What is the Memphis and Shelby County Contractor License Bond?
Contractors within Memphis and Shelby County in Tennessee must be licensed by the Memphis and Shelby County Office of Construction Code Enforcement. Part of the licensing requirements include obtaining a Memphis and Shelby County Contractor License Bond (CLB). The bond ensures that the contractor will adhere to their licensing laws and make all necessary payments for taxes and fees.
Like other surety bonds, the Memphis and Shelby County Contractor License Bond is a contract involving three parties: the principal (the contractor), the obligee (Memphis and Shelby County), and the surety company. The surety guarantees the obligee that any authorized work performed by the licensed and bonded principal complies with all Tennessee state laws and Memphis and Shelby County building codes.
In the event that the principal fails to meet their obligations or operates fraudulently, the injured party may file a claim against the principal’s bond. After an investigation into the validity of the claim, the surety may compensate the injured party up to the full bond amount. Claims may be made related to defects in construction, physical harm, failure to comply with contract requirements, fraud, and more.
Unlike an insurance policy, a surety bond requires the principal to reimburse the surety company for all claims paid out, plus additional fees and expenses the surety incurred while investigating the claim.
Who has to get this bond?
All contractors applying for their local Memphis/Shelby County contractor license must obtain a Memphis and Shelby County CLB. If you plan to bid, negotiate a price, or offer to take on projects that are worth $25,000 or more, you need to have a contractor's license. States and local municipalities often have separate license and bonding requirements for contractors. Be sure to meet the requirements of all regulatory agencies in which you will be operating.
The State Contractor's Licensing Law mandates that contractors must have the appropriate license issued by the State of Tennessee Licensing Board. Once they have obtained this license, contractors may acquire a Memphis and Shelby County Business License.
These contractors must register their licenses with Memphis and Shelby County by paying a registration fee and providing a surety bond. However, there are exceptions for those working exclusively in disciplines regulated by the State Alarm Board.
How much does a Memphis and Shelby County Contractor License Bond cost?
The Memphis and Shelby County, Tennessee Contractor License Bond requires a bond amount of $25,000. Fortunately, you do not have to pay the full bond amount in order to obtain this bond. Purchase your bond today for a premium as low as $250.
Unlike many other contractor license bonds, this bond typically does not require a credit check.
Obligee Information
The obligee, or the entity requiring the Memphis and Shelby County Contractor License Bond, is the Memphis and Shelby County Office of Construction Code Enforcement. Here is their contact information:
Memphis and Shelby County
Office of Construction Code Enforcement
6465 Mullins Station Road
Memphis, Tennessee 38134
Phone: (901) 222-8300
How to get your Memphis and Shelby County Contractor License Bond
At EZ Surety Bonds, you can get the bond you need fast and hassle-free, no matter what type of bond you require. To get your Memphis and Shelby County Contractor License Bond, simply fill out our quick online form. After submitting your payment, we will mail the original bond document to you so you can file it with the obligee.
Our friendly surety experts are always happy to assist. If you have any questions, feel free to contact us at bonds@southcoastsurety.com or 1-800-361-1720.
Frequently Asked Questions
How do I apply for a Memphis and Shelby County Contractor License?
To obtain a Memphis and Shelby County license, you must meet the following requirements and gather the required documents below:
- Complete Contractor Registration Application
- Financial Statement
- Letter(s) of Reference and Proof of Insurance
- Pay a $50 registration fee (as of 2023)
- Memphis and Shelby County, Tennessee Contractor License Bond
- A current copy of the Memphis and Shelby County business tax license
- All individuals (with photos) listed on the application
- Any person whose signature is required for a permit must have a notarized letter of limited power of attorney
As mentioned, before obtaining a Memphis & Shelby County Business License, contractors must be licensed by the State of Tennessee Licensing Board.
How much is a Memphis and Shelby County Contractor Bond?
The Memphis and Shelby County Contractor License Bond requires a bond amount of $25,000. You can get this bond for as low as $250, no credit check required. Get your bond today by completing our website's quick online application.
After I purchase my Memphis and Shelby County Contractor Bond, what do I do?
After you purchase the 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. Make sure to confirm your obligee's filing requirements prior to signing or sending the bond to them.
