Contractor License Bond - Village of Alsip, IL in Illinois

Brief Summary

Alsip does not use one contractor bond. It uses a table, and the number you need depends on the trade you register. A general contractor posts $10,000, an electrical contractor $5,000, a plumbing or sewer and drain contractor $20,000, a sign contractor $25,000, and an excavator $10,000. Every one of them is written for a two year period, which means fewer renewals and one premium covering two license years.

The Village of Alsip requires a license and permit bond from contractors registering with the Village, and section 12-22 of the Municipal Code sets the amount by trade rather than at a single figure. The Village of Alsip is the obligee. All license permit bonds run for a period of two years. A plumbing contractor who provides a State Public Health license posts no bond at all, and a sign contractor can substitute a $100,000 certificate of insurance for the bond.

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How to Apply for a Contractor License Bond:

• Identify your trade category first, because it sets the bond amount: general contractor $10,000, electrical $5,000, plumbing $20,000, sign $25,000, excavator $10,000, sewer and drain $20,000.
• Plumbing contractors should check whether the State Public Health license removes the bond entirely.
• Sign contractors should compare the $25,000 bond against a $100,000 certificate of insurance.
• Subcontractors provide a certificate of insurance rather than a bond.
• Have the exact legal business name for the license application.
• Owner or principal name, home address and Social Security number for the credit review.
• Complete the bond application and confirm the bond is written for a two year period.
• File the executed bond with the license application and fee at the Village of Alsip Building Department.

Detailed Information About the Illinois Contractor License Bond:

The amount depends entirely on your trade

Section 12-22 of the Alsip Municipal Code lists the bond by contractor category. General contractor is $10,000 for two years. Electrical contractor is $5,000 for two years, and the Village also wants a copy of the City of Chicago electrical license and the City of Chicago electrical photo ID. Plumbing contractor is $20,000 for two years, but only if no State License (055 or 058) and no City of Chicago license is provided. Sign contractor is $25,000 for two years, or a $100,000 certificate of insurance instead. Excavator is $10,000 for two years. Sewer and drain contractor is $20,000 for two years. All subcontractors file a certificate of insurance rather than a bond.

The code puts it plainly: all license permit bonds shall be for a period of two years. That is unusual and it matters when you price the bond, because the term is not the one year most contractors expect.

The plumbing exemption is the one people miss

Read the plumbing line closely. The $20,000 bond applies if you do not hand over a state or Chicago license. If you provide the State Public Health license, no bond is required. Illinois licenses plumbers through the Department of Public Health, so a properly licensed Illinois plumbing contractor registering in Alsip should be handing over the license, not buying a $20,000 bond.

Sign contractors have a choice

The code gives sign contractors two ways to satisfy the requirement, a $25,000 bond for two years or a $100,000 certificate of insurance. Which one is cheaper depends on what your general liability program already covers, so price both before defaulting to the bond.

Electrical contractors face two separate bonds

Section 12-22 sets the $5,000 license bond for two years. Section 6-52 is a different instrument. It requires every electrical contractor to post a performance bond before an electrical permit is issued, in a minimum amount of $5,000 or ten percent of the cost of the electrical work, whichever is greater. On a large electrical job that second number is the one that moves. Section 6-52(c) does let the board of trustees waive the performance bond requirement.

The completion bond is a deposit, not a surety bond

Section 6-110 requires a completion bond on all permits over $100.00, charged as part of the building permit: $100 on a permit of $100 to $1,000, $200 from $1,001 to $5,000, $300 from $5,001 to $10,000, $400 from $10,001 to $15,000, and $500 at $15,000 and up. It is refunded once final inspections are approved and the occupancy permit is issued, and it is forfeited to the Village if you never request final inspections and the permit expires. Section 6-110(a) also states that the license and permit bond, under Compliance Bond Ordinance 86-1-3, applies to all contractors listed on a building permit.

Dates that cost money

The Alsip license year starts May 1 and section 12-6 expires every license on April 30 following issuance. No license runs longer than one year even though the bond runs two. Section 12-22 adds that any license due on May 1 but applied for on or after July 1 is assessed a $50.00 penalty as part of the annual license fee. Section 12-7 sends a renewal notice 30 days before renewal and a second notice 15 days after the renewal date, and 30 days after the renewal date the building commissioner or a designated agent issues a citation for each violation. Missing a renewal notice is not a defense.

Fees and one more trap

A general contractor license is $200.00 and the code lists all other contractors at $100.00, with junk and scavenger at $600.00. The trade list in section 12-22 is long and specific, covering carpentry, masonry, roofing and siding, glazing, tuckpointing, fence erectors, tank installation, sprinkler and steam fitting, elevator, wrecking, moving, raising and shoring, and many more, each at $100.00. Section 12-14 requires a separate license for each location in the Village. Section 12-22 also notes that in town contractors with a business license plus bond are not required to pay these additional fees, but they must still provide the bond.

Eligibility and Requirements for a Illinois Contractor License Bond:

• A surety company authorized to write bonds in Illinois.
• Bond amount matching the trade category in section 12-22 of the Alsip Municipal Code.
• Bond written for a two year period, as section 12-22 requires of all license permit bonds.
• Village of Alsip named as obligee.
• Business name on the bond matching the license application.
• Electrical contractors: a copy of the City of Chicago electrical license and the City of Chicago electrical photo ID.
• A separate license for each location in the Village.
• Owner credit review. At these bond sizes credit generally shapes the rate rather than eligibility.

Illinois Contractor License Bond FAQs:

Official and Additional Resources for the Illinois Contractor License Bond: