Surety Bond Encyclopedia

Contractor License ($10,000) Bond - Village of Burnham, IL in Illinois

Brief Summary

Burnham will not issue a contractor license until a license bond payable to the Village of Burnham is in the file. The $10,000 bond is the minimum the Village asks for, it is quoted quickly, and you pay a premium instead of tying up $10,000 in cash. Because Burnham licenses have to be applied for fresh every year, keeping one bond in force year after year saves you from starting over each time.

The Village of Burnham, Illinois requires every general contractor and subcontractor applying for a Village contractor license to file a license bond payable to the Village of Burnham of $10,000 or more, together with liability insurance of $10,000 or more. The license fee is $200 a year for general contractors and $100 for subcontractors. Burnham contractor licenses are not renewable, so contractors reapply each year with a current bond and certificate of insurance.

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

Legal business name exactly as it will appear on the Burnham Contractor License Application.
Owner 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 naming the Village of Burnham.
Attach the bond, a certificate of liability insurance of at least $10,000 and the notarized application.
File with the Village and pay the $200 general contractor or $100 subcontractor fee.
Reapply each year with the bond still in force, since Burnham licenses are not renewable.

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

The license does not renew

The detail most contractors miss is on the face of the Village application: Burnham contractor licenses are not renewable. You must reapply each year. Every new application needs a license bond payable to the Village of Burnham and current liability insurance, so the bond has to be active on the date you file, not just the first time you licensed.

What the Village requires

The Contractor License Application lists the same core documents for sole owners, partnerships, corporations, LLCs and foreign corporations. Each applicant files a license bond payable to the Village of Burnham in the amount of $10,000 or more and a certificate of current liability insurance of $10,000 or more. Sole owners also attach a copy of their assumed name certificate from the Cook County Clerk. The application must be notarized, and licenses are not transferable from one contractor to another.

The Building Department adds trade specific paperwork. Plumbing and roofing contractors submit copies of their state licenses, and electricians provide the license of their supervising electrician.

Fees and where to file

The annual license fee is $200 for a general contractor and $100 for a subcontractor. The Village Building Department is at 14450 S. Manistee Ave., Burnham, Illinois 60633, phone 708-862-9150. The license covers the contractor side only. A separate building permit is still pulled for each job covered by the Village's permit rules.

What the bond does

The Building Department describes it as an indemnity bond payable to the Village. It is a promise to the Village that the licensed contractor will follow Burnham's building rules on work performed in the Village. If the Village has a valid claim, the surety pays it up to the bond amount and the contractor repays the surety. The bond protects the Village and the public, not the contractor.

How premium is set

The surety sets the annual premium after reviewing the owner's personal credit, time in business and the bond amount. Stronger credit means a lower rate. Confirm the current bond form and any wording the Village wants on it with the Burnham Building Department before the bond is issued.

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

License bond payable to the Village of Burnham in the amount of $10,000 or more.
Current liability insurance of $10,000 or more.
Notarized Contractor License Application.
Copy of the assumed name certificate from the Cook County Clerk for sole owners.
Copies of state licenses for plumbing and roofing contractors, and the supervising electrician's license for electrical contractors.

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

Is $10,000 the exact amount or a minimum?

The Village application reads $10,000 or more. $10,000 is the minimum that satisfies the license requirement, and it is the bond sold on this page.

Do I renew my Burnham contractor license each year?

No. The application states that contractor licenses are not renewable and that you must reapply each year. Each new application needs a bond and a current certificate of insurance, so keep the bond active between years.

Do subcontractors need the bond too?

Yes. The same license bond and liability insurance requirement applies to subcontractors. The only difference is the fee, which is $100 for a subcontractor and $200 for a general contractor.

I hold a state plumbing or roofing license. Does that replace the Village bond?

No. The Building Department asks plumbing and roofing contractors for copies of their state licenses in addition to the Village bond and insurance, not instead of them.

Can I transfer my license to another company?

No. Burnham contractor and subcontractor licenses are not transferable. A new business entity applies and bonds in its own name.