HVAC Contractor ($25,000) Bond - City of Parma, OH in Ohio

Brief Summary

Parma will not register a warm air heating or HVAC contractor until a $25,000 bond is on file with the Building Commissioner, and a state HVAC license does not change that. The amount is flat with no tiers, the registration runs by calendar year, and the bond goes on the city's own surety bond form. Getting that form executed correctly the first time keeps the registration moving.

Parma Codified Ordinance 1541.10 requires every applicant for registration as a warm air heating contractor to file a $25,000 bond with the Building Commissioner once the application is approved. The bond guarantees full and faithful compliance with the city's regulations, is approved as to form by the Solicitor and as to sufficiency by the Auditor, and is written on the City of Parma surety bond form with the City of Parma as obligee.

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How to Apply for a HVAC Contractor ($25,000) Bond:

• Apply for registration as a warm air heating contractor with the Parma Building Commissioner on the city's form.
• If you hold an Ohio specialty contractor license under Chapter 4740, bring proof of it. Parma cannot make you retest, but it can require registration, the fee and the bond.
• Once the application is approved, have the $25,000 bond executed on the City of Parma surety bond form.
• Attach the surety agent's power of attorney to the bond.
• File the bond with the Building Commissioner and pay the registration fee set in Chapter 185.
• Renew the registration and keep a bond in place for each calendar year you work in Parma.

Detailed Information About the Ohio HVAC Contractor ($25,000) Bond:

A state license does not replace the Parma bond

Many HVAC contractors assume their Ohio Construction Industry Licensing Board license is all they need. In Parma it is not. Ohio Revised Code 715.27(C) allows a city to require a contractor who holds a state HVAC license to register with the city, pay the city's fee and obtain a bond before working there. What the city cannot do, under division (B) of the same section, is make a state licensed contractor take another exam.

What Parma requires

Chapter 1541 of the Parma Codified Ordinances covers warm air heating, air conditioning and mechanical system work. Section 1541.08 says this work may only be done by someone registered with the Building Commissioner, and a firm needs at least one authorized member registered for each branch office or location. Section 1541.10 then requires every applicant, once the application is approved, to furnish a bond in the penal sum of $25,000. The amount is flat. There are no tiers by revenue, payroll or job size.

What the bond covers

The ordinance says the bond guarantees full and faithful compliance with the city's regulations. The city's surety bond form adds that the principal must save harmless the City of Parma, its agents and officials from damages sustained on account of work performed, and that the city, any injured party, or both may bring an action on the bond. Any claim the surety pays is owed back by the contractor, which is the main difference between a bond and insurance.

Form, term and filing

Parma uses one surety bond form for HVAC, electrical, plumbing, fire protection, specialty and general contractor registrations, among others. If an agent signs for the surety, the agent's power of attorney must be attached, and a corporation formed outside Ohio must show proof that it is authorized to do business in Ohio. Section 1541.11 issues the certificate of registration for the current calendar year, so the bond should be written for that year. The registration fee is set in Chapter 185 of the Codified Ordinances. Confirm the current fee with the Parma Building Department before filing.

Eligibility and Requirements for a Ohio HVAC Contractor ($25,000) Bond:

• Bond amount of $25,000, the penal sum fixed by Parma Codified Ordinance 1541.10.
• City of Parma named as obligee on the city's surety bond form.
• Bond approved as to form by the Solicitor and as to sufficiency by the Auditor.
• At least one authorized member of the firm registered for each branch office or location.
• Proof of authority to do business in Ohio for a corporation formed outside the state.
• Ohio law also lets the city ask for proof of insurance, workers' compensation compliance and registration with the city tax department, so have those ready.

Ohio HVAC Contractor ($25,000) Bond FAQs:

Official and Additional Resources for the Ohio HVAC Contractor ($25,000) Bond: