Surety Bond Encyclopedia

Contractor License ($15,000) Bond - City of White Oak, TX in Texas

Brief Summary

White Oak will not issue a building permit to a contractor who is not registered with the city for the year. This $15,000 contractor license bond names the City of White Oak as obligee, and a surety bond lets you meet the requirement for an annual premium instead of setting aside $15,000 in cash.

The City of White Oak, Texas requires an annual city registration from contractors who want to obtain a building permit, and the registration fee is $50. This listing covers the $15,000 contractor license bond with the City of White Oak as obligee. Plumbing contractors are handled differently under Texas law, so confirm the current bond amount, form and filing steps with White Oak City Hall before the bond is issued.

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How to Apply for a Contractor License ($15,000) Bond:

Confirm with White Oak City Hall that your trade must register and post the bond.
Have the business name exactly as it will appear on the city registration.
Complete the bond application and review the quoted premium.
Pay the premium and sign the $15,000 bond naming the City of White Oak as obligee.
File the bond with your annual city registration and pay the $50 registration fee.
Keep the bond in force for as long as you hold a White Oak registration.

Detailed Information About the Texas Contractor License ($15,000) Bond:

Plumbers and other state licensed trades

The point most contractors miss is that White Oak's registration rule does not treat every trade the same. The city's building and permits page says an annual city registration is required of contractors who want a permit, with the exception of plumbers. Under Texas law plumbing contractors are not required to register with White Oak, although they still pull permits. Texas Occupations Code 1301.551 also says a plumber required to get a permit does not pay a plumbing registration fee or administrative fee to a city.

Electricians and air conditioning contractors have similar protection. Section 1305.201 bars a city from collecting a permit fee, registration fee, administrative fee or any other fee from a state licensed electrician for work in the city, other than a building permit fee. Section 1302.304 bars a city registration fee for a state licensed air conditioning and refrigeration contractor. If you hold one of these state licenses, ask City Hall how the registration and bond apply to your trade before you buy the bond.

Who posts the bond

The bond is posted by the contractor registering with the City of White Oak, with the city named as obligee. The amount on this listing is $15,000. Registration is annual and the city fee is $50.

What the bond guarantees

A contractor license bond is the contractor's promise to the city that work done under city permits will follow the city's codes and ordinances. If the city or a harmed party makes a valid claim, the surety pays up to the bond amount and the contractor repays the surety. It is not insurance for the contractor.

Filing

White Oak handles registration and permits at City Hall, 906 S. White Oak Road. Confirm the current amount, bond form and filing steps with City Hall at (903) 759-3936 before the bond is issued.

Eligibility and Requirements for a Texas Contractor License ($15,000) Bond:

Annual City of White Oak contractor registration before a building permit is issued.
Bond amount of $15,000 as listed, with the City of White Oak as obligee.
Registration fee of $50.
Building permits for regulated work, including plumbing work by plumbers who are exempt from registration.
An owner credit review by the surety, which shapes the premium.

Texas Contractor License ($15,000) Bond FAQs:

I am a licensed plumber. Do I have to register with White Oak?

The city's building page says plumbing contractors are not required to register under Texas law, but they are still required to pull permits. Texas Occupations Code 1301.551 also bars a city from charging a permit holder a plumbing registration fee or administrative fee. Ask City Hall whether anything else applies to your job.

I am a state licensed electrician or air conditioning contractor. Does the city registration apply to me?

Texas law limits what the city can charge you. Section 1305.201 bars city fees on licensed electricians other than building permit fees, and Section 1302.304 bars a city registration fee for licensed air conditioning and refrigeration contractors. Confirm with City Hall how the registration and bond apply to your trade before you buy the bond.

How much is the city registration?

The City of White Oak lists a $50 registration fee, and the registration is annual. The bond premium is a separate cost paid to the surety.

Who is the obligee on the bond?

The City of White Oak. Put the exact business name from your city registration on the bond so the two documents match.

How is the premium set?

The surety quotes the premium after reviewing the bond amount and the owner's credit and claims history. The $15,000 figure is the coverage limit, not the price.