Rowan County Contractor Bond: A Comprehensive Guide

July 6, 2021

Rowan County Contractor Bond

This guide provides information for insurance agents to help their customers obtain a Rowan County Contractor bond

*General contractors with a state license issued by the Licensing Board for General Contractors are exempt from all Rowan County bonding requirements.  

At a Glance:

  • Average Cost: $100 per year
  • Bond Amount: $1,000
  • Who Needs it: Building, plumbing, HVAC, and electrical contractors operating in Rowan County, North Carolina that are billed for their permits on a monthly basis
  • Purpose: To ensure the county will receive compensation for financial harm if the contractor fails to pay all required permit and reinspection fees by the 10th of each month
  • Who Requires the Bond: Rowan County, North Carolina

Background

Rowan County Code of Ordinances 7-106 requires building, plumbing, HVAC, and electrical contractors to register with the county before conducting business. The Rowan County Board of Commissioners enacted the registration requirement to ensure that contractors engage in ethical business practices. To provide financial security for the enforcement of the registration requirement, contractors that choose to be billed monthly for their permits must purchase and maintain a $1,000 surety bond to be eligible for registration.

What is the Purpose of the Rowan County Contractor Bond?

Rowan County requires contractors that are billed monthly for their permits to purchase a surety bond as part of the application process to obtain a registration. The bond ensures that the county will receive compensation for financial harm if the contractor fails to abide by the regulations outlined in Rowan County Code of Ordinances 7-107. Specifically, the bond protects the public if the contractor fails to pay all required permit and reinspection fees by the 10th of each month. In short, the bond is a type of insurance that protects the public if the contractor violates the terms of their registration.

Rowan County Contractor Bond Form

Rowan County Contractor Bond Form

How Can an Insurance Agent Obtain a Rowan County Contractor Surety Bond?

BondExchange makes obtaining a Rowan County Contractor Bond easy. Simply login to your account and use our keyword search to find the “Rowan County” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (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.

Not an agent? Then let us pair you with one!

BX Agent Finder Link

Click the above image to find a BX Agent near you

Is a Credit Check Required for the Rowan County Contractor Bond?

A credit check is not required for the Rowan County Contractor bond. Because the bond is considered relatively low risk, the same low rate is offered to all contractors in the county regardless of their credit history.

How Much Does the Rowan County Contractor Bond Cost?

The Rowan County Contractor bond costs just $100 per year.

Who is Required to Purchase the Bond?

Rowan County requires all building, plumbing, HVAC, and electrical contractors, that choose to be billed for their permits on a monthly basis, to purchase a surety bond as a prerequisite to obtaining a business registration. To paraphrase Rowan County Code of Ordinances 7-108, a contractor is a person that provides construction services as an independent business.

Licensed general contractors are exempt from all Rowan County bonding requirements.

How do Contractors Apply For a Registration in Rowan County?

Contractors in Rowan County must navigate several steps to obtain a registration. Below are the general guidelines, but contractors should refer to the county ordinances for details on the process.

Step 1 – Obtain a State License

North Carolina requires building, plumbing, HVAC, and electrical contractors to obtain a statewide license before conducting business.

    • Building: Only required for building contractors working on projects costing $30,000 or more
    • Plumbing and HVAC: Submit a completed application online here and mail all notarized documents to:

State Board of Examiners of Plumbing
Heating and Fire Sprinkler Contractors
1109 Dresser Court
Raleigh, NC 27609-7302

NC State Board of Examiners of Electrical Contractors
3101 Industrial Drive, Suite 206
Raleigh, NC 27609

Step 2 – Contact the Building Inspections Department

Contractors can apply for a business registration after obtaining the proper state license. To apply for registration, contractors should contact the Building Inspections Department. The Department will walk the contractor through the application process, provide them with any forms that must be submitted, and answer any questions they may have.

Step 3 – Purchase a Surety Bond

Contractors that choose to be billed for their permits on a monthly basis must purchase and maintain a $1,000 surety bond.

How do Rowan County Contractors Apply for a Permit?

Rowan County requires contractors to obtain a permit for every project they undertake. Contractors can submit their completed permit applications, including all required fees, online here. Detailed plans must be submitted for permits on jobs costing $20,000 or more. Permits will expire 6 months from the date of issuance if no work has been completed and will also expire if work is halted for a period of 12 consecutive months.

What are the Insurance Requirements for Contractors in Rowan County?

Rowan County does not require contractors to purchase any form of liability insurance as a prerequisite to obtaining registration or permit. However, contractors with employees may need to purchase workers’ compensation insurance. Contractors that are billed on a monthly basis for their permits must purchase and maintain a $1,000 surety bond.

How Do Rowan County Contractors File Their Bonds?

Contractors should submit their completed bond forms, including the power of attorney, to the Building Inspections Department at the following address:

402 N Main Street
Room 207
Salisbury, NC 28144

The surety bond requires signatures from both the surety company that issues the bond and the contractor. The surety company should include the following information on the bond form:

  • Legal name, county, state, and registration classification of the entity/individual(s) buying the bond
  • Surety company’s name and state of incorporation
  • Date the bond is signed

What Can Rowan County Contractors Do To Avoid Claims Against Their Bonds?

To avoid claims on their bonds, contractors in Rowan County must pay all required permit and inspection fees by the 10th of each month.

What Other Insurance Products Can Agents Offer Rocky Mount Insulation Contractors?

Contractors with employees may need to purchase workers’ compensation insurance. Additionally, most reputable contractors will purchase liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of 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 Rowan County Contractor Customers?

Rowan County unfortunately does not provide a public database of active contractors in the county. We suggest contacting the Building Inspections Department to obtain this information. Additionally, agents can find a complete list of licensed North Carolina general (building) contractors here, licensed plumbing and HVAC contractors here, and licensed electrical contractors here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

2022-10-21T10:08:55-04:00