Alabaster, Alabama Public and Street Improvement Permit Bond

City of Alabaster Public and Street Improvement Permit Bond

For contractors in the City of Alabaster, Alabama, a permit bond may be required for public improvements and street excavation projects. The City will require the surety bond, provided by Jet Insurance Company, as a means to protect public spaces from damages that can occur during a construction project.

VIEW YOUR BOND PRICE

For most projects requiring a contractor permit bond in Alabaster, you can purchase the required surety bond for just $100 with Jet in a matter of minutes.

What Determines the Cost of the Alabaster Contractor Permit Bond at Jet? 

The bond amount or limit is based on the size of the project. For any project under $20,000 in value, the bond cost will always be $100 with Jet. Otherwise, it will be a small percentage of the bond limit. For larger bond amounts, Jet will use personal credit and may even need financial statements to determine the rate of the bond. Below is a chart of our preferred pricing for several bond limits.

Bond LimitCost
$10,000$100
$25,000$125
$50,000$250
Alabaster Permit Bond Pricing

Without middlemen agents slowing the ‘surety roll’, the process from start to finish with Jet is the fastest in the surety industry.

What Is the Purpose of a Public Improvement Bond? 

The City of Alabaster requires the public improvement or street excavation bond in order to protect themselves from having to pay for damages caused by contractors in public spaces.

The contractor shouldn’t cause damages, but accidents happen. In such cases, the contractor should fix the problem, but sometimes other circumstances are in play such as financial hardship or pride that clouds their judgement. In those cases, the City would have to pay to fix the damages, but with a surety bond in place, the Alabaster can have the surety company (Jet) pay for the damages up to the bond limit.

The goal for the City is to make sure that public areas look the same way they did before construction. Except for the places that the contractors did work on, they should look better, right? What no one in Alabaster wants is unsafe or unsightly public spaces, and the surety bond provides a method to protect Alabaster’s welfare.

Which Projects Require the Public Improvement Permit Bond?

City of Alabaster’s Code of Ordinances Chapter 36 lists the rules and regulations surrounding work that may concern streets, sidewalks, and other public places. We have summed up several of the key points below:

How Do I Purchase the Alabaster Permit Bond With Jet?

Just click the button above and in about 3 to 5 minutes you will have completed the application! We will only need some basic information for the permit bond form, and for payment to be made in order to complete the purchase of the bond. Once all is done, you will get a copy of the bond and a receipt.

If the bond amount is over $50,000, Jet may require additional information to determine the rate on the bond. One of our underwriters will contact you directly after the initial application is submitted.

How Is the Permit Bond Filed With the City of Alabaster?

You can elect to have Jet submit the bond directly to the City, or have the original sealed bond sent to your address for filing with the permit application. You can decide at check out which you would prefer. 

The City of Alabaster address is as follows:

City of Alabaster
1953 Municipal Way Suite 102
Alabaster, AL 35007

What Happens if I Need to Cancel My Public Improvement Bond?

The bond is required for the entire permit lifespan, so you cannot cancel the bond unless the job is complete or if you have another bond to replace the current bond. If that is the case, the bond has a 35-day cancellation period from the time the surety company (Jet) files cancellation with the City to when the bond is officially cancelled.

Email Jet at [email protected] if you need to cancel the bond for any reason. 

Does the Public Improvement Bond Just Expire?

The intent is for you to have the bond to cover the length of your permit project. Jet’s liability extends after the construction has ended, and we collect enough premium from you up front to cover that. From your perspective, the bond will just expire, end of story until the next job comes up.

Should a project extend past one full year, then you will need to renew the bond with Jet. If you complete the project any time before another full year, then Jet will send you a prorated refund for any time remaining on the bond term.

How Does a Principal Avoid Public Improvement Permit Bond Claims?

A contractor needs to complete their permitted work without causing any damages to public spaces, restore any damages caused, and clean up affected areas as permitted work ends. When trouble arises, a contractor needs to rectify any damages that are their fault. This can be fairly difficult as the line where fault lies can be murky.

Typically, a city inspector will examine a job site and follow up with any complaints of damages caused by a contractor. Should they deem you at fault and you know you are at fault, then it is always best to reach an agreement on mitigating the damages caused. Failure to do so may lead to civil penalties, reputational damage, and a claim on the permit bond

What Happens if I Get a Public Improvement Bond Claim?

Give us any information you have regarding the claim and Jet will provide a defense. We have a legal team prepared to take a potentially murky interpretation of damage from a public investigator and bring it to the light. 

However, if the claim is valid and you have not made restitution with the City of Alabaster, Jet will fulfill its obligation and make payment for damages up to the set bond limit. Surety bonds are unlike insurance at this point, and the situation does not end here and go away. The contractor remains responsible for their actions and must repay Jet for the paid out claim. The permit bond is required to guarantee payment to the City, which Jet will provide, but the obligation does not secede there.

Are There Other Bonds That a Contractor in Alabama Needs? 

HVAC and Residential Roofers will need bonding at the state level.

City of Alabaster Public and Street Improvement Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: