General Contractor ($5,000) Bond - Cleveland, MS in Mississippi

Brief Summary

This $5,000 bond gives the City of Cleveland, Mississippi a financial guarantee behind a general contractor working in the city. It is a small bond. You pay a premium set by the surety instead of tying up $5,000 in cash, and the executed bond goes to the city's Department of Community Development.

General contractors in Cleveland, Mississippi post this $5,000 surety bond with the City of Cleveland. Contractor licensing, permits and inspections are handled by the city's Department of Community Development at 207 E Carpenter Street. Confirm the current bond form and filing steps with that office before the bond is issued. Residential work above the state thresholds also needs a Mississippi State Board of Contractors license, and the city bond does not stand in for it.

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

• Contact the Department of Community Development at 662-843-4601 and confirm the current bond form and filing steps.
• Have your legal business name exactly as it appears on your city contractor 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.
• Deliver the executed $5,000 bond to Community Development at 207 E Carpenter Street.
• Keep the bond in force for as long as you hold the city license.

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

The city bond and the state license are separate

A Cleveland bond does not license you with the state, and a state license does not satisfy the city's bond. Mississippi Code 73-59-1 requires a residential builder license when the total cost of building a residence of not more than three floors exceeds $50,000, and a remodeler license when improvements to an existing residence exceed $10,000. Under Section 73-59-17, the building official of any municipality must refuse a permit for that work unless the applicant shows that it is licensed or exempt. The $5,000 bond on this page is a separate requirement owed to the City of Cleveland.

Who handles it in Cleveland

The Department of Community Development is responsible for permits, inspections, code enforcement and contractor licensing. The city's own page puts it plainly: almost any work done requires a permit from the Department of Community Development before the work begins. The city enforces the 2021 International Building, Residential, Existing Building, Fire, Fuel Gas, Mechanical, Plumbing and Property Maintenance Codes and the 2020 National Electric Code.

The office is at 207 E Carpenter Street, Cleveland, MS 38732, phone 662-843-4601, open Monday through Friday from 8:00 AM to 5:00 PM.

What the bond guarantees

The bond names the City of Cleveland as obligee and guarantees that the contractor will follow the city ordinances and building codes that apply to its work. If the contractor breaks them and a valid claim is made, the surety pays up to the $5,000 bond amount and then recovers that money from the contractor. The bond protects the city and the public. It is not insurance for the contractor.

Before the bond is issued

Ask Community Development for its current bond form, the exact obligee wording it wants, and whether the bond is filed with your contractor license application or with a permit. Have the bond written in the same legal business name you use with the city.

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

• City of Cleveland, Mississippi named as obligee.
• Bond amount of $5,000.
• Business name on the bond matching the city license application.
• A Mississippi State Board of Contractors license for residential work over $50,000, or remodeling over $10,000.
• Owner credit review by the surety.

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

Official and Additional Resources for the Mississippi General Contractor ($5,000) Bond: