The City of Montgomery, Alabama may require contractors that perform electrical, plumbing, gas fitting, HVAC, site clearing, and/or grading work to acquire a surety bond as a requisite of their permit application process.
Jet Insurance Company provides contractor license and permit bonds as an extra assurance to the City of Montgomery that the contractor will follow all regulations of their license or permit, as well as the associated code. The surety bond acts as a fiscal guarantee for the City and the public in cases of the contractor performing poor, faulty, or incomplete work.
The Electrical Bond, Plumber and/or Gas Fitters Bond, and HVAC Bond have a standard $5,000 bond limit. At Jet, prices for these contractor license bonds in Montgomery start at $100 annually or $10 monthly. Refer to the chart below for additional multiyear options.
The Site Clearing, Earthwork, Grading, and Site Activity Performance Bond has a custom limit that is determined by the Montgomery Engineering Department; the limit is based on the total estimated cost for restoration of the disturbed acreage within the job site.
A soft credit check and the possible submission of additional information will be required of applicants applying for the permit bond, especially for larger limit bonds. Once all info has been reviewed, one of Jet’s underwriters will immediately contact you with an approved rate. Just complete payment and your bond will be ready for you!
How to apply for the bond: You can start the bond application simply by clicking the button above! Our application process only takes a few minutes and asks for general information such as your name and personal social security number (if applicable). Once an approved rate has been provided and you have fulfilled payment, Jet will immediately send a copy of your bond and receipt to the address of your choice.
How to file your bond: Jet can take care of filing your bond for you, but if you would like to file the original, signed and sealed bond yourself, this option is available for selection at checkout.
Electrical, Plumber/Gas Fitters, and the HVAC Bonds should be mailed to the following address with any additional paperwork.
City of Montgomery
License and Revenue Division
PO Box 5070
Montgomery, AL 36101
The Site Clearing, Earthwork, Grading, and Site Activity Performance Bond should be mailed to the following address with any additional paperwork.
City of Montgomery
25 Washington Street Room 206
Montgomery, AL 36104
All permit information and various contractor permit applications can be found on the City of Montgomery “Apply for a Permit” webpage.
How to cancel your bond: If you need to cancel your bond, just email us at [email protected] and we will begin the process of notifying the City of Montgomery. Liability for the Electrical Bond and HVAC Bond will be released within 30-days of the cancellation notice, while the Plumbers/Gas Fitters Bond has a grace period of only 15 days.
A request will be sent to the Montgomery Engineering Department for cancellation of the Site Clearing, Earthwork, Grading, and Site Activity Performance Bond. Liability will be released once the Department has approved the permit job for completion.
Once each bond’s liability period has ended and cancellation is official, monthly payments will cease or Jet will reimburse those who paid in full any unearned premium left on the bond term.
How to renew your bond: Your bond must be in place for the entire duration of your permit. If you paid for your bond in full, Jet will send you an invoice for renewal prior to the bond term’s expiration date. Standard payment is all that is needed. If you are making monthly payments, there is no renewal process. Your bond payments will continue to come out of your preferred account until cancellation is sought.
Contractors who perform trades such as electrical, plumbing, gas fitting, HVAC, site clearing, and/or grading work are expected by the City of Montgomery to follow permit and contractual obligations, as well as Montgomery, Alabama Code of Ordinances to avoid bond claims. The City of Montgomery has provided further details about codes and regulations to be followed, they can be found on each contractor classification’s permit webpage.
For the site clearing/grading permit bonds the City’s main concern is for the completed site to “achieve permanent site stabilization”.
Licensed electrical, HVAC and plumbing contractors need to uphold their contracts and fix all warranted issues.
The City or any affected person may take civil action against the contractor for violations and/or damages caused. For example, claims can be filed for faulty workmanship or abandonment of a job. It is in your best interest to work with the City or any damaged party to resolve any issues before penalties and a pricey bond claim ensues.
Immediately contact Jet once you receive notification of a claim on your bond! The Jet team will review and investigate all details provided prior to paying the claimant. If the claim is found to be justified, Jet Insurance Company is legally obligated by the terms of the bond form to make payment up to the bond limit. You are ultimately held responsible for your actions and must reimburse Jet back for the paid out claim. Failure to do so will result in future compilation acquired a contractor permit and surety bond.