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Dothan, Alabama Contractor License Bond
The Contractor License Bond is a requirement for various contractor classifications in the City of Dothan, Alabama. In order to get a business license and keep it active, the indemnity bond must be on file with the City at all times. With this bond, Jet provides a guarantee to the City of Dothan and its people that there is compensation available if a contractor’s actions lead to financial loss.
By cutting out middleman agents and brokers, Jet is able to get you a bond instantly. No need to wait around for a quote, just apply and get your bond today!
What Is the Lowest Price for the Contractor Bond in Dothan?
At Jet, the bond costs $100, that’s it. Want to save some money in the long run? Go for a multi-year term. The chart below lays out the pricing options:
| Bond Term | Cost |
|---|---|
| Monthly | $10 |
| 1 Year | $100 |
| 2 Years | $175 |
| 3 Years | $250 |
You can also choose to pay for the bond monthly, for just $10 per month. Jet is the only company in Alabama that offers the monthly payment option for the Contractor License Bond.
What Bond Limit Is Needed for My Contractor Classification?
Depending on your license classification, the bond limit varies. To make things simple, homebuilding contractors need a $10,000 bond, general contractors need a $10,000 bond, subcontractors, contractors and homeowners exercising owner’s privilege need a $2,000 bond, and contractors in all other trades need a $5,000 bond. Refer to the chart below for specifics:
| Contractor Classification | Bond Limit |
|---|---|
| General — Non-Residential/Comm. Bldg. Construction (Greater than $10,000) | $10,000 |
| General — Residential Bldg./Housing Construction (Greater than $50,000) | $10,000 |
| Heavy Construction | $10,000 |
| Electrical | $5,000 |
| Plumbing, Heating, and Air-Conditioning (HVAC) | $5,000 |
| Glass and Glazing | $2,000 |
| Framing | $2,000 |
| Flooring | $2,000 |
| Drywall and Insulation | $2,000 |
| Poured Concrete Foundation and Structure | $2,000 |
| Finish Carpentry | $2,000 |
| All Other Specialty Trade | $2,000 |
| Masonry | $2,000 |
| Other Foundation, Structure, and Building Exterior | $2,000 |
| Other Building Equipment Contractors | $2,000 |
| Other Building Finishing | $2,000 |
| Tile and Terrazzo | $2,000 |
| Roofing | $2,000 |
| Siding | $2,000 |
| Site Preparation | $2,000 |
| Structural Steel and Precast Concrete | $2,000 |
| Painting and Wall Covering | No Bond Required |
| Home Security Systems — Installation Only | No Bond Required |
Each classification has to pay a $150 licensing fee to the City of Dothan annually.
Why Is the Dothan Contractor License Bond Required?
The City of Dothan’s purpose is to ensure the general welfare of Dothan’s citizens through enforcement of the rules, regulations, and laws for various industries. Contractors, specifically, must be licensed, and the indemnity bond is a requirement to get and maintain that license. The bond is a way for Dothan to guarantee the protection of its citizens from financial harm caused by a contractor licensed under Chapter 18 of the Dothan, Alabama Code of Ordinances.
For example, a person hired a licensed general contractor to remodel their kitchen. The contractor does the demo and disappears. The homeowner cannot get a hold of the contractor to complete the job. The surety bond is the homeowners only recourse to recoup losses sustained as a result of the job abandonment. Now imagine they hired an unlicensed handyman, that homeowner is screwed. The surety bond from Jet gave the Dothan citizen protection.
How to Apply for the Contractor License Bond With Jet
Applying for a Contractor License Bond has never been easier! The application only asks for information necessary to complete the bond form. At the end, you will be able to provide payment and a copy of the bond and receipt will be available immediately.
How Does the Contractor Bond Get Filed to the City of Dothan?
Jet will take care of filing the bond for you! If you need to file the bond, just select that option at checkout and we can send the original bond to your preferred address.
Ultimately, the bond is sent to the address below:
City of Dothan
PO Box 2128
Dothan , AL 36302
Can I Cancel My Contractor Bond and Get a Refund?
Yes, Jet allows you to cancel your bond and receive a refund if the bond was paid for in full for any prorated amount left on the bond. There is a 30-day cancellation provision on the bond form, which just means that once you send us a written cancellation request (you can do so via email: [email protected]), we must notify the City Treasurer who keeps the bond active for 30 days. That 30-day period must be taken into account for the refund. Any unearned premium left on the bond after that will be returned to you.
If you are paying monthly, no refund will be available but the payments will end after the 30-day cancellation period.
Do I Have to Renew My City of Dothan Contractor Bond?
There is no renewal process if you are making monthly payments. So long as Jet continues to receive payments, your bond will remain active.
If you are paying annually, Jet will notify you via email and mail that your bond payment is due prior to the bond’s expiration date. As long as payment is received on time, your bond will stay on file with the City of Dothan.
How Does a Contractor Avoid Bond Claims With the City of Dothan?
Familiarizing yourself with the regulations for contractors in the City of Dothan, and abiding by those regulations, is the best way to avoid bond claims. Those can be found in the Dothan, Alabama Code of Ordinances, Chapter 18 and Chapter 14. Claims typically come from the public or the City for negligence and failure to uphold a contract.
The City of Dothan looks into any complaints from homeowners, but is also able to investigate on their own accord. A contractor is responsible to fix any issues that arise, or have disciplinary action taken on the license including civil penalties, criminal penalties, license revocation or suspension, and a bond claim.
What Happens if I Get a Dothan Contractor License Bond Claim?
Even if the City of Dothan has investigated the claim and requested Jet make a claim payout, Jet still does their due diligence to ensure the claim is not faulty. However, if the claim is proved valid by Jet a payment will be made for the claim amount, up to the full bond limit.
A payout on the bond means the bond is not at full capacity, and must therefore be restored. Failure to pay Jet back for the claim will result in license complications and future difficulties obtaining a surety bond.
Are There Other Bonds That a Contractor in Dothan, Alabama Needs?
The State of Alabama has two license bond requirements: