This bond is required for any contractor or contracting company that plans to perform any work within the City of Saraland, Alabama.
What is a Surety Bond, and why do I need an Electrical Contractor Bond?
A surety bond is a three-way agreement between a Principal (the individual or company performing the work), the Obligee (City of Saraland), and a surety company (the company backing the bond). A surety bond is a protective bond for the Obligee, in the event that the Principal (or Principals employees and/or agents) fails to comply with all laws, regulations, and guidelines, and causes any liabilities, losses, expenses, or damages as a result of their negligence. If there is a claim filed against the bond, the City is clear of any obligations. By requiring a contractor file a surety bond, the City of Saraland is protecting the Saraland public from their taxes being used to pay for a contractor’s financial liabilities.
About a Saraland, Alabama Electrical Contractor’s Bond
If you are an electrical contractor and plan to work for the City of Saraland, you will be required to file this $10,000 surety bond. Luckily, you do not need to pay the entire amount of the bond, only a premium (a percentage of the total cost). The costs for an Electrical Contractor’s Bond are as follows:
- 1 year – $100
- 2 years – $175
- 3 years – $250
It is important for you, your employees, and agents, to understand and comply with all laws and regulations for Electrical Contractors. In the event that you or anyone under your surety bond violates this agreement, you may have a claim filed against your bond. In the event that there is a bond filed against your bond, your surety company will perform an investigation and determine validity. If the claim is found to be valid, your surety company will pay the damaged party, at which point you will be required to repay your surety the full amount, as well as any associated fees.
Your surety company may revoke your bond at any time, at which point your license and ability to work with the City of Saraland will be invalidated until you are able to file a new bond. Therefore, it is very important that you understand the terms of your bonds, and avoid claims against it at all costs. Claims against any surety bond act as a mark against your “credit,” and will affect your ability to get future bonds. If you are unable to obtain a surety bond, you may be unable to perform work that requires a bond.
If you feel that a claim against you is invalid, or is the result of a miscommunication, it is important that you contact your surety agent immediately. Your agent will perform the investigation, and if they determine the claim is invalid, it will have no effect on your business operations, licensure, or bond.
1 year - $100
2 years - $175
3 years - $250
Each year is covered for $10,000.