Contractor License ($5,000) Bond - City of Oskaloosa, IA in Iowa

Brief Summary

Oskaloosa will not issue or renew a city electrician's or plumber's license until a $5,000 bond is on deposit with the city clerk. Licenses run one year from the date of issue, so keep the bond in force through every renewal. An annual surety bond keeps the license active without setting aside $5,000 in cash.

The City of Oskaloosa requires a $5,000 bond, with sureties approved by the clerk and mayor, from anyone holding a city electrician's license under Municipal Code 5.16.070 or a city plumber's license under 5.20.090. The bond guarantees compliance with city ordinances, payment of fines and penalties, and protection of the city from liability caused by the licensee's neglect or incompetency. Licenses expire one year from the date of issue.

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How to Apply for a Contractor License ($5,000) Bond:

• Confirm which city license you hold or are applying for, electrician under Chapter 5.16 or plumber under Chapter 5.20.
• Have your name or business name exactly as it appears on the city license application.
• Owner name, home address and Social Security number for the surety's credit review.
• Complete the bond application and review the quoted premium.
• Pay the premium and receive the executed $5,000 bond naming the City of Oskaloosa.
• Deposit the bond with the Oskaloosa city clerk together with your certificates of liability and workers' compensation insurance and the annual license fee.

Detailed Information About the Iowa Contractor License ($5,000) Bond:

Who has to post this bond

Oskaloosa licenses the trades in Title 5 of its Municipal Code. Section 5.16.040 bars anyone from installing, repairing or altering electrical work unless licensed as an electrician, and section 5.20.040 does the same for plumbing work. Before a person is issued a city electrician's license, section 5.16.070 requires a bond in the sum of $5,000 deposited with the clerk. Section 5.20.090 sets the same $5,000 bond for city plumbers' licenses. In both chapters the sureties must be approved by the clerk and the mayor.

What the bond guarantees

The bond is conditioned on three things. The licensee will comply with city ordinances. The licensee will pay any fines and penalties. And the city will be held free from liability sustained because of the licensee's neglect or incompetency.

Insurance goes in with the bond

The code also requires certificates showing public liability insurance with limits of at least $100,000 and $300,000, $50,000 of property damage coverage, and workers' compensation. Have the certificate ready when you deposit the bond.

Fees, term and exceptions

City electrician's licenses carry an annual license fee of $25 under section 5.16.060. For plumbers, section 5.20.080 sets a $10 examination fee and annual license fees of $25 for a master plumber, $10 for a journeyman plumber and $25 for a maintenance license. Every city license expires one year from the date of issue and is renewed by paying the annual fee to the clerk.

Apprentices and helpers working under the direction and supervision of a licensed electrician do not need their own license under section 5.16.050. Homeowners may do plumbing work in their own residence only to the extent it is limited to the building drain, under section 5.20.140.

Eligibility and Requirements for a Iowa Contractor License ($5,000) Bond:

• Bond amount of exactly $5,000.
• City of Oskaloosa named as obligee, with the surety approved by the city clerk and mayor.
• Bond conditioned on ordinance compliance, payment of fines and penalties, and holding the city free from liability for the licensee's neglect or incompetency.
• Liability insurance of at least $100,000 and $300,000, $50,000 property damage, and workers' compensation.
• Premium set by the surety based on the owner's credit and trade experience.

Iowa Contractor License ($5,000) Bond FAQs:

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