowner waive the bond?

For a single permit, yes. The property owner signs East Point's Code Compliance Bond Waiver and Indemnification form, as an original with a notary seal. Copies and faxes are not accepted.

How does cancellation work?

The surety gives thirty days' written notice to you and the Chief Building Official. Work already permitted or begun stays covered. Jobs not yet permitted or started are not.

What does the bond cost?

The premium is based on the $10,000 bond amount and a credit review of the owners. You get the exact price when you apply.

Official and Additional Resources for the Georgia Tradesman Contractor ($10,000) Bond:

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