Contractor License ($10,000) Bond - City of Kankakee, IL in Illinois

Brief Summary

Kankakee sets one number for every contractor it registers. Section 8-154 of the Municipal Code says $10,000, bound to the city, and it does not change with the trade or the size of the job. What surprises people is who has to register. The city's definition of contractor covers handyman services, tree removal and driveway work, so plenty of small operators who assumed they were outside the ordinance are inside it.

The City of Kankakee requires every applicant for contractor registration to deposit a license or surety bond with the Building and Code Enforcement Department in the penal sum of $10,000, bound to the city, under Municipal Code section 8-154. The bond must come from a company approved and authorized to issue bonds by the state and is conditioned on faithful compliance with the applicant's duties and with all applicable codes. It cannot be canceled without ten days prior written notice to the city unless the city releases it.

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

• Confirm the work actually needs registration. Section 8-156 requires it only for work that requires a building permit.
• Check the exemptions: a landlord working on his own property individually or through a directly supervised employee, and a property owner doing all the work himself with all subcontractors registered and a signed affidavit on file.
• If you are roofing or plumbing, confirm your Illinois state license first, because the city registration does not replace it.
• Have the exact legal business name for the registration.
• Owner or principal name, home address and Social Security number for the credit review.
• Complete the bond application and review the quoted premium.
• Pay the premium and receive the executed $10,000 bond bound to the City of Kankakee.
• File the bond, the certificate of insurance naming the City as additional insured, and the $150 annual fee with the Building and Code Enforcement Department.

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

One amount, no tiers

Section 8-154 is short and there is nothing in it to argue about. A license bond or surety bond, from a company approved and authorized to issue bonds by the state, bound to the city in the penal sum of $10,000.00, conditioned on faithful compliance with the applicant's duties and compliance with all applicable codes. General contractor, subcontractor, one trade or six, the figure stays at $10,000.

The definition of contractor is wider than most

Section 8-151 defines a contractor as any individual doing work on a residence, a commercial or industrial structure or any real property, and any company or corporation engaged in the business of building, constructing, altering, rehabilitating, repairing, covering or demolishing any building, structure, sidewalk, street, fence, swimming pool, driveway, HVAC or mechanical equipment, or work involving trees and grounds, tree removal service or any other related construction activity, including plumbing and electrical work and handyman services. Handyman services being named outright is the part people miss.

Who is outside it

A landlord who performs work on his own property, either individually or through an employee under his direct supervision, is not a contractor for purposes of the ordinance under section 8-151. Section 8-156 adds two more limits. Registration is required only to do work that requires a building permit under city ordinance, so work that needs no permit needs no registration. And a property owner performing his or her own work on a project does not have to register, provided every subcontractor on the job is registered with the city and the owner signs an affidavit attesting that they are performing all of the work on the project.

One caveat sits at the end of section 8-151. If state law requires a person doing work such as roofing or plumbing to hold a state license, that person must be licensed by the state in order to perform the work. Being registered with Kankakee does not stand in for an Illinois roofing or plumbing license.

Fee and term

Section 8-153 sets the contractor registration fee at $150.00 per year, payable at the Building and Code Enforcement Department, and says annual renewal will be one year from issuance of the prior registration. That is a rolling anniversary date rather than a fixed city-wide renewal date, so track your own issue date.

Insurance is a separate condition and it can shut you down

Section 8-155 requires a certificate of liability insurance from a company approved and authorized by the state, kept in force for the full registration period, listing the City of Kankakee as an additional insured, written for minimum amounts of $1,000,000.00 general liability, $100,000.00 workers compensation and employers liability, and $50,000.00 property damage liability. A contractor with no employees submits a sworn and notarized affidavit to that effect at the time of application. If the insurance expires, is canceled or otherwise lapses, the registration is immediately revoked and all work in the city has to stop. The certificate has to carry ten days prior written notice of cancellation to the city. Keeping the bond current does nothing for you if the certificate drops.

Electrical contractors have a separate license

Section 80.50 in the electrical code article makes it unlawful to engage in the business of electrical contractor in Kankakee without a city license. A contractor who passes the required examination pays $50.00 per year. A contractor already licensed by written examination in another Illinois municipality skips the exam but registers with the city's Electrical Inspector and pays $100.00 per year. Either way the license expires on the 30th day of April each year, which is a different date from your registration anniversary. The owner of a one or two family dwelling he or she occupies or intends to occupy may install electrical wiring, devices and equipment in that dwelling, excluding electrical service meter cabinets, distribution breakers and fuse panels.

Working outside the city limits is a separate filing

Kankakee County runs its own contractor registration program for work requiring a building permit in unincorporated Kankakee County. It also calls for a license and permit surety bond of $10,000, but bound to the County of Kankakee rather than the city, with its own $150 fee payable to the County Treasurer and the same insurance limits. Same figure, different obligee, so a contractor working both sides of the city line files two bonds.

What happens if you get it wrong

Section 8-157 lets the building official suspend or revoke a registration for incorrect, inaccurate or incomplete information or for violating any provision of the chapter. Section 8-160 sets the fine at a minimum of $150.00 and a maximum of $750.00 per violation per day the violation occurs. Section 8-158 also puts daily cleanup of dirt, mud and debris in the public right of way on the contractor, and in a new subdivision with more than one builder it makes the developer ultimately responsible.

One note on the published code. Section 8-152, titled Registration, appears on the city's own code page with no text under it, so the procedural detail has to come from the Building and Code Enforcement Department at 295 N Harrison Ave rather than from the ordinance.

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

• A company approved and authorized to issue bonds by the State of Illinois.
• Bond in the penal sum of exactly $10,000, bound to the City of Kankakee.
• Bond conditioned on faithful compliance with the applicant's duties and with all applicable codes.
• No cancellation without ten days prior written notice to the city, unless the city releases the bond.
• Certificate of liability insurance at $1,000,000 general liability, $100,000 workers compensation and employers liability, and $50,000 property damage, with the City of Kankakee as an additional insured and ten days notice before cancellation.
• A sworn and notarized no employee affidavit if the contractor has no employees.
• Business name on the bond matching the registration application.
• Owner credit review. At this bond size credit generally shapes the rate rather than eligibility.

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

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