What is a Tennessee City of Hendersonville Contractor License Bond?
The City of Hendersonville requires contractors of all classifications to obtain a City of Hendersonville Contractor License Bond. This surety bond is required by the local government as a condition of granting a permit to begin work on a project within the city.
As with other surety bonds, this bond is a contract involving three parties: the principal (contractor), the obligee (City of Hendersonville), and the surety company. The City of Hendersonville requires this bond to ensure that the contractor adheres to local laws and licensing regulations and that any authorized construction conducted by the principal meets code regulations.
If an individual files a valid claim against the bond, the surety may compensate them up to the full amount of the bond. Claims may be the result of fraudulent or unethical business practices, failure on the part of the principal to comply with their licensing laws, and more.
Surety bonds differ from typical insurance policies because the principal must reimburse the surety company in the event of a claim.
Who has to get this bond?
The City of Hendersonville requires all contractors to obtain a Hendersonville TN Contractor Permit Bond before permits can be issued to work in the city. This applies to all contractors, regardless of their classification as general or specialty contractors or the size of the construction project.
How much does a City of Hendersonville Contractor License Bond cost?
Depending on the contractor's classification and project size, the bond amount for a City of Hendersonville Contractor License Bond varies.
A minimum of a $10,000 permit bond is required for projects under $25,000, which can be purchased online, instantly at EZ Surety Bonds for only $100. The $10,000 bond does not require a credit check.
However, for projects of $25,000 and over, a minimum bond amount of $50,000 is required. The $50,000 bond amount also applies to house-moving contractors.
As a gas, mechanical, plumbing, pool, or excavation contractor, your bond amount will be $40,000 unless your project exceeds $25,000. In this case, you will need a $50,000 bond amount.
For bond amounts of $40,000 and greater, the cost varies depending on the contractor’s qualifications, as well as their credit and financial standing. It is important to note that this soft credit check will not negatively impact your credit score.
Applicants with excellent credit may pay as little as 0.5% to 1% of the bond amount. Even if you have nonstandard credit, we encourage you to apply for your free quote. At EZ Surety Bonds, we work with a variety of sureties to find you the best quote available.
Obligee Information
The City of Hendersonville Building and Codes Department is the entity that requires the City of Hendersonville Contractor License Bond, also called the obligee. Here is their contact information:
City of Hendersonville, Tennessee Building and Codes Department
101 Maple Drive North
Hendersonville, TN 37075
Phone: (615) 822-3802
Fax: (615) 264-5336
How to obtain your City of Hendersonville Contractor License Bond
No matter what type of bond you require, EZ Surety Bonds offers fast and easy bonding services. In order to obtain your City of Hendersonville Contractor License Bond, simply fill out our quick online application and one of our friendly surety experts will contact you regarding your free quote within 24 hours.
We're more than happy to help! Feel free to contact us at bonds@southcoastsurety.com or 1-800-361-1720 if you have any further questions.
Frequently Asked Questions
What are the City of Hendersonville Contractor License permit requirements?
Contractors seeking to operate in the City of Hendersonville are required to provide the following:
- Hendersonville TN Contractor Permit Bond. ($10K/$40K/$50K bond amount based on contractor classification and project size).
- A State License and/or a State Contractors License when applicable. A project amounting to $25,000 or more requires a license. Plumbing work costing less than $25,000 requires a Limited License Plumber (LLP). House-moving contractors are required to have a business license.
- Proof of workman’s compensation insurance or proof of exemption.
It should be noted that the City of Hendersonville is one of several cities and counties throughout Tennessee that enforce its own local surety bond requirements. This requirement is separate from any state licensing requirements issued by the Tennessee Department of Commerce and Insurance Board. Always ensure you are adhering to both state and local license and bonding regulations.
How much is a City of Hendersonville Contractor License Bond?
The bond amount for a City of Hendersonville Contractor License Bond varies from $10,000 to $40,000 to $50,000, based on the contractor classification and the size of the project.
Our website offers the Hendersonville, TN $10,000 CLB for $100, which can be purchased instantly on our website. These bonds do not require a credit check. However, premium rates for bond amounts of $40,000 and greater depend on the contractor’s qualifications, credit history, and financial standing.
Applicants with solid finances and experience may receive quotes starting at 0.5% to 1% of the bond amount. Apply today for your free quote!
After I purchase my City of Hendersonville Contractor License Bond, what do I do?
After you purchase your bond, we will mail the original document to you. Most obligees require you to file the original bond with them (usually signed by the principal), although some obligees may approve of an electronic copy. Every obligee has its own unique filing requirement, so be sure to confirm your obligee's filing requirements before doing anything with your bond.
