Ohio Contractor License Bonds

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Why is an Ohio Contractor Bond Required?

Contractor bonds in Ohio ensure that the licensed contractor complies with the applicable licensing, permitting or other rules and regulations defined by the state or local government authority requiring the surety bond. In some cases, the bond may also guarantee tax or other payments to the authority as required. The contractor must comply with building codes, keep accurate books and records, provide reports required by law, and conduct business in accordance with all rules and regulations established by the governing authority. The surety bonds typically protect third parties who sustain financial damages as a result of a contractor’s violation of bond terms. Damaged parties may include customers, suppliers, other individuals, a city, county or the state. The surety bond will hold the city harmless from losses and damage to persons or property due to accident or the want of care or skill on the part of the bonded contractor, in the execution of work contracted, performed, pursued or attempted under the license or registration.

Contractor Bonds And Getting Your Ohio Business License/Registration

In accordance with city codes, the departments of building and zoning or similar authority in cities across the state of Ohio issue licenses and registrations to individual contractors who plan to perform work within the city. Any contractor intending to perform work within the city is typically required to obtain the appropriate license or registration before beginning a job. The purpose of issuing licenses and registrations is to set minimum qualification standards and provide for the safety and welfare of the general public, owners and occupants of buildings and structures within the city. In conjunction with the municipal license or registration, a surety bond is also required in many cases. Below is an overview of common city licensing requirements across the state.

City of Columbus Contractors

General, home improvement, demolition, sewer, water works, fire and other contractor classes must be registered with the City of Columbus and furnish a surety bond to perform the following scopes of work: Construction of all new structures or buildings (excluding accessory structures and garages for existing 1, 2 and 3 family dwellings), Structural additions, alterations or repairs to existing commercial or multi-family dwellings and accessory structures or buildings, Multi-family buildings are defined as any dwelling or building that contains 4 or more dwelling units, Coordinate and manage the modification, alteration, or repair of existing 1, 2 and 3 family dwellings. The General Contractor is required to subcontract all work to City of Columbus licensed Home Improvement, Mechanical, Electrical and Plumbing Contractors that will perform the work or see that the work is properly accomplished under their direct supervision.

City of Cleveland Contractors

Contractors must be bonded, insured and registered to build, repair or rehabilitate homes or other structures in the City of Cleveland. Subject work may involve; Commercial Buildings, Demolition, Driveways, Electrical, Fences, HVAC, Heating and Cooling, New Home Construction, Painting, Plumbing, Pool, Residential 1, 2, and 3 Family, and Solar installation. A surety bond is typically required to accompany the registration for General Contracting, Electrical, Demolition, HVAC, and Plumbing work. All “Service Providers”, essentially utilities and telecoms, are required to annually register with the City of Cleveland, and meet the requirements per City Ordinance. Violation or refusal to comply with the provisions of this ordinance may result in civil action by the City of Cleveland.