Surety Bond Encyclopedia

Contractor License ($5,000) Bond - City of Mcpherson, KS in Kansas

Brief Summary

McPherson will not issue a building permit to a contractor without a current city contractor license. This $5,000 contractor license bond names the City of McPherson as obligee, and a surety bond lets you meet the requirement for a premium instead of tying up $5,000 in cash.

The City of McPherson, Kansas requires a current contractor license from every contractor who applies for a building permit, and licenses run January 1 through December 31. This listing covers the $5,000 contractor license bond with the City of McPherson as obligee. The city's insurance requirement is separate from the bond. Confirm the current bond amount, form and filing steps with the McPherson Building Inspections Department before the bond is issued.

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

Pick the license class that matches your work: A, B, C, D specialty, Local Commercial or Local Residential.
Confirm with McPherson Building Inspections that your class must file the bond and get the current bond form.
Line up general liability coverage of $1,000,000, or $500,000 for Class D, with the City of McPherson as additional insured.
Complete the bond application using the exact legal name on the city license application.
Pay the premium and sign the $5,000 bond naming the City of McPherson as obligee.
File the bond, insurance certificate and license application with the city before applying for a permit.

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

Insurance does not replace the bond

McPherson's licensing page puts most of its weight on liability insurance. Class A, B, C and Local licenses need at least $1,000,000 in general liability coverage, and Class D specialty licenses need at least $500,000, with the City of McPherson added as an additional insured. That certificate and this bond do different jobs. Insurance pays for damage the contractor causes. The bond is the contractor's guarantee to the city, and if the surety pays a valid claim the contractor repays it.

Who needs a license

The city states that a current contractor license is required for all contractors to apply for and receive a building permit. Employees working under a licensed contractor do not need their own license, and homeowners may work on their own residence. Every subcontractor working under a homeowner's permit must be licensed.

License classes

Class A Commercial covers construction, remodeling, repair and demolition of any structure. Class B Commercial covers structures of no more than 3 stories, nonstructural remodeling, tenant finish and repairs. Class C Residential covers single family and duplex work. Class D specialties are framing, concrete and swimming pool contractors. The city also issues Local Commercial and Local Residential licenses. Each class has its own experience requirement, and Classes A, B and C call for a Certificate of Competency or a relevant degree.

Renewal

Licenses run January 1 through December 31. Renewals filed from December 1 through January 31 carry no penalty. A renewal filed after January 31 is charged the original license fee. Renewal also requires continuing education, ranging from 3 to 6 contact hours depending on the class.

Bond amount and filing

This listing is for $5,000 with the City of McPherson as obligee. Confirm with the Building Inspections Department which license classes must file it, and get the current bond form, before the bond is issued.

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

A current McPherson contractor license before any building permit is issued.
Bond amount of $5,000 as listed, with the City of McPherson as obligee.
General liability insurance of at least $1,000,000 for Classes A, B, C and Local, or $500,000 for Class D, naming the city as additional insured.
Qualifying experience for the class, plus a Certificate of Competency or relevant degree for Classes A, B and C.
Continuing education hours at each annual renewal.

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

I already carry a $1,000,000 liability policy. Does that cover the bond requirement?

No. The insurance requirement and the bond are separate. Insurance protects you when you cause damage. The bond is your guarantee to the City of McPherson, and you repay the surety for any valid claim it pays.

Do my employees need their own license?

No. The city exempts employees working under a licensed contractor. The licensed contractor is responsible for all work done by its workers, agents and subcontractors.

I am a homeowner working on my own house. Do I need a license?

Homeowners doing work on their own residence are exempt. Any subcontractor you hire under your homeowner permit must be licensed with the city.

When does my license expire and when should I renew?

Licenses run January 1 through December 31. File the renewal between December 1 and January 31 to avoid a penalty. After January 31 the city charges the original license fee. Keep the bond in force for the full license year.

How is the premium set?

The surety quotes the premium after reviewing the bond amount and the owner's credit and claims history. The $5,000 figure is the coverage limit, not the price.