A $5,000 Modular Building Set-up Contractor Bond is required for any person erecting a modular building who is not licensed as a general contractor in North Carolina. The bond from Jet Insurance Company provides a financial guarantee to the State that modular buildings are set-up to modular construction regulations and must be filed to the local permit office or building official before a permit will be issued by the set-up contractor.
At Jet, we remove the middlemen who charge high commissions and bog down the application process. By going direct with Jet Insurance Company, you can avoid the red tape and get the bond online instantly for a low price!
The Modular Building Set-up Contractor Bond is $100, that’s it! There is no hassle and no credit check required. We only need general business information from you to properly fill out the bond and get it in your hands.
What are you waiting for? Get the bond easily for a low price now!
The bond is required for a person erecting a modular building that is not licensed in North Carolina as a general contractor. There is one exception to the requirement. If the manufacturer or dealer of the modular home has a general contractor license then the setup contractor does not need to furnish a $5,000 bond or have a general contractor license; as long as there is a contract between the setup contractor and the holder of the general contractor license, and the general contractor license number is on the permit, then the $5,000 bond is not required.
This bond is not required for the setup of manufactured homes, just modular buildings. The distinct difference between the two is that manufactured homes are built on a permanent chassis and are constructed according to a national level HUD code. Manufactured home is a modern name for mobile home. Modular homes look like site-built homes, but are constructed offsite, and simply assembled onsite up to the states residential building code.
Note, the bond form is titled Modular Building Set-up Contractor License Bond, but this bond is not required to hold a license. There is no specific license for set-up contractors working on modular buildings, but there is one for manufactured housing set-up contractors. This is a permit bond that is required to pull a permit to set up a modular building.
The bond is filed with the local building official from the city or county you are pulling a permit. We will provide an electronic copy of the bond immediately after purchase that you can file directly with your local permitting office. An original copy will also be mailed to you.
There are many permit offices across the state that can be located with the NC Code Enforcement Jurisdiction Search. Below are the addresses of the largest county offices in the state:
Mecklenburg County Code Enforcement
2145 Suttle Avenue
Charlotte, NC 28208
Wake County Office Building
336 Fayetteville Street, Suite 101
Raleigh, NC 27601
Guilford County Office
301 West Market Street
Greensboro, NC 27401
The bond is in place to ensure that a modular building is set up in accordance with North Carolina State Building Code and installed according to the manufacturer’s guidelines. Following manufacturer guidelines will be important in avoiding a claim on the bond. Below are items required by the North Carolina Building Code Council listed under the "Plans - Required Contents and Review Procedures" that will be inspected to ensure the modular building is set-up to code:
The North Carolina State Building Code Council is tasked with ensuring buildings are constructed up to an agreed upon standard for residential homes. They do not require persons setting up a modular home to be a licensed contractor as many other states and municipalities would. However, they require the bond to make a set-up contractor responsible to properly install the modular home up to the standards expected of a general contractor, without having the state licensure for general contracting.
Inform Jet immediately if you are aware of an impending claim. Jet will investigate claims against you to verify their validity. A claim can come directly to Jet as well, in that case, we will contact you for details pertaining to the modular home setup. Other carrier’s agents and brokers disappear when an issue arises leaving it to a surety carrier, that you may have never heard of, to service the claim.
Should the claim be deemed valid, Jet will make payment up to the $5,000 limit of the bond. You are responsible to pay back Jet for the bond claim as you are ultimately responsible for the setup of the modular home. Think of the bond as a letter of credit to the city/county from Jet, promising that you will set-up the modular home up to the building code.
The bond is required for a person setting up a modular building in North Carolina that is not licensed as a general contractor. The bond covers any code violations resulting from the setup of the modular home not addressed by the set-up contractor.
Building officials require someone without the traditional general contracting license to carry a $5,000 bond to ensure there is a financial remedy for any code violations resulting from the setup, since they do not have proven building experience through a state contractor license. The low bond requirement is a great deal for businesses without contractor licenses to perform modular home construction.
The process for a $5,000 Modular Bond is simple and fast. There is no credit check, the price is always $100 for a year. All we need to complete the bond purchase is your business information, location of the job, and name of the county or city inspection department requiring the bond. Upon purchase, we will immediately provide a copy of the bond electronically that you can file with the permitting office.
The Modular Building Set-up Contractor License Bond cannot be renewed. The bond is job specific and is required to stay on file with the city or county inspection department for a year after the certificate of compliance is issued for the modular home. You will need to carry a bond for each home that is set-up.
No, the bond cannot be cancelled. It must remain in full force and effect with the city or county inspection department for a full year after the modular building is issued a certificate of compliance.
Businesses setting up modular homes may also be in the market for setting up manufactured homes. Contractors setting up manufactured homes are required to be licensed and to maintain a $10,000 license bond.