Getting your contractor license in River Forest is a straightforward process. And this short post will highlight the major steps and explain the ones that might be new to you.
For example, one of the steps is getting bonded and if this is your first time getting licensed in Illinois, you may be unfamiliar with surety bonds. Plus there are some detailed steps depending on your license classification which you'll learn about.
Step 1 - Complete The Application
Obviously, you'll have to complete the application. This is done in an online portal and an application must be completed for a contractor license or a permit. Permits will be completed on a job to job basis.
However if you're a property owner doing work that requires a permit, you will not be required to purchase a surety bond. More on that in the section below.
There are specific forms required by electricians, roofers, waste disposal firms and pesticide applicators have a separate application to complete.
You can find a full list of applications with the specific instructions here.
Roofers
There is a license for Illinois roofing contractors managed at the state level. You will need to provide a copy of this license when you submit your application for River Forest.
And for any job that is non-structural, you will need to apply for the local building permit and provide the structure drawings. Non-structural jobs only need an express permit.
Keep in mind, there is an Illinois roofing surety bond requirement that is separate from the River Forest contractor surety bond you'll learn about below.
Plumbers
Plumbers in River Forest are not required to have a license. However, they are required to obtain a permit for many of the specific services they provide. Here is a complete list.
Just like roofers, there is an Illinois plumbing surety bond required by the state.
In River Forest, if you're doing excavation or sewer/drain work you will need to purchase a $25,000 surety bond. Again, this will be explained below.
The surety bond section below applies to this bond requirement.
Waste Disposal And Pesticide Applicators
Both of these license classifications have a different application to complete. Plus if you're a pesticide applicator, you must have at least one employee that has their state license and active $50,000 surety bond.
Step 2 - The Contractor Surety Bond Requirement
Surety bonds are a common requirement for contractors. You'll likely have to get many different contractor surety bonds over the course of your career.
A surety bond is a legal contract you purchase as a financially backed promise that you will:
- Follow all laws and building regulations in the state and River Forest
- Conduct projects with your customers with fair and ethical business practices
Bottom line, you're required to purchase a surety bond for the protection of your customers, holding you accountable to the promises you make as a licensed professional.
River Forest Contractor Bond Amounts
All contractor licenses in River Forest are required to purchase a surety bond except:
- General contractors
- Plumbers (unless you need the state bond and/or you're doing excavation or sewer/drain work)
River Forest requires a contractor surety bond in the amount of $25,000.
This $25,000 amount is the available compensation a customer has if they are purposefully and financially harmed by a licensed contractor.
What Does a Surety Bond Protect Against?
Again, the surety bond is protection for your customers. It's used as the only method the city has to hold contractors accountable.
It's unfortunate, but every year there will be a small number of contractors who purposefully and financially harm a customer to make more or steal money. Examples of these actions can include:
- Failing to complete a project
- Not starting a project after collecting a deposit
- Swapping out materials on a project to save money
- Refusing to pay subcontractors for work completed
If a customer or a contractor who is subcontracted is harmed by a contractor, they can make a claim against the $25,000 surety bond for financial compensation.
Any one claim or the sum of multiple claims is capped at the $25,000 bond amount.
This is exactly how the state surety bonds work as well for roofers and plumbers.
How Much Does The Surety Bond Cost?
Typically most contractor bonds require the personal credit of the contractor business owner or owners as the primary factor that will determine the price.
However for local city bonds like those required by River Forest, we are able to get you a low fixed price with no credit check required.
We are Surety Bonds Direct, a specialized surety agency. We work with the highest A-rated sureties which allows us to find the lowest possible price and help our customers purchase a surety bond quickly.
The pricing for this $25,000 will be 1% to 1.8% of the bond amount.
You can get your exact pricing today by completing an online quote request or calling a bond specialist at 1-800-608-9950.
Step 3: Insurance Requirements
River Forest requires the following liability insurance coverage:
- $1 million per occurrence in general liability
- $2 million in general aggregate
If you have employees working for you, you'll need to show proof of your workers compensation insurance policy. And if you have no employees, you'll need to submit a waiver with your contractor license application.
Step 4: Submit and Send In Required Paperwork
Once you submit your application online, you will also need to submit the required paperwork like:
- A physical copy of your surety bond
- Additional applications for your specific license classification
- Proof of your state roofing, electrician, and/or pesticide applicator license if applicable to you
This completes the application process. From this point forward, you'll only need to apply for the required permits on a job per job basis.
It's likely you'll perform work in surrounding cities and counties. Each of these may have their own licensing and bonding requirements. When you need to secure your surety bond quickly and ensure you pay the lowest price, we can help you accomplish that.
You can get your exact pricing today by completing an online quote request or calling a bond specialist at 1-800-608-9950.
