Winston-Salem Contractor Bond
The City of Winston-Salem requires contractors performing plumbing work to hold a minimum $2,500 Plumbing Contractor’s Bond in order to pull a permit with the city. Other construction trades are not required to hold a bond, unless they choose to delay payment of the permit fees.
Using a bond to delay permit fee payment is common for electrical, heating, insulation, or refrigeration contractors, and the bond limit is typically $2,500 or $5,000, but can vary and increase depending on the amount of credit the city is extending.
PURCHASE WINSTON-SALEM CONTRACTOR BOND
You can expect a quick bonding process with Jet for the lowest cost! We have done away with middlemen brokers and agents to get you bonded directly from the company that will represent you.
How Much Do the City of Winston-Salem Contractor Bonds Cost?
The City of Winston-Salem Contractor Bonds only costs $100 for up to a $10,000 bond amount. Bond rates are based on the risk, so higher bond amounts may cost more. However, unlike other bonds, there is no credit check required, the price is the price!
| Term | Cost |
|---|---|
| Monthly | $10 |
| 1 Year | $100 |
| 2 Years | $175 |
| 3 Years | $250 |
The bond process is very quick, we only need basic business information, payment, and the bond will be in your hands!
Who Needs a City of Winston-Salem Contractor Bond?
The City of Winston-Salem Local Ordinance Sec. 10-164 requires that plumbers hold a surety bond for a minimum of $2,500. This is the only mandatory contractor license bond requirement with the city. The bond amount can increase if the plumbing contractor would like to avoid paying permit fees upfront, however, regardless of how much of the permit fees are paid, a plumbing contractor must hold a $2,500 contractor bond.
Other contractors, such as insulation, electrical, heating, and refrigeration contractors are required to hold a bond if they choose to hold off on permit fees when the permit is pulled. The bond financial guarantee extended to the city from Jet, so the contractor can avoid paying steep permit fees upfront. The bond amount can vary, even for plumbing contractors, depending on the permit fee and how much of the upfront permit fee the contractor is willing to pay.
How Does the Bond Get Filed to the City of Winston-Salem Contractor Bonds?
Put down the stamp! Jet will file the bond to the City of Winston-Salem on your behalf. We will email a copy of the bond with the receipt to you upon purchase of the bond. If you would like to file the bond yourself by hand, just let us know and we can mail the original copy to you.
If you decide to file the bond directly, you can do so in person or through the mail respectively at the following addresses.
Mail
City of Winston-Salem
Revenue Division
P.O. Box 2756
Winston-Salem, NC 27102
Hand Delivery
Bryce A. Stuart Municipal Building
100 East First Street
Winston-Salem, NC 27101
Can I Cancel My City of Winston-Salem Contractor Bond?
At Jet you can cancel at the plumber license bond at any time! Jet doesn’t hold onto commission fees or add cancellation fees like bonding outfits. Just let us know and we will provide a refund for any unused premium. For those making monthly payments on the bond, the payments will simply end.
The bond has a 30-day cancellation clause, so the bond will not cancel until 30 days after cancellation is filed to the City of Winston-Salem. Refunds and monthly payments take into account the 30 days the bond is still active as Jet is still providing bonding during that time.
The permit replacement bond cannot be cancelled until the fee has been paid in full to the city.
How Can I Avoid a Claim on a City of Winston-Salem Contractor Bond?
For the plumbers, in order to avoid a bond claim, make sure you are aware of the city and state construction regulations for your trade, and pay all fees to the city within a timely manner. Claim can also come from an “aggrieved” person due to damages that occur from unskillfulness or negligent work, but this is much less likely.
For contractors using the bond to delay permit fee payment, simply pay the permit fees when scheduled to.
The Revenue Division of the City of Winston-Salem handles the bond and manages permitting. If you are late on paying a permit, they will take away your privilege to pull permits first before they will file a claim on the bond. Per Sec 10-163 (b)(2), payments for permit fees are due within 10 days, delinquent after 25 days, and a claim will be filed on the bond after 60 days.
After the payment is considered delinquent, the Revenue Division will not issue anymore permits. Historically this has motivated contractors to make payment and avoid a bond claim from the city.
What Happens If I Get a Claim on the City of Winston-Salem Contractor Bond?
Contact Jet upon receipt of a claim notice. Jet’s claims department works diligently to protect you from claims. In regard to claims from nonpayment of the permit fee, there isn’t much room to argue against the city about whether or not you paid the tax. We review the validity of the claim and evaluate if we have to payout per state and local laws. Our goal is to not to payout on claims, but to curb any problems through proper education of the risks.
Our team is well equipped and always works within the bounds of the law. Keep in mind that if a Surety pays out on a claim, you are responsible to pay back Surety Company for the amount paid. The bond is not like liability insurance that covers accidental damages, you are responsible for your business actions. The bond is simply a letter of credit by the Surety Company, Jet in this case, guaranteeing to the city you will pay permit fees and follow construction regulations.
How Do I Renew the City of Winston-Salem Contractor Bond?
The permit delay bond does not need to be renewed.
For plumbers, all we need is a payment to renew the bond. If you’re on monthly payments, then those payments will simply continue without anything further, just make sure the card on file is still good!
Like the initial bond filing, we will handle all renewal paperwork with the city and ensure that you are always properly bonded.
Will I Need Any Other Bonds as a Contractor in the City of Winston-Salem?
Electrical Contractor - Statement of Bonding Ability: Electrical contractors are required by the NC State Board of Examiners of Electrical Contractors to carry a statement of bonding ability in excess of $50,000 for Intermediate licenses and $130,000 for Unlimited licenses to prove that they can apply for a performance bond.
