Electrical: Commercial, Industrial, Institutional ($25,000) Bond - City of Willoughby, OH in Ohio

Brief Summary

Willoughby will not issue an electrical permit for contract work until your company holds a city contractor registration, and the registration will not issue until a $25,000 bond is on file with the Chief Building Inspector. You pay an annual premium instead of tying up $25,000, and the bond is written on the city's own Contractor's Bond form so it is accepted on the first submission.

The City of Willoughby requires every registered contractor, including electrical contractors doing commercial work, to file a $25,000 surety bond before registration is issued under Codified Ordinance 1327.06. The amount is flat. It has nothing to do with the size of any project. The surety must be authorized in Ohio and listed on U.S. Treasury Circular 570, and the registration expires every December 31.

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How to Apply for a Electrical: Commercial, Industrial, Institutional ($25,000) Bond:

• Hold a current Ohio electrical contractor license or OCIEB certificate of qualification before applying.
• Complete the city's Certificate of Contractor Registration Application and select the electrical category.
• Have the city's Contractor's Bond form executed for $25,000 by an Ohio authorized surety listed on Treasury Circular 570.
• Attach the surety's Power of Attorney to the bond.
• Provide a certificate of liability insurance for $1,000,000 per occurrence naming the City of Willoughby as certificate holder.
• Submit registrations from other municipalities covering two separate years, or seek Board of Building Code Appeals approval.
• Pay the $100 registration fee once the application is accepted.
• Renew within the 30 days before the December 31 expiration.

Detailed Information About the Ohio Electrical: Commercial, Industrial, Institutional ($25,000) Bond:

What this bond actually is

This is a contractor registration bond, not a project bond. Some listings describe it as a bond for electrical projects valued at $25,000. That is wrong. Willoughby Codified Ordinance 1327.06 requires the contractor or registrant to file a bond in the sum of $25,000 with the Chief Building Inspector before registration is issued. The figure is the same for every contractor category the city registers, whether general, electrical, plumbing, HVAC or fire protection. There are no tiers.

The bond guarantees full compliance with the applicable Building Code and its rules, and that all work done under a city permit follows state statutes, administrative codes and local rules. The city's Contractor's Bond form names the City of Willoughby, or any of its officers, for the use of any person, firm or corporation, and runs for the calendar year.

Commercial, industrial and institutional is one category

The code does not use the words industrial or institutional. Section 1327.01 lists three electrical registration classes: owner or limited premises, commercial construction and residential construction. Commercial construction means work regulated by Chapters 1303, 1305 and 1307 of the Building Code, which covers everything outside detached one, two and three family dwellings. Factories, schools, churches and offices all fall under commercial.

The state license comes first

Section 1327.01(b) requires electrical contractors who do commercial construction to be licensed or hold a certificate of qualification from the Ohio Construction Industry Examining Board before the city will register them. Ohio Revised Code 715.27(C) allows a municipality to require a state licensed electrical contractor to register, pay a fee and post a bond, but it bars the city from making that contractor sit for another exam.

Surety requirements

The bond must be written by an approved surety company authorized to transact business in Ohio and listed on the current Treasury Circular 570, Surety Companies Acceptable on Federal Bonds. The Power of Attorney must be attached, and a surety from outside Ohio must attach its authority to do business in the state.

Other registration requirements

Section 1327.02 requires the applicant to be at least 18, of good moral character, able to read and write English, and to have at least two years in the trade, backed by a chronological list of projects and contact names. The city's registration packet asks for registrations from other municipalities covering at least two separate years. Without them, the Willoughby Board of Building Code Appeals must approve the registration. Section 1327.07 requires liability insurance of $1,000,000 per occurrence, with the city as certificate holder. The registration fee under 1327.08 is $100.

Who is exempt

No grandfather clause appears in Chapter 1327. The exemptions are narrow. A homeowner may work on an existing one or two family dwelling that is the homeowner's permanent residence after filing an affidavit, but anyone paid to do that work must be registered. Public utility employees working on utility equipment are also exempt under 1327.04. Neither applies to a commercial electrical contractor.

Expiration and renewal

Every registration expires December 31 of the year it was issued and must be renewed within the 30 days before it expires. Miss that window and Section 1327.09 treats you as a new applicant, who must again meet every eligibility requirement in 1327.02.

How premium is set

The surety prices the bond on the owner's personal credit, time in business and claim history. You pay the premium once for the term and the full $25,000 is never deposited with the city.

Eligibility and Requirements for a Ohio Electrical: Commercial, Industrial, Institutional ($25,000) Bond:

• Bond amount of exactly $25,000, the same for every contractor category.
• City of Willoughby named as obligee on the city's Contractor's Bond form.
• Surety authorized to transact business in Ohio and listed on the current U.S. Treasury Circular 570.
• Principal's address, Social Security number and Federal ID number on the bond form.
• Applicant at least 18 with a minimum of two years in the trade.
• At least one responsible member, officer or employee of the firm registered with the city.
• Owner credit review by the surety, which shapes the premium.

Ohio Electrical: Commercial, Industrial, Institutional ($25,000) Bond FAQs:

Official and Additional Resources for the Ohio Electrical: Commercial, Industrial, Institutional ($25,000) Bond: