Contractor's Permit ($10,000) Bond - City of Elizabethton, TN in Tennessee

Brief Summary

If you are hired to build, remodel or run trade work inside Elizabethton city limits, the city expects you to be certified, licensed and insured before a permit is issued, and the $10,000 contractor's permit bond is part of that file. You pay a yearly premium instead of tying up $10,000, and the bond can usually be issued the same day.

The City of Elizabethton, Tennessee requires a $10,000 contractor's permit bond from contractors who pull permits for work inside the city limits. The city is the obligee. The bond guarantees that the contractor will follow the city's adopted codes and permit rules and will cover losses caused by work that breaks them. Confirm the current bond form and filing steps with the Elizabethton Building and Codes Enforcement office before the bond is issued.

We can help with all Tennessee bonds!

How to Apply for a Contractor's Permit ($10,000) Bond:

• Have your legal business name exactly as it will appear on your Elizabethton permit applications.
• Owner name, home address and Social Security number for the credit review.
• Complete the bond application and review the premium quote.
• Pay the premium and receive the signed $10,000 bond naming the City of Elizabethton as obligee.
• File the bond with Elizabethton Building and Codes Enforcement along with proof of your licensing and insurance.
• Apply for permits and schedule inspections through the city's SmartGov online portal.

Detailed Information About the Tennessee Contractor's Permit ($10,000) Bond:

Who needs a permit, and who posts the bond

Elizabethton requires a permit from any owner, authorized agent or contractor who wants to construct, enlarge, alter, repair, move or demolish a structure, or install, repair, remove or replace any electrical, gas, mechanical or plumbing system, sewer line or water line. The city states that any contractor engaged in those trades must be certified, licensed and insured to work within the corporate limits, and that a Tennessee state contractor's license may also be needed. The contractor pulling the permit is the one who posts the $10,000 bond, with the City of Elizabethton as obligee.

The homeowner exception is narrow

A homeowner can pull a permit for their own house under Tennessee Code Annotated 62-6-103, but the city's homeowner affidavit limits it to one single residence every two years for the owner's own use. The owner has to do the work, other than licensed subcontractors, and cannot hire a construction manager. Anyone the homeowner hires is treated as a prime contractor or construction manager and is not exempt from the license requirements. The city specifically warns about unlicensed contractors who ask the homeowner to pull the permit to get around the licensing law. If you are being paid to do the work, the permit and the bond are yours.

Gas work is stricter still. No gas work may be performed inside the city limits except by a certified, licensed gas installer, even on a homeowner job.

What the bond guarantees

The bond backs your promise to perform permitted work to the codes the city has adopted, which include the 2018 International Building, Residential, Existing Building, Plumbing, Mechanical, Fuel Gas and Energy Conservation codes and the 2017 National Electrical Code. If the city or a property owner suffers a loss because the work did not meet code or permit requirements, a claim can be made up to $10,000. You repay the surety for any claim it pays.

How the premium is set

You do not pay the $10,000. The surety quotes a yearly premium based on the owner's personal credit and the business history, and stronger credit earns a lower rate.

Eligibility and Requirements for a Tennessee Contractor's Permit ($10,000) Bond:

• Bond amount of $10,000.
• City of Elizabethton, Tennessee named as obligee.
• Contractor certified, licensed and insured to work within the city limits.
• A Tennessee state contractor's license where state law requires one.
• Gas work performed only by a certified, licensed gas installer.

Tennessee Contractor's Permit ($10,000) Bond FAQs:

Official and Additional Resources for the Tennessee Contractor's Permit ($10,000) Bond: