Surety Bond Encyclopedia

Contractor License Bond - City of Berwyn, IL in Illinois

Brief Summary

In Berwyn the first question is which tier you fall in. Most licensed trades post a $10,000 bond, but general contractors, excavators, demolition and wrecking firms, sign and awning installers, crane operators, environmental contractors and waste haulers post $25,000. Get the tier right, bring the original signed bond to the Collector's Office with your application and insurance certificate, and the city can issue a temporary license the same day.

The City of Berwyn requires every contractor and subcontractor to be licensed and bonded before any building permit is issued for their work. The contractor license bond is $10,000 for most trades and $25,000 for general contractors, awning installers, crane operators, environmental, excavating, sign installers, waste haulers, and wrecking and demolition contractors. It is filed as an original surety bond with the City of Berwyn Collector's Office.

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How to Apply for a Contractor License Bond:

Identify your contractor classification to confirm whether your bond is $10,000 or $25,000.
Complete the City of Berwyn contractor license application, one original for each contractor and subcontractor.
Apply for the bond in the exact business name on the application, with the City of Berwyn as obligee.
Confirm the bond carries the city's hold harmless condition and is signed by the principal.
Obtain a certificate of liability insurance for each license, naming the City of Berwyn as certificate holder.
Deliver the original bond, application, ID copy, insurance certificate, any trade license and the fee to the Collector's Office at 6700 W. 26th Street.

Detailed Information About the Illinois Contractor License Bond:

Which bond amount applies to you

Berwyn's bond checklist sets two amounts. The standard contractor license bond is $10,000. The city requires $25,000 instead from general contractors, awning installers, crane operators, environmental contractors, excavating contractors, sign installers, waste haulers, and wrecking and demolition contractors. Check your classification before the bond is written, because the amount on the bond has to match the license type you are applying for.

What the bond must say

The city specifies the condition it expects to see. The bond must state that the principal shall save and keep harmless the City of Berwyn from all liability to any person by reason of damage to any person or property as a result of the operation performed under such license. It must be an original surety bond signed by the principal.

No license, no permit

Berwyn's Building Permit Application states that all contractors performing work at the address must be licensed and bonded with the City of Berwyn, and the bond checklist states that no building permits will be issued unless all contractors are licensed and bonded. That includes subcontractors. A homeowner's permit can stall because one trade on the job has not filed.

What goes with the bond

The Collector's Office checklist asks for an original completed application for each contractor and subcontractor, corporation papers or a corporate seal if the business is incorporated, a copy of the owner's valid driver's license or state ID, the license fee for your contractor type, and a certificate of liability insurance for each license naming the City of Berwyn as certificate holder. Certain trades must also show a separate credential: a state roofer license, a municipal electrician license, an EPA card for HVAC work, an Illinois plumbers license, a fire alarm contractor license, sewer digger certification, or lead certification for general and window and door contractors. Once everything is in order the city issues a temporary license the same day.

A second bond for some plumbing work

Plumbing contractors should know the checklist also calls for a $50,000 bond for parkway use and sidewalk or street openings when the Building Department requests it. That is an additional instrument, not a substitute for the contractor license bond.

Filings go to the City of Berwyn Collector's Office, 6700 W. 26th Street, Berwyn, Illinois 60402, phone (708) 788-2660. Confirm the current fee for your contractor type with that office before you file.

Eligibility and Requirements for a Illinois Contractor License Bond:

Original surety bond signed by the principal. Copies are not accepted.
$10,000 bond for most trades, $25,000 for general, awning, crane, environmental, excavating, sign, waste hauling, and wrecking and demolition contractors.
Bond wording that holds the City of Berwyn harmless from liability for damage to persons or property arising from work under the license.
Copy of the business owner's valid driver's license or state ID.
Trade credentials where applicable, such as an Illinois plumbers license, state roofer license, municipal electrician license or EPA card.

Illinois Contractor License Bond FAQs:

Is my Berwyn bond $10,000 or $25,000?

It depends on your license type. The City of Berwyn requires $25,000 from general contractors, awning installers, crane operators, environmental, excavating, sign installers, waste haulers, and wrecking and demolition contractors. Other licensed trades post $10,000.

Do subcontractors need their own bond?

Yes. Berwyn's checklist calls for an application from all contractors and subcontractors, and no building permit is issued unless every contractor on the job is licensed and bonded.

I am a plumber. Is one bond enough?

For the license, yes. The city's checklist notes that plumbing contractors may also be asked by the Building Department for a $50,000 bond covering parkway use and sidewalk or street openings. That is filed in addition to the license bond.

How fast can I get licensed?

The City of Berwyn issues a temporary license the same day once every item on the checklist, including the original bond and insurance certificate, has been submitted.

How is the premium determined?

The surety bases the premium on the bond amount for your tier and its review of the business owner, mainly personal credit and any prior claims. A $25,000 bond costs more than a $10,000 bond for the same applicant.

What happens if a customer has a problem with my work?

Berwyn offers residents a complaint form when they believe a contractor has not fulfilled a contract. The City Collector investigates and works toward a resolution. A valid claim for damage covered by the bond condition can be made against the bond.