Mobile, AL Contractors License Bond

This bond may also be referred to as a CLB Bond, Contractors License Surety Bond, Construction Bond, or Construction Surety Bond. 

What is a surety bond, and why do I need one for my Mobile, Alabama Contractors License?

A surety bond is a three-way agreement between the bond Principal (Person applying for an Electrical or Plumbing Contractors License), the Obligee (Mobile County License Commission), and the surety company backing the bond. A Contractors License Bond acts as a guarantee from the Principal that they (as well as their employees and/or agents) understand and agree to comply with all regulations, laws, and guidelines pertaining to their license, as well as the work they are permitted to perform. If they fail to do so or act fraudulently in any way, Mobile and the public are free from any liabilities that may arise.

This bond is issued at a flat rate in either 1-, 2-, or 3-year terms. The premiums are as follows:

• 1-year – $100
• 2-years – $175
• 3-years – $250

The bond amount is $10,000 (the total amount that your surety backs the bond with).

This bond is required for any plumbing contractor or electrical contractor who wishes to engage in work for the City of Mobile. In the event that there are any claims made against your bond, your surety company will pay the initial damages to the injured party. You will be responsible to fully repay your surety, in addition to any associated fees. In the event of a claim, your surety company may revoke your bond. If this is the case, you will be unable to continue any work for the City of Mobile until you are able to file another bond.

If there is a claim made against your bond, your surety will handle the investigation to determine the best solution. If the claim is found to be false, you will have no interruptions to your business operations or any issues with your bond. it is very important that you avoid claims against your bond, as claims act as a mark against your “credit,” and will influence any future surety bond applications you may submit. If you are unable to obtain a surety bond, you will be unable to perform work for the City of Mobile, Alabama, and most, if not all, other municipalities or public works projects.

What does the bond cover?

This bond guarantees that the licensed contractor understands and agrees to stay compliant any and all codes, rules, and regulations of the City of Mobile. In the event of any damages, liabilities, or loss due to misconduct or fraud by the licensed contractor, their employees, and/or agents, the public and the City are protected from any financial responsibilities.

Who needs this bond?

Any contractors planning to work within the City of Mobile must file this $10,000 bond with the city before beginning the work.

How much does this bond cost?

1-year - $100
2-years - $175
3-years - $250

You will need an active bond for the entire duration of your work with the City of Mobile, so be sure to select the correct term and avoid possible lapses in coverage.

How do I apply?

To apply for a Mobile, Alabama Contractors Bond, simply complete our online application below. You may also download a .pdf version of the application, and either submit it to apps@www.southcoastsurety.com, or fax it to (949)361-9926. If you choose to email or fax your application, please complete a payment form and attach it to your application. Once we have received your completed application and payment, please allow 1-3 business days for us to issue your bond. We will send your bond directly to you, and you will need to then file it with the Secretary of State.