City of Hendersonville, TN Excavation Contractor ($50,000) Bond - Statewide in Tennessee

Brief Summary

Hendersonville expects every contractor pulling permits to have a current Permit Bond on file, and for excavation work the City form sets that bond at $50,000. The bond is continuous, so one filing stays in place across jobs, and you pay a premium to a surety instead of setting aside $50,000 in cash.

The City of Hendersonville, Sumner County, Tennessee requires a $50,000 Permit Bond from contractors doing excavation work. The lower $10,000 figure on the City form applies only to building contracts under $25,000, not to excavation. The bond guarantees compliance with City codes on excavation and construction in the public right-of-way and answers for damage to City streets, curbs, gutters, water, sewer and storm drainage lines.

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How to Apply for a City of Hendersonville, TN Excavation Contractor ($50,000) Bond:

• Legal business name exactly as it appears on your Tennessee contractor license and the City permit.
• Owner name, home address and Social Security number for the surety's credit review.
• Executed $50,000 Permit Bond naming the City of Hendersonville, Sumner County, Tennessee as obligee, with the surety seal affixed and power of attorney attached.
• Deliver the bond to the Department of Codes Administration, 101 Maple Drive North, Hendersonville, TN 37075.
• Proof of workers' compensation insurance, or a notarized affidavit stating the business is exempt under state law.
• Certificate of insurance showing the City of Hendersonville c/o Building Department as certificate holder.

Detailed Information About the Tennessee City of Hendersonville, TN Excavation Contractor ($50,000) Bond:

The $10,000 tier is not for excavators

The City Permit Bond form lists the required amount by type of work. Building contracts under $25,000 carry a $10,000 bond and building contracts of $25,000 and over carry $50,000. Electrical, gas/mechanical and plumbing carry $40,000. Excavation and pool work carry $50,000, with no lower figure for small jobs. The City contractor requirements sheet also makes clear that a Permit Bond is still required on contracts or bids under $25,000.

What the bond guarantees

The obligee is the City of Hendersonville, Sumner County, Tennessee. The principal promises to comply with all City codes, laws and ordinances relating to, among other things, excavation and construction in the public right-of-way, building, grading, plumbing, gas/mechanical, housing, fire, health and zoning.

For an excavator, the next part of the form matters just as much. The bond also binds the principal and surety for damage to City property, such as streets, roads, curbs, gutters, water, sewer and storm water drainage lines, sidewalks, alleys, traffic signs and signals. It also covers repair costs incurred by property owners when the principal fails to comply with those codes.

Term, cancellation and surety

The bond is continuous. The surety may cancel it by written notice served on, or sent by certified mail to, the Department of Codes Administration at least ten days before the cancellation takes effect. The surety's liability is not cumulative, and all claims together cannot exceed the face amount. The surety must be listed by the U.S. Treasury or be a Tennessee domestic insurance company, with its seal affixed and a power of attorney attached.

State license and other paperwork

Tennessee Code Annotated 62-6-102 defines a contractor to include anyone who takes on excavation or grading work where the total cost is $25,000 or more, and the City requires a valid state contractor's license on those bids and contracts. The Permit Bond must be in the same name as the state license and the permit. The Building Department also asks for proof of workers' compensation insurance or a notarized exemption affidavit, and a certificate of insurance naming the City of Hendersonville c/o Building Department as certificate holder. Ask the City Business Tax Clerk whether you need a City business license, which can apply no matter where your business is located.

Eligibility and Requirements for a Tennessee City of Hendersonville, TN Excavation Contractor ($50,000) Bond:

• Bond amount of $50,000 for excavation work, whatever the contract price.
• Surety listed by the U.S. Treasury or a Tennessee domestic insurance company.
• Valid Tennessee contractor's license for excavation or grading work of $25,000 or more.
• Continuous bond term, with at least ten days written notice to the Department of Codes Administration before any cancellation.
• City business license where the Business Tax Clerk says one applies.

Tennessee City of Hendersonville, TN Excavation Contractor ($50,000) Bond FAQs:

Official and Additional Resources for the Tennessee City of Hendersonville, TN Excavation Contractor ($50,000) Bond: