Surety Bond Encyclopedia

Home Improvement Contractor Bond - Alexandria, VA in Virginia

Brief Summary

Alexandria checks two things before a contractor gets a city business license or a building permit: a Virginia contractor license number and the city's own paperwork. This bond, with the City of Alexandria as obligee, is part of that city paperwork. Having it issued before you file keeps the license and the permit moving together.

The City of Alexandria is the obligee on this home improvement contractor bond. The city sets the amount, so confirm the current amount, form and filing steps with the city before the bond is issued. The bond does not stand in for a state license. Under Virginia Code 54.1-1111, Alexandria cannot issue or renew a contractor's business license, or issue a building permit, without a contractor license number from DPOR or evidence of an exemption.

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How to Apply for a Home Improvement Contractor Bond:

Hold a Virginia contractor license from DPOR in the class that fits your contract sizes.
Confirm the bond amount, form and filing steps with the City of Alexandria.
Complete the bond application using your legal business name exactly as licensed.
Pay the premium and receive the signed bond naming the City of Alexandria.
File the bond with the city along with your business license paperwork.
Provide your state contractor license and proof of workers' compensation coverage.

Detailed Information About the Virginia Home Improvement Contractor Bond:

The state license comes first

Virginia Code 54.1-1103 makes it illegal to engage in, or offer to engage in, contracting work without a license from the Board for Contractors at DPOR. Virginia Code 54.1-1111 then ties local approvals to that license. A locality may not issue or renew a contractor's business license, and a building official may not issue a permit, unless the applicant furnishes a state license number or evidence of being exempt.

The license class depends on job size under Virginia Code 54.1-1100:

Class C covers a single contract or project over $1,000 but less than $30,000, or total work in any 12 month period of less than $250,000.
Class B covers a single contract or project of $30,000 or more but less than $150,000, or $250,000 or more but less than $1 million in any 12 month period.
Class A covers a single contract or project of $150,000 or more, or $1 million or more in any 12 month period.

What this bond does

This bond names the City of Alexandria as obligee. It guarantees that the contractor will meet the conditions the city attaches to its license or permit, and it gives the city a way to recover covered losses if the contractor does not. The city sets the bond amount and form. Confirm both, along with the filing steps, with the City of Alexandria before the bond is issued. Premium is quoted from the bond amount and the applicant's credit and financial picture.

Other city requirements

Alexandria's business license page lists two documents for contractors: the state contractor license and proof of workers' compensation coverage. On permits, the city's Code Administration notice to owners says the city will verify that the contractor is properly licensed by the State and City for the intended work. The same notice explains the owner exemption under Virginia Code 54.1-1101 for an owner working on a primary residence who has not owned more than one primary residence in Virginia in the past 24 months.

A separate state bond for Class A and B

DPOR has its own surety bond form, A501-27BOND. Class A and Class B applicants use either a financial statement or that bond form to verify net worth. The DPOR form is written for $50,000, runs to the people of the Commonwealth, and is filed with the Board for Contractors. It is a different instrument from the City of Alexandria bond on this page.

Eligibility and Requirements for a Virginia Home Improvement Contractor Bond:

City of Alexandria named as obligee.
Virginia contractor license number, required by Va. Code 54.1-1111 before the city issues or renews a business license or a building permit.
Proof of workers' compensation coverage for the city business license.
Work kept within the dollar limits of your Class A, B or C license.
Bond amount and form as set by the City of Alexandria.

Virginia Home Improvement Contractor Bond FAQs:

Can Alexandria license me before I have a Virginia contractor license?

No. Virginia Code 54.1-1111 bars a locality from issuing or renewing a contractor's business license unless the contractor furnishes a state license number or evidence of being exempt. The same rule applies to building permits.

Which state license class do I need?

It depends on job size. Under Virginia Code 54.1-1100, Class C covers single jobs over $1,000 and under $30,000, Class B covers $30,000 up to $150,000, and Class A covers $150,000 and up. Twelve month totals of $250,000 and $1 million also move you into Class B and Class A.

How much is the Alexandria home improvement contractor bond?

The City of Alexandria sets the amount. Confirm the current amount and the required form with the city before the bond is issued. Premium is then quoted from that amount and your credit and financial picture.

Is this the same as the DPOR $50,000 bond?

No. DPOR form A501-27BOND is a state instrument that Class A and B applicants can use instead of a financial statement to verify net worth. It runs to the people of the Commonwealth and is filed with the Board for Contractors. The bond on this page names the City of Alexandria.

I am a homeowner doing my own work. Does any of this apply?

Virginia Code 54.1-1101 exempts an owner who performs or supervises work on a primary residence and has not owned more than one primary residence in Virginia during the past 24 months. Alexandria's permit notice to owners describes this exemption.