Gas Contractor ($5,000) Bond - Morristown, TN in Tennessee

Brief Summary

Gas work inside the Morristown city limits is permitted and inspected by the city's Building Inspections Department, and the $5,000 gas contractor bond is part of getting set up to pull those permits. You pay a yearly premium instead of tying up $5,000 in cash, and the bond is usually issued the same day you apply.

The City of Morristown, Tennessee requires a $5,000 surety bond from contractors who install or alter gas piping and gas appliances in the city. The city is the obligee. The bond backs the contractor's promise to follow the fuel gas code the city has adopted and to pay for losses if the work does not meet it. Confirm the current bond form and filing steps with Morristown Building Inspections before the bond is issued.

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How to Apply for a Gas Contractor ($5,000) Bond:

• Have your legal business name exactly as it will appear on your Morristown permits and license.
• 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 $5,000 bond naming the City of Morristown as obligee.
• File the bond with Morristown Building Inspections along with your certificate of liability insurance and contractor license.
• Renew the bond before it lapses so your permits are not held up.

Detailed Information About the Tennessee Gas Contractor ($5,000) Bond:

Who posts this bond

The bond is posted by the contractor doing the gas work, not by the property owner. It runs to the City of Morristown, and the Building Inspections Department is the office that issues permits and performs inspections for electrical, plumbing and gas work in the city. If you install gas lines, connect gas appliances or alter existing gas piping inside the city limits, plan on having the $5,000 bond in place before you apply for a permit.

What code the work is held to

Morristown has adopted the 2018 editions of the International codes, including the International Fuel Gas Code, along with the 2018 International Mechanical, Plumbing and Residential codes. The bond guarantees that your gas work will comply with those codes and with city ordinances. If a job fails inspection and is left uncorrected, or the city or a customer suffers a loss because the work broke the code, a claim can be made against the bond up to $5,000. You are expected to repay the surety for any claim it pays.

What people usually miss

The bond does not replace your business licensing or insurance. The city asks contractors to provide a copy of their certificate of liability insurance along with their contractor license. For projects under $50,000 a Hamblen County business license is enough. Projects over $50,000 need both a City of Morristown business license and a Hamblen County license.

Third party inspections are not accepted in place of the Building Official's required inspections unless the Chief Building Official approves them. Budget your schedule around city inspections.

How the premium is set

You do not pay $5,000. You pay a yearly premium that the surety sets after reviewing the owner's personal credit and the business history. Strong credit gets the lowest rate. The bond stays in force as long as you renew it each term.

Eligibility and Requirements for a Tennessee Gas Contractor ($5,000) Bond:

• Bond amount of $5,000.
• City of Morristown, Tennessee named as obligee.
• Work performed to the 2018 International Fuel Gas Code as adopted by the city.
• Certificate of liability insurance and a copy of your contractor license on file with the city.
• Hamblen County business license, plus a City of Morristown business license on projects over $50,000.

Tennessee Gas Contractor ($5,000) Bond FAQs:

Official and Additional Resources for the Tennessee Gas Contractor ($5,000) Bond: