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Birmingham Contractor’s Bond
The City of Birmingham, Alabama requires electrical, plumbing, and gas businesses to obtain a custom Contractor’s Bond in order to be licensed and able to operate within the city limits.
Jet Insurance Company offers the Contractor’s Bond as a tool to reassure the City of Birmingham that applicants will uphold all obligations of their license, as well as the standards set by the associated city code. The surety bond also acts as a financial guarantee to the City and its residents if damages are caused by a violation of such regulations or if the licensee fails to pay all fees due to the City.
If you are looking to perform contractor services in the City of Birmingham, the Jet team can lend you a helping hand in securing a Contractor Bond quickly and at an affordable price!
What Is the Bond Limit and Cost of the Birmingham Contractor’s Bond?
The limit of the Contractor Bond is based on the license classification of the applicant. Businesses with electrical or plumbing licenses qualify for a standard $10,000 bond limit, while licensees in the gas industry (butane or propane) qualify for a $2,500 bond limit. The Birmingham Director of Finance will be in charge of approving your bond limit.
Our prices for the Birmingham Contractor’s Bond start at $100 annually or $10 monthly. Further bond terms and associated rates can be found in the chart below.
| Bond Term | Cost |
|---|---|
| Monthly | $10 |
| 1 Year | $100 |
| 2 Years | $175 |
| 3 Years | $250 |
Jet issues the Birmingham Contractor’s Bond instantly! Meaning, your bond is available to purchase at a set price after completing Jet’s online application; no credit check, additional fees, or extra paperwork will be required of you.
Which Businesses Need the Contractor’s Bond in Birmingham, Alabama?
According to the Tax and License Division, the following contractor businesses (listed in the table below) are required to acquire a Birmingham Contractor’s Bond in a custom limit to become licensed and operational in the City of Birmingham.
| Contractor Business Type: | License Required: |
|---|---|
| Electrical businesses that install, maintain, and/or repair electrical equipment | City of Birmingham Master Electrician's Registration |
| Plumbers and gas fitters engaged in plumbing, gas fitting, steam fitting, drain laying, excavating, and/or blasting | State of Alabama Master Plumber/Gas Fitters Registration |
| Gas businesses engaged in manufacturing or distributing butane and/or propane gas | Gas - Butane or Propane Business License (Bond requirement found on page 42) |
As of 2019, the City of Birmingham has contracted Avenu Insights & Analytics to provide business license and filing services. The license applications mentioned above may be completed and submitted to Avenu at [email protected] or mailed to the address below.
Avenu Business License Department
PO Box 830900
Birmingham, AL 35283-0900
How to Apply for the Birmingham Contractor’s Bond With Jet
Applying for the Contractor’s Bond with Jet is easy! Since this bond is instantly issued, our online application will only ask for some general information that is needed for the bond form. Once you have submitted the application and completed payment, a copy of the form and a receipt will immediately be sent to you. It's as simple as that!
How Is the Contractor’s Bond Filed in Birmingham, Alabama?
The Jet team can take care of filing your Contractor Bond for you! Although, if you would prefer to file the bond yourself, please select that option at checkout and we will send the original, sealed bond form to the address of your choice.
The signed and sealed Birmingham Contractor’s Bond form must be mailed to the address below for filing.
City of Birmingham
Tax and License Division
710 20th Street N
Birmingham, AL 35203
Can I Cancel My Birmingham Contractor’s Bond and Get a Refund?
Yes, you may cancel your Contractor Bond with Jet at any time! Just send a written cancellation request to our email at [email protected] or mail in the request, and we will proceed with sending a bond termination notice to the Birmingham Director of Finance. Once approved, liability of the bond will be released within 15 days of the request.
As for refunds, annual payment bondholders may be able to receive a reimbursement for time left on their bond after the cancellation is final. For monthly payment bondholders, your payments will stop once your bond is no longer officially active; a refund is not applicable as the bond has not been paid in full.
How to Renew the Birmingham Contractor’s Bond
Jet can take care of the renewal process for you! Annual and multi-year bondholders will be sent a renewal invoice well in advance of the bond term expiration date. No additional paperwork or fees are required; payment of the renewal premium is all that is needed.
Monthly payment bondholders don't have to worry about expiration dates! Payments for your bond will continue to come out your preferred account and keep your bond active until cancellation is requested.
The Tax and License Division will require the filing of an annual continuation certificate for the Contractor Bond to keep the bond in force and maintain an active license in the City of Birmingham.
How Does a Licensee Avoid Birmingham Contractor’s Bond Claims?
The City of Birmingham, Alabama expects all electrical, plumbing, and gas businesses to abide by the regulations found in the Birmingham Technical Code and the terms of their license. A thorough review of these rules and the industry standards expected of you is the best way to avoid bond claims. Failure to uphold these obligations may result in large fines, a suspension or termination of license, civil action, and even a bond claim.
Key acts that could lead to a bond claim are:
- Failing to complete work up to industry standards or city code regulations
- Failing to safeguard all ditches and excavations opened on job site
- Failing to restore public area of job site to former condition
- Failing to maintain restored public area in a safe condition (this only applies to a 1-year period from the date of such excavation work)
- Failing to pay all fees due to the City (these must be paid by the 15th of each month)
It is important to note that the City of Birmingham and any of its residents has the legal right to file a claim on your bond. The City can file a claim directly on your bond if any of the above violations have been committed while a resident can take civil action if they feel they have been damaged financially from a license or code violation you have committed. If civil action is taken and the court rules in the resident's favor, a claim will be filed on the Birmingham Contractor’s Bond.
It is in your best interest to try and resolve any issue with the City or the public before a loss of license and a hefty bond claim occurs.
What Happens if I Get a Birmingham Contractor’s Bond Claim?
If you receive a claim on your bond directly from the City or a Birmingham court, contact Jet immediately! Our team will investigate the claim to determine its validity and defend you against any false claims. Any relevant documentation submitted by you and the claimant will be reviewed.
If the review finds that the claim is justified, Jet Insurance Company is obligated to make payment up to the bond limit. The Birmingham Contractor’s Bond acts as an extension of credit to reimburse the injured party right away, and you are required to reimburse Jet in the amount that was paid out for the claim. Failure to do so will result in future difficulties qualifying for surety bonds and complications with your contractor license in the City of Birmingham, Alabama.
