Birmingham Plumbing and Gas Fitting Contractor Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Birmingham Plumbings and Gas Fitting Contractor Bond
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $10,000
- Who Needs it: All plumbing and gas fitting contractors operating in Birmingham, Alabama
- Purpose: To ensure the public will receive compensation for any damages should the contractor fail to complete any work or return altered land to its original condition
- Who Regulates Plumbers and Gas Fitters in Birmingham: The Birmingham Department of Planning, Engineering, and Permits
Background
Birmingham technical code 103.1.1 requires all plumbing and gas fitting contractors operating in the city to obtain a permit before undertaking plumbing and gas fitting contracts. The Birmingham city council enacted the permit requirement to ensure that contractors engage in ethical business practices. To provide financial security for the enforcement of the permit’s provisions, plumbing and gas fitting contractors must purchase and maintain a $10,000 surety bond to be eligible for a plumbing and/or gas permit.
What is the Purpose of the Birmingham Plumbing and Gas Fitting Contractor Bond?
Birmingham requires plumbing and gas fitting contractors to purchase a surety bond as part of the application process to obtain a plumbing and/or gas permit. The bond ensures that the public will receive compensation for financial harm if the contractor fails to comply with the regulations set forth in Birmingham technical code 111.1. Specifically, the bond protects the public in the event the contractor fails to complete any work or does not return altered land to its original condition. In short, the bond is a type of insurance that protects the public if the contractor violates the terms of their permit.
How Can an Insurance Agent Obtain a Birmingham Plumbing and Gas Fitting Contractor Surety Bond?
BondExchange makes obtaining a Birmingham Plumbing and Gas Fitting Contractor bond easy. Simply log in to your account and use our keyword search to find the “contractor” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the Birmingham Plumbing and Gas Fitting Contractor Bond?
No, a credit check is not required for the Birmingham Plumbing and Gas Fitting Contractor bond. Because the bond is considered relatively low risk, the same low rate is offered to all plumbing and gas fitting contractors operating in the city.
How Much Does the Birmingham Plumbing and Gas Fitting Contractor Bond Cost?
The Birmingham Plumbing and Gas Fitting Contractor bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Birmingham requires plumbing and gas fitting contractors to purchase a surety bond as a prerequisite to obtaining a plumbing and/or gas permit, which they need before beginning work on a project. To paraphrase Alabama code 34-37-1, a plumbing and gas fitting contractor is an independent business that installs, repairs, or replaces plumbing systems or apparatuses necessary for the supply of natural gas.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How do Plumbing and Gas Fitting Contractors Apply for a Permit in Birmingham?
Plumbing and gas fitting contractors in Birmingham must navigate several steps to secure a permit. Below are the general guidelines, but applicants should refer to the Birmingham technical code for details on the process.
Step 1 – Purchase a Surety Bond
Plumbing and gas fitting contractors must purchase and maintain a $10,000 surety bond
Step 2 – Obtain a State Registration
All plumbing and gas fitting contractors operating in Alabama must register their business with the Plumbers and Gas Fitters Examing Board. Contractors should mail their registration application, including a $25 fee, to the following address:
Alabama Plumbers and Gas Fitting Examiners Board
216 Aquarious Drive, Suite 319
Homewood, AL 35209
Contractors must employ at least one licensed master plumber or gas fitter. To obtain a master certification, contractors should mail their completed application, including fees totaling $225, to the above address.
Step 3 – Apply for a Business License
All businesses, plumbing and gas fitting contractors included, operating within the Birmingham city limits must obtain a local business license. To apply for a license, plumbing and gas fitting contractors should visit the Tax and License Administration Division between the hours of 8:00 a.m. to 4:45 p.m. at the following address:
First Floor, City Hall
Room TL-100
710 North 20th Street
Birmingham, AL 35203
Step 4 – Complete the Application
All Birmingham plumbing and/or gas fitting permit applications, including all applicable fees, should be mailed or delivered to the following address:
City Of Birmingham
Department Of Planning, Engineering & Permits
710 20th Street, North
Room 210, City Hall
Birmingham, Alabama 35203
Do Birmingham Plumbing and Gas Fitting Contractors Need to Renew Their Permits?
No, all Birmingham plumbing and gas permits are valid for the duration of the project and do not need to be renewed. However, contractors must apply for a new permit every time they accept a job.
How do Birmingham Plumbing and Gas Fitting Contractors Renew Their Business License and State Registrations?
Contractors can renew their local business in person by visiting the following address:
First Floor, City Hall
Room TL-100
710 North 20th Street
Birmingham, AL 35203
Contractors can renew their state registrations online here.
What are the Insurance Requirements for Birmingham Plumbing and Gas Permits?
Birmingham does not require plumbing or gas fitting contractors to purchase liability insurance as a prerequisite to obtaining a plumbing or gas permit. Plumbing and gas fitting contractors must purchase and maintain a $10,000 surety bond.
How Do Birmingham Plumbing and Gas Fitting Contractors File Their Bonds?
Contractors should mail their completed bond form, including the power of attorney, to the following address.
City Of Birmingham
Department Of Planning, Engineering & Permits
710 20th Street, North
Room 210, City Hall
Birmingham, Alabama 35203
The bond requires signatures from both the surety company that issues the bond and from the contractor. The surety company should include the following information on the bond form:
- Legal name of entity/individual(s) buying the bond
- Surety company’s name
- Date the bond is signed
What Can Birmingham Plumbing and Gas Fitting Contractors Do to Avoid Claims Against Their Bonds?
To avoid claims on their bonds, plumbing and gas fitting contractors in Birmingham must follow all provisions contained within the bond form, including some of the most important issues below that tend to cause claims:
- Adequately perform all work that has been paid for
- Return all streets altered through the course of a project to their original conditions
- Ensure, for a period of 1 year, the safe conditions of all excavated sites
What Other Insurance Products Can Agents Offer Plumbing and Gas Fitting Contractors in Birmingham?
Birmingham does not require plumbing and gas fitting contractors to purchase any form of liability insurance as a prerequisite to obtaining a plumbing and/or gas permit. However, most reputable contractors will seek to obtain this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Birmingham Plumbing and Gas Fitting Contractor Customers?
Birmingham unfortunately does not provide a public database to search for active plumbing and gas fitting contractors in the city. We suggest contacting the Department of Planning, Engineering, and Permits to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.