Surety Bond Encyclopedia

General Building Trades ($20,000) Bond - City of South Euclid, OH in Ohio

Brief Summary

An Ohio Construction Industry Licensing Board license does not get you out of this bond. South Euclid asks every contractor and subcontractor for a $20,000 compliance bond before it issues a Certificate of Contractor Registration, and Ohio law lets the city ask state licensed trades for it too. You pay a premium instead of tying up $20,000 in cash, and the signed bond goes in with the rest of your registration packet.

Section 1307.04 of the South Euclid Codified Ordinances requires a $20,000 bond to insure full and faithful compliance with all ordinances, rules and regulations of the City of South Euclid from every contractor seeking a Certificate of Contractor Registration. The city treats anyone doing work regulated by its Building Code or Zoning Code, or any work in the public right of way, as a contractor. Registration costs $100, or $200 if work started before the certificate was issued.

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How to Apply for a General Building Trades ($20,000) Bond:

Legal business name and address exactly as they will appear on the South Euclid registration application.
Owner name and home address for the surety's credit review.
Your Ohio Construction Industry Licensing Board license number if you work in a licensed trade.
Complete the bond application and review the quoted premium.
Pay the premium and receive the signed $20,000 bond.
File the bond with the South Euclid Building Department along with insurance certificates and the $100 registration fee.

Detailed Information About the Ohio General Building Trades ($20,000) Bond:

One figure for every trade

The amount does not change with your trade, license type or job size. Section 1307.04 sets a single bond of $20,000 for any contractor or subcontractor registering with the city. This page covers the bond as posted by general building trades contractors, but the figure is the same across the board.

A state license does not replace it

Plumbers, electricians and HVAC contractors with an Ohio Construction Industry Licensing Board license often assume the state license covers them. It does not. Ohio Revised Code 715.27(C) allows a city to require a specialty contractor who holds a Chapter 4740 license to register, pay a fee and obtain a bond. Once those items are in, the city has to let the contractor start work right away. South Euclid also asks those trades to attach the state license itself to the application.

Who has to register

Section 1307.02 bars any contractor from working in the city without a current Certificate of Contractor Registration from the Building Commissioner. Section 1307.01 defines a contractor as any person or entity doing work regulated by the Building Code or Zoning Code, or doing any work within the public right of way.

The one exception in Section 1307.03 is an owner of a single, two family or three family dwelling doing the work personally on the home where the owner lives. That owner must file an affidavit with the Building Commissioner describing the work.

What goes in with the bond

Any state license the trade requires, such as an OCILB license for plumbing, electrical or HVAC work, or an Ohio Department of Health license for asbestos, lead or radon work
Proof of bodily injury coverage of $1,000,000/$2,000,000 and property damage coverage of at least $500,000, or general liability of $1,000,000 per occurrence and $2,000,000 aggregate
Subcontractor utilization reports
Registration with the Regional Income Tax Administrator before work begins

Fees and enforcement

Section 1307.05 sets the registration fee at $100, or $200 if work began before the certificate was issued. If the Building Commissioner finds an incomplete application, false information or an ordinance violation, the contractor gets written notice and a period to fix it. Failing to fix it leads to a stop order and revocation.

How the premium is set

The surety prices the bond after reviewing the owner's credit and the business history. You see the quote before you buy. The city publishes its current contractor registration packet on the Building Department page, so confirm the bond form there before the bond is issued.

Eligibility and Requirements for a Ohio General Building Trades ($20,000) Bond:

Bond amount of $20,000 under Section 1307.04, the same for every contractor.
Bond conditioned on full and faithful compliance with all ordinances, rules and regulations of the City of South Euclid.
Liability insurance at the Section 1307.04 minimums.
Registration with the Regional Income Tax Administrator before work starts.
Any state license the trade requires, attached to the application.

Ohio General Building Trades ($20,000) Bond FAQs:

I hold an OCILB license. Do I still need this bond?

Yes. Ohio Revised Code 715.27(C) lets a city require a bond from a contractor who holds a state license under Chapter 4740, and South Euclid's Section 1307.04 applies the $20,000 bond to any contractor or subcontractor.

Does the bond amount change by trade or job size?

No. Section 1307.04 sets one figure of $20,000. There are no tiers by trade, license class or contract value.

I am a homeowner doing my own work. Do I need to register?

Not if you own a single, two family or three family dwelling, live there, and do the work yourself. Section 1307.03 requires you to file an affidavit with the Building Commissioner describing the work instead.

What does registration cost?

Section 1307.05 sets the fee at $100 per registration. It rises to $200 if work began before the certificate was issued.

How much will the bond cost me?

The surety sets the premium after reviewing the owner's credit and the business history. Stronger credit generally means a lower price, and you see the quote before you pay.