Surety Bond Encyclopedia

Contractor's License ($15,000) Bond - City of Grove City, OH in Ohio

Brief Summary

Grove City makes state licensed HVAC, refrigeration, plumbing, electrical and hydronics contractors post the same $15,000 bond as home improvement contractors before the Building Division will register them. One bond covers every registration you hold with the city, so you buy it once, keep it in force, and carry it through each annual renewal.

Grove City Codified Ordinances 1375.06 and 1377.04 require a bond of not less than $15,000 before the Building Division issues or renews a home improvement general or limited contractor registration, a sewer contractor registration, or an OCILB licensed specialty contractor registration. The bond runs to the Building Division on its prescribed form, must be signed by the individual named on the registration, and has to stay in good standing for as long as the registration does.

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How to Apply for a Contractor's License ($15,000) Bond:

Identify the registration you hold or are applying for: home improvement general or limited, sewer, or OCILB licensed specialty contractor.
Get the bond form prescribed by the Grove City Building Division.
Have the bond written in the name of the individual named on the registration. That person signs it.
Complete the surety application and review the quoted premium.
File the executed bond with the Building Division before the registration is issued or renewed.
Keep the bond in force for the full registration term and carry it into each renewal.

Detailed Information About the Ohio Contractor's License ($15,000) Bond:

A state license does not replace this bond

Contractors licensed by the Ohio Construction Industry Licensing Board often assume the state license is all a city can ask for. Grove City's code says otherwise. Section 1371.05 requires electrical, plumbing, heating, ventilating and air conditioning, refrigeration and hydronics contractors to register with the Building Division before working in the city, and Section 1377.04 requires a bond of not less than $15,000 before that registration is issued or renewed.

Ohio law allows this. Ohio Revised Code 715.27(C) lets a municipal corporation require a state licensed contractor to register, pay its fee, and provide a bond along with proof of insurance, workers' compensation compliance and tax registration. What a city cannot do under 715.27(B) is make a licensed contractor complete an examination, test or demonstration of technical skills.

Who else posts it

Section 1375.06 applies the same $15,000 minimum to home improvement general contractors, home improvement limited contractors (Section 1371.04 lists fields such as fireplaces and stoves, and exterior work like siding, windows, canopies and awnings), and sewer contractors.

One bond covers every registration

If the same individual holds more than one registration with the Building Division, a single $15,000 bond is sufficient for all of them. The individual named on the registration signs the bond. For home improvement and sewer registrations, Section 1375.06(f) says that applies regardless of any assignment to a business concern.

What the bond pays for

The bond reimburses any person for damages caused by the registrant, or the registrant's agents or employees, acting contrary to the Grove City Building Code, including the Ohio Basic Building Code and the city's adopted One, Two and Three Family Dwelling Code, any other city code or ordinance, or failing to perform a duty those codes require. Claims go directly to the surety. Neither the city nor a Contractor Board of Review may collect from the surety on behalf of a private party.

Term, renewal and lapse

Home improvement and sewer registrations are valid for one year from the date of issue (Section 1375.11). Both those and OCILB specialty registrations can be renewed during the 90 calendar days before they expire. A home improvement or sewer registration not renewed within 30 calendar days after expiration has to go before the Contractor Board of Review for reinstatement. Failing to keep the bond in good standing is cause for immediate suspension, and a contractor with an expired registration cannot do covered work or receive permits. Registration fees are set by the city's Fee Schedule under Section 1375.09.

Eligibility and Requirements for a Ohio Contractor's License ($15,000) Bond:

Bond amount of not less than $15,000.
Grove City Building Division named as obligee, on the form the Building Division prescribes.
A surety approved by the Building Division.
One $15,000 bond covers all registrations held by the same individual.
Separate insurance and city income tax registration requirements under Sections 1375.07, 1375.08, 1377.05 and 1377.06.

Ohio Contractor's License ($15,000) Bond FAQs:

I hold an OCILB license. Do I still need the Grove City bond?

Yes. Section 1377.04 requires a bond of not less than $15,000 before the Building Division issues or renews an OCILB licensed specialty contractor registration. Ohio Revised Code 715.27(C) allows a city to require a bond from state licensed contractors.

I have more than one registration with the city. Do I need a bond for each?

No. When the same individual holds more than one Building Division registration, one $15,000 bond is sufficient for all of them.

Who can make a claim on the bond?

Any person damaged by the registrant, or the registrant's agents or employees, acting contrary to the city's building codes or ordinances, or failing to perform a duty they require. The claim is made directly to the surety. The city does not collect on a private party's behalf.

What happens if the bond lapses?

Failure to keep the bond in good standing is cause for immediate suspension of the registration. With an expired registration you cannot do covered work in Grove City, and the Building Division will not issue you permits.

When do I renew?

Registrations can be renewed during the 90 calendar days before they expire, and the bond requirement has to be met at every renewal. Home improvement and sewer registrations are valid for one year from the date of issue.