Surety Bond Encyclopedia

Contractor License ($5,000) Bond - City of Brookhaven, MS in Mississippi

Brief Summary

Brookhaven ties this bond to a specific set of trades. The City states plainly what has to be on file before performing electrical, HVAC or plumbing work inside the city limits, and it is three things: a surety bond bound to the City of Brookhaven for $5,000.00, proof of insurance, and a State of Mississippi license. Note the wording. On file before performing the work, not attached to a permit, so get it lodged before you take the job rather than when you pull the ticket. And the state licence comes first, because the City wants a copy of it.

The City of Brookhaven requires a surety bond bound to the City of Brookhaven for $5,000.00 to be on file before a contractor performs electrical, HVAC or plumbing work inside the city limits. The City lists it alongside two other items that must also be on file, proof of insurance and a State of Mississippi license. The amount is a single flat figure and does not vary by trade or job size. Mississippi itself imposes no bond on residential builders or remodelers, so the $5,000 exists because you are working in Brookhaven.

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

Confirm your trade is covered. The City states the requirement as what must be on file before performing electrical, HVAC and plumbing work inside the city limits.
Get all three items on file before you start work, not at permit time. The bond, proof of insurance, and your State of Mississippi license.
Hold a valid State of Mississippi license. If you do not, check the thresholds, a residential builder licence above $50,000.00 and a remodeler licence above $10,000.00 under Mississippi Code 73-59-1.
Legal business name exactly as it appears on your state licence.
Owner or principal information and authorization for a credit review.
Complete the bond application, review the quoted premium, and pay it.
Have the bond written for $5,000.00 bound to the City of Brookhaven.
Arrange proof of insurance and confirm with the City what it wants named on the certificate.
File all three items with the City's Inspection Department.
For a building permit, prepare two sets of plans, a copy of the deed and a completed building permit application.
Do not start before the permit is issued. Under B104 of Ordinance No. 143-1996 the fees are doubled where work is started or proceeded before the permit is obtained.
On a reconnection job, check the six month rules. A permit is required where the power has been off six months or longer, or where the gas meter has been removed or the gas off six months or longer.
Confirm the bond's renewal cycle with the City, since it is described as a standing filing rather than an annual licence.

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

What the City actually asks for

Brookhaven's Inspection Department frames this as a standing filing rather than a licence application, and the wording tells you when it is due.

The City's Building Permits page answers the question of what information needs to be on file before performing electrical, HVAC and plumbing work inside the city limits with three items. A surety bond bound to the City of Brookhaven for $5,000.00. Proof of insurance. A State of Mississippi license.

Before performing the work. Not at permit time, not at inspection. If you are quoting electrical, mechanical or plumbing work in Brookhaven, the file needs to be complete before you start.

$5,000 flat

One figure. It does not tier by trade, by contract value, by revenue or by how many jobs you run in the city.

An electrical contractor, an HVAC contractor and a plumbing contractor all post the same $5,000.00 bound to the City of Brookhaven.

Your state licence is a prerequisite

The City lists a State of Mississippi license as one of the three items, so the state credential is not optional and not something the bond substitutes for.

If you do not hold one yet, the thresholds are set by the Mississippi State Board of Contractors. A residential builder licence is required where the total cost of the undertaking exceeds $50,000.00. A remodeler licence is required where the total cost of the improvements exceeds $10,000.00. Both come from Mississippi Code 73-59-1.

The definitions matter as much as the figures. A residential builder constructs a building or structure for sale for use by another as a residence, or undertakes construction of structures not more than three floors in height to be used by another as a residence. A remodeler undertakes or offers to undertake the construction, or superintending of the construction, of improvements to an existing residence.

Note the gap. Remodeling crosses into state licensure at $10,000, five times sooner than new residential building at $50,000.

The City points contractors to the State Board of Contractors for licence information and publishes its own list of local licensed contractors.

The state does not require a bond, which is why this one is the City's

The Mississippi residential builder and remodeler statutes and rules require proof of general liability insurance, and workers' compensation where applicable, under Mississippi Code 73-59-3(1) and (2). They carry no bonding requirement.

So the $5,000 is not a state filing collected locally. It is bound to the City of Brookhaven and exists because you are working inside these city limits.

Two reconnection rules worth knowing

These come up constantly on service calls and both carry a six month clock.

On electrical service, if the power has been off for six months or longer a permit must be obtained from the City Inspector. All electrical work performed must be done by a licensed electrician.

On gas, if the meter has been removed or the gas has been off for six months or longer a permit is required. All work performed must be done by a licensed plumber.

A house that has sat empty over a winter is squarely inside both.

The building permit itself

Separate from the bond filing. A building permit takes two sets of plans, a copy of the deed, and a completed building permit application.

A portable storage building needs a permit too, and it has to sit in the side or rear yard. A sign needs a completed and signed sign permit application.

The fee schedule, and the penalty that doubles it

Brookhaven's permit fees come from Ordinance No. 143-1996, adopted June 4, 1996, which amended the schedule in the Standard Building Code the City adopted on May 7, 1996. The ordinance was passed pursuant to Section 21-19-25 of the Mississippi Code Annotated of 1972.

The schedule runs on total valuation. At $1,000.00 and less the fee is $20.00, unless an inspection is required, in which case a $10.00 fee is charged for each inspection. From $1,001.00 to $50,000.00 it is $15.00 for the first $1,000.00 plus $5.00 for each additional thousand or fraction. From $50,001.00 to $100,000.00 it is $260.00 for the first $50,000.00 plus $4.00 per additional thousand or fraction. From $100,001.00 to $500,000.00 it is $460.00 for the first $100,000 plus $3.00 per additional thousand or fraction. At $500,001.00 and up it is $1,660.00 for the first $500,000.00 plus $2.00 per additional thousand or fraction.

Moving a building or structure is $100.00. Demolition is $50.00 up to 100,000 cubic feet, and $0.50 per 1,000 cubic feet at 100,000 cubic feet and over.

The part to plan around is B104. Where work requiring a permit is started or proceeded prior to obtaining the permit, the fees are doubled, and paying the double fee does not relieve anyone from fully complying with the code or from any other penalties. Starting early costs twice and fixes nothing.

What to confirm before you file

Brookhaven's municipal code is published through a system that only renders in a browser, so the specific code section behind the bond is not readable online.

Call the City and confirm three things. Whether your trade falls inside the electrical, HVAC and plumbing requirement. Whether the bond has a renewal cycle or stays on file continuously. And what the City wants named on the insurance certificate.

The City's general enquiry address is brookhaveninfo@brookhaven-ms.gov.

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

A surety bond bound to the City of Brookhaven for $5,000.00.
A flat amount that does not vary by trade, job size or revenue.
Proof of insurance on file with the City.
A State of Mississippi license on file with the City.
All three items on file before performing electrical, HVAC or plumbing work inside the city limits.
The City of Brookhaven as obligee.
Electrical work performed by a licensed electrician and gas work performed by a licensed plumber.
A permit from the City Inspector where electrical power has been off for six months or longer.
A permit where the gas meter has been removed or the gas has been off for six months or longer.
Two sets of plans, a copy of the deed and a completed application for a building permit.
Business name on the bond matching the state licence and the City filing exactly.

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

Which contractors does this apply to?

The City frames it around trade work. Its Building Permits page answers what must be on file before performing electrical, HVAC and plumbing work inside the city limits, and lists a surety bond bound to the City of Brookhaven for $5,000.00, proof of insurance, and a State of Mississippi license. If you are quoting work in those trades in Brookhaven, this is yours.

Does the amount change with the size of my jobs?

No. It is $5,000.00 flat, bound to the City of Brookhaven. It does not scale with contract value, revenue or the number of jobs you run in the city.

When do I need it in place?

Before you perform the work. The City's wording is what needs to be on file before performing the work inside the city limits, so it is a standing filing rather than something you attach to an individual permit application. Get it lodged before you take the job.

Do I need a Mississippi state licence too?

Yes. A State of Mississippi license is one of the three items the City requires on file. The Mississippi State Board of Contractors requires a residential builder licence where the total cost of the undertaking exceeds $50,000.00, and a remodeler licence where the total cost of the improvements exceeds $10,000.00, under Mississippi Code 73-59-1.

Mississippi does not require a contractor bond. Why does Brookhaven?

Because this is a municipal requirement. The Mississippi residential builder and remodeler statutes and rules require general liability insurance, and workers' compensation where applicable, under Mississippi Code 73-59-3(1) and (2), but no bond. The $5,000 is bound to the City of Brookhaven and exists because you are working inside these city limits.

I am reconnecting power to a vacant house. Do I need a permit?

If the power has been off for six months or longer, yes. A permit must be obtained from the City Inspector, and all electrical work performed must be done by a licensed electrician. The gas rule works the same way. If the meter has been removed or the gas has been off six months or longer, a permit is required and the work must be done by a licensed plumber.

What do I need for a building permit?

Two sets of plans, a copy of the deed, and a completed building permit application. A portable storage building also needs a permit and must be located in the side or rear yard. A sign needs a completed and signed sign permit application.

What do permits cost?

They run on total valuation under Ordinance No. 143-1996. At $1,000.00 and less the fee is $20.00, or $10.00 for each inspection where an inspection is required. From $1,001.00 to $50,000.00 it is $15.00 for the first $1,000.00 plus $5.00 per additional thousand or fraction. From $50,001.00 to $100,000.00 it is $260.00 plus $4.00 per additional thousand. From $100,001.00 to $500,000.00 it is $460.00 plus $3.00 per additional thousand. At $500,001.00 and up it is $1,660.00 plus $2.00 per additional thousand. Moving a building is $100.00 and demolition is $50.00 up to 100,000 cubic feet, then $0.50 per 1,000 cubic feet.

What happens if I start work before the permit is issued?

The fee doubles. Section B104 of Ordinance No. 143-1996 provides that where work requiring a permit is started or proceeded prior to obtaining the permit, the fees are doubled, and paying the double fee does not relieve anyone from fully complying with the code or from any other penalties. It costs twice and cures nothing.

How old is the fee ordinance?

Ordinance No. 143-1996 was passed, approved and adopted on June 4, 1996, amending the permit fee schedule in the Standard Building Code that Brookhaven adopted on May 7, 1996. It was passed pursuant to Section 21-19-25 of the Mississippi Code Annotated of 1972. Because the schedule dates from 1996, confirm the current figures with the City before budgeting a large job.

What does the bond cost?

You pay an annual premium rather than the $5,000. At this size the rate is driven mainly by the owner's personal credit, and a $5,000 municipal contractor bond is a small exposure written routinely. Rates vary enough between applicants that publishing a percentage would mislead rather than help. Get your actual number, it takes a couple of minutes.