Surety Bond Encyclopedia

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

Brief Summary

Ridgeland takes this bond on its own form only, so a generic contractor bond from another city will be sent back. Get the city form executed correctly the first time and the bond becomes a routine renewal each year. The premium is paid to the surety, and the city keeps the $5,000 protection without holding your cash.

Under Ridgeland Code Sec. 18-88, anyone engaging in mechanical, plumbing, electrical, general contracting, swimming pool, remodeling, foundation repair or any other contracting job over $100.00 must post a $5,000 bond payable to the City of Ridgeland. The bond runs for one year and must be renewed each year. It must be on the city's own form, and a State Certificate of Responsibility does not replace it.

We can help with all Mississippi bonds!

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

Completed and signed contractor license application from the City of Ridgeland packet.
Photo ID presented in person.
Photocopy of a current State Certificate of Responsibility from the Mississippi State Board of Contractors, if applicable.
Original $5,000 license bond on the City of Ridgeland form, with power of attorney and corporate seal.
Subcontractors: a copy of a current license held in a Mississippi municipality, a letter showing it has been held at least one year in good standing, and a general liability certificate.
Subcontractors: $25.00 application fee per license issued, waived for a current State Certificate of Responsibility holder.

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

A state license does not replace the city bond

Ridgeland's licensing packets list the State Certificate of Responsibility from the Mississippi State Board of Contractors and the $5,000 license bond as separate items. The certificate earns a break on the $25.00 subcontractor application fee, which is waived for a current certificate holder. It does nothing to the bond. Ridgeland Code Sec. 18-88 requires the bond from anyone engaging in mechanical, plumbing, electrical, general contracting, swimming pools, remodeling, foundation repair or any other contracting job in excess of $100.00.

City form only

Both the general contractor and subcontractor packets say the bond must come from the insurance company on the city's form only. The form binds the principal and a surety authorized to do business in Mississippi to the City of Ridgeland, Mississippi, a municipal corporation, in the penal sum of $5,000.00. The original signed bond is filed with the Building Permit Division, with the surety's power of attorney and corporate seal attached. The packet also calls for signatures by a resident Mississippi agent and an attorney in fact.

What the bond covers

Sec. 18-88(c) conditions the bond to protect the city against loss caused by the principal's acts or negligence, or by failing to properly do and protect the work, and requires the principal to observe all city ordinances. The city form adds $100.00 in liquidated damages for each violation, after five days' notice and a chance to correct it. The building official must approve the bond before it takes effect.

Term, renewal and cancellation

The bond runs one year and is renewed each year. No permit is issued unless the bond is in force when you apply. The city form requires thirty days' written notice to the city before cancellation or nonrenewal.

Who is exempt

Sec. 18-89 lets a homeowner do electrical, gas, mechanical or plumbing work on a residence he owns and occupies without the contractor bond, as long as the work meets the rest of the code.

Contact

Community Development Department, 100 West School Street, P.O. Box 217, Ridgeland, MS 39158, 601.856.3877.

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

Bond amount of $5,000.00 payable to the City of Ridgeland, Mississippi, a municipal corporation.
An approved surety company authorized to do business in Mississippi.
Bond on the city's own form only.
One year bond term, renewed each year, with thirty days' written notice to the city before cancellation or nonrenewal.
Approval of the bond by the building official before it takes effect.
General liability insurance for subcontractors, with the subcontractor packet listing a minimum of $300,000 each occurrence.

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

I hold a State Certificate of Responsibility. Am I exempt from the bond?

No. The certificate waives the $25.00 subcontractor application fee, and only for the individual who passed the state exam. The $5,000 bond under Ridgeland Code Sec. 18-88 is still required.

Is the bond required on small jobs?

The threshold is low. Sec. 18-88 applies to any contracting job in excess of $100.00, along with mechanical, plumbing, electrical, general contracting, swimming pool, remodeling and foundation repair work.

Can I use a standard contractor bond form?

No. Ridgeland's packets say the bond must be on the city's form only. The original signed bond goes to the Building Permit Division with the surety's power of attorney and corporate seal.

Who does not need the bond?

Under Sec. 18-89, a homeowner doing his own electrical, gas, mechanical or plumbing work on a residence he owns and occupies, provided the work complies with the rest of the code.

How long does the bond last?

One year. Sec. 18-88(b) requires renewal each year, and no permit is issued unless the bond is in force when you apply. The city form requires thirty days' written notice to the city before cancellation or nonrenewal.

How is the premium set?

The surety prices it from the $5,000 bond amount and your application, mainly the owner's credit and business history. You pay the premium to the surety each term rather than depositing $5,000 with the city.