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

Brief Summary

In Madison, $5,000 is the minimum for a builder's bond, not always the final number. The city's rule is $5,000 or .5%, whichever is greater, so check the amount against your job before the bond is written. Once it is right, the bond costs a premium rather than cash tied up with the city and goes straight into your permit file.

The City of Madison, Mississippi requires the builder or contractor applying for a residential building permit to be bonded with the city for $5,000 or .5%, whichever is greater. The builder must also hold a Mississippi license when state law requires one. The state license and the city bond are listed as separate requirements, and one does not replace the other.

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

• Confirm the bond amount with the Building & Permits Department: $5,000 or .5%, whichever is greater.
• Your cost of construction figure, not including the lot, as reported on the permit application.
• Mississippi State Board of Contractors license details if state law requires a license for the job.
• Owner contact details and consent for a credit review by the surety.
• Payment of the premium and delivery of the signed original bond to the City of Madison.

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

$5,000 is the floor

Madison's Obtaining a Permit page states that the builder or contractor applying for a residential building permit shall be bonded with Madison the City for $5,000 or .5%, whichever is greater. On most jobs that means $5,000. On a large enough job the percentage controls and the bond has to be written for more. The same permit application asks for the cost of construction, not including the lot. Ask the Building & Permits Department how the .5% is figured for your project so the bond is issued in the right amount the first time.

The state license is a separate item

The city also requires the builder to be licensed with the State of Mississippi when state law requires it. The Mississippi State Board of Contractors states that a license is required for new residential construction over $50,000, residential remodeling or additions over $10,000, and commercial work over $50,000. Holding that license does not excuse the city bond.

What else the city asks for at permit time

Two sets of plans covering elevations, foundation, plot plan, floor plan, electrical layout and HVAC, homeowners association approval where the covenants require it, and licensed electrical, plumbing and HVAC subcontractors who give the city a copy of their Master's License. You also report the bedrooms, bathrooms, heated square footage and cost of construction. All fees are due when the permit is issued. A $200.00 re-inspection fee and a $500.00 fee to lift a Stop Work Order also appear on the page.

Filing

The obligee is the City of Madison. Contact the Building & Permits Department at (601) 856-6336 or permits@madisonthecity.com to confirm the current bond form before the bond is issued.

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

• Bond payable to the City of Madison, Mississippi, in the greater of $5,000 or .5%.
• A surety company authorized to write bonds in Mississippi.
• A Mississippi contractor license when state law requires one.
• Licensed electrical, plumbing and HVAC subcontractors with copies of their Master's Licenses on file with the city.
• Two sets of plans and payment of all permit fees when the permit is issued.

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

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