Mechanical Contractor ($25,000) Bond - Memphis and Shelby County, TN in Tennessee

Brief Summary

The $25,000 bond is part of the file a mechanical company needs before it can pull its own mechanical permits in Memphis and Shelby County. You pay a yearly premium instead of tying up $25,000 in cash, most applicants are quoted the same day, and the executed bond goes straight to Memphis and Shelby County Construction Code Enforcement.

Mechanical contractors working under the Joint Technical Codes of Memphis and Shelby County post a $25,000 surety bond with Memphis and Shelby County Construction Code Enforcement. Code Enforcement requires mechanical permits to be pulled by a licensed mechanical company registered with its office, so the bond has to be on file before the first mechanical permit is issued.

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

• Hold a current Tennessee contractor license that covers mechanical work and a current Memphis and Shelby County business license.
• Have the company's legal name exactly as it appears on the state license.
• Owner name, home address and Social Security number for the surety's credit review.
• Complete the bond application and review the quoted annual premium.
• Pay the premium and receive the executed $25,000 bond.
• File the bond with Memphis and Shelby County Construction Code Enforcement, 6465 Mullins Station Road, Memphis, TN 38134, as part of your contractor registration.

Detailed Information About the Tennessee Mechanical Contractor ($25,000) Bond:

Who posts this bond

The mechanical company itself. Code Enforcement's submittal guidance states that the mechanical, plumbing and electrical work on a project shall be performed by a licensed contractor in the appropriate field which is registered with the Memphis and Shelby County Office of Construction Code Enforcement, and that mechanical permits must be pulled by a licensed mechanical company. The general contractor's registration does not carry the mechanical permit, which is why the bond sits with the mechanical contractor.

What the bond guarantees

The bond runs to Memphis and Shelby County and answers for the contractor's compliance with the mechanical code on permitted work. The Joint Technical Codes use the same kind of instrument for other trades. Section 112.4 of the local amendments to the 2021 International Plumbing Code, for example, sets a $25,000 permit bond for plumbing contractors that indemnifies the City of Memphis, the County of Shelby and any citizen against loss from improper compliance with the Technical Codes, and that bond stays in force every year until cancelled by written notice to the principal and obligee. Ask Code Enforcement for the current mechanical bond form, and whether it is written as a continuous bond, before the bond is issued.

The bond does not replace your licenses

Code Enforcement registration assumes the company is already properly licensed by the State of Tennessee contractor licensing board and holds a current Memphis and Shelby County business license. The state board can verify your qualifying agent at (615) 741-8307. The bond is one more item in the file, not a substitute for either license.

How the premium is set

The surety prices the bond on the owner's personal credit, the company's time in business and its financial strength. The premium is paid once a year for as long as the bond stays in force. Strong credit usually means the lowest rate, and weaker credit is often still bondable at a higher rate.

Eligibility and Requirements for a Tennessee Mechanical Contractor ($25,000) Bond:

• Bond amount of $25,000.
• Memphis and Shelby County named as obligee, on the form Code Enforcement currently accepts.
• Principal name on the bond matching the state license and business license exactly.
• A surety company authorized to write bonds in Tennessee.
• Owner credit review, which shapes the rate more than eligibility at this bond size.

Tennessee Mechanical Contractor ($25,000) Bond FAQs:

Official and Additional Resources for the Tennessee Mechanical Contractor ($25,000) Bond: