Surety Bond Encyclopedia

Air Conditioning Contractor ($5,000) Bond - Madison, MS in Mississippi

Brief Summary

An HVAC contractor working in Madison usually has two separate things to show the city: proof of Mississippi licensing with a copy of the Master's License, and a $5,000 bond payable to the City of Madison. The license does not stand in for the bond. The bond is a one time purchase for the term, priced on your own application, and the executed form goes straight to the Building & Permits Department.

The City of Madison, Mississippi lists a $5,000 surety bond for air conditioning contractors. The city's own permit page requires HVAC subcontractors to be licensed in Mississippi and to give the city a valid copy of their Master's License, and the Mississippi State Board of Contractors requires residential HVAC subcontractors to hold a state license. Those are credentials. The bond is a separate financial guarantee filed with the City of Madison.

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

  • Legal business name and owner name exactly as they will appear on the city filing.
  • Mississippi license information, including a copy of the Master's License the city asks HVAC subcontractors to provide.
  • Owner contact details and consent for a credit review by the surety.
  • Confirmation from the Madison Building & Permits Department of the current bond form and where to file it.
  • Payment of the bond premium, then delivery of the signed original bond to the city.

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

The license and the bond are two different items

Madison's Building & Permits Department publishes the requirements for a residential building permit on its Obtaining a Permit page. For the trades it is direct: subcontractors doing electrical, plumbing and HVAC work must be licensed in Mississippi and must provide Madison the City with a valid copy of their Master's License. The Mississippi State Board of Contractors adds that subcontractors performing residential electrical, mechanical, HVAC or plumbing work on a residential construction or improvement project must be licensed by the Board.

None of that replaces the $5,000 Air Conditioning Contractor bond. The license shows you are qualified. The bond is a promise backed by a surety company that you will follow the city's ordinances and permit conditions, and that a valid claim by the city will be paid.

Do not confuse it with the builder's bond

The same city page sets a different rule for the builder or contractor applying for a residential building permit: that bond is $5,000 or .5%, whichever is greater. If your company also pulls building permits as the builder, ask the department which bond and which amount apply to you.

Filing in Madison

The obligee is the City of Madison, which brands itself Madison the City. Call the Building & Permits Department at (601) 856-6336 or email permits@madisonthecity.com to confirm the current bond form and filing steps before the bond is issued. The city's permit application carries its own Mechanical/HVAC permit fee line, and all fees are due when the permit is issued.

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

  • Bond amount of $5,000 payable to the City of Madison, Mississippi.
  • A surety company authorized to write bonds in Mississippi.
  • State licensing through the Mississippi State Board of Contractors for residential HVAC subcontract work.
  • Compliance with the adopted building, plumbing, gas, mechanical and national electric codes, as the city requires of all construction.
  • Permit fees paid at the time the permit is issued.

Mississippi Air Conditioning Contractor ($5,000) Bond FAQs:

I already hold a Mississippi HVAC license. Do I still need the bond?

Yes, if Madison requires the bond for your work. The city asks HVAC subcontractors for proof of Mississippi licensing and a copy of the Master's License as a separate item. A state license is a qualification. The $5,000 bond is a financial guarantee to the city, and one does not substitute for the other.

Is this the same as the $5,000 or .5% bond on the city's permit page?

No. That rule applies to the builder or contractor applying for a residential building permit, and it can rise above $5,000 on larger jobs. The Air Conditioning Contractor bond is listed at a flat $5,000. If you act as the builder as well, ask the Building & Permits Department which bond applies.

Who is the obligee?

The City of Madison, Mississippi. The city uses the name Madison the City on its website and permit forms. Confirm the exact obligee wording and the current form with the Building & Permits Department at (601) 856-6336 before the bond is issued.

How is the premium set?

The surety prices the bond from the $5,000 bond amount and your application, mainly the owner's credit and business history. You pay the premium to the surety for the bond term. You do not deposit $5,000 with the city.

What happens if the city makes a claim?

The surety reviews it. If the claim is valid, the surety pays the city up to $5,000 and then looks to you to repay it. The bond protects the city, not the contractor.

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

Other Madison, MS Surety Bonds in Mississippi

Electrical Contractor ($5,000)Gas Fitting Contractor ($5,000)General Contractor ($5,000)House Moving Contractor ($5,000)Plumbing Contractor ($5,000)

All Mississippi Contractor bonds · All Madison, MS bonds · All Mississippi surety bonds