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Home builders and remodelers working as residential general contractors in Grovetown post a $15,000 bond, not the $20,000 commercial one. Getting that right saves premium and a rejected filing. You pay a yearly premium instead of tying up $15,000 in cash.
The City of Grovetown in Columbia County asks residential general contractors for a $15,000 surety bond. It sits between the $20,000 commercial general contractor bond and the $5,000 contractor license bond, with electrical, plumbing and HVAC contractors at $1,000. The city bond is separate from the Georgia residential or general contractor license required under OCGA 43-41-17.
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Grovetown sets contractor bond amounts by the kind of work. A residential general contractor posts $15,000. A company that also takes commercial general contracting jobs should expect the $20,000 commercial bond to come into play.
If you do both kinds of work, ask the city whether one bond at the commercial amount covers both classifications.
OCGA 43-41-17(a) bars any person or business from engaging in residential contracting in Georgia without a current state license, held directly or through a licensed qualifying agent. The city bond does not stand in for it. The same section limits how far a city can add its own licensing rules for state-licensed contractors, while letting certain local rules in effect on July 1, 2004 continue for general contracting inside that city. Confirm Grovetown's current requirements before you order the bond.
The City of Grovetown is the obligee. The bond promises that the contractor will comply with city ordinances and building rules on work inside city limits. If a valid claim is made, the surety pays up to $15,000 and then seeks repayment from the contractor. The bond protects the city and the public, not the contractor.
Contact Grovetown City Hall, 103 Old Wrightsboro Road, for the current bond form, the exact principal name it expects, and whether the bond is filed at registration or with your first permit. The surety sets the premium after reviewing owner credit and business history.
Residential general contractors post $15,000. The $20,000 bond is for commercial general contracting. If you do both, ask Grovetown whether the commercial bond covers your residential work too.
The state license under OCGA 43-41-17 and the city bond are separate items. Check with Grovetown City Hall on what it currently requires from state-licensed contractors before you start work.
An annual premium set by the surety after it reviews your credit and business history. You pay the premium, not the $15,000 bond amount.
The surety investigates. If the claim is valid it pays up to $15,000, and you must repay the surety.
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