Mecklenburg County Land Use and Construction Bond: A Comprehensive Guide
This guide provides information for insurance agents to help contractors on Mecklenburg County (NC) Land Use Construction Contractor bonds
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $2,000
- Who Needs It: All builders, electricians, plumbers, and mechanics operating in Mecklenburg County
- Purpose: To ensure the county will receive compensation for any damages should the permit holder fail to comply with permit regulations and pay permit fees
- Who Regulates Land Use and Construction Permits in Mecklenburg County: The Mecklenburg County Land Use and Environmental Services (MCLUES)
Background
North Carolina General Statute 160D-1110 requires all builders, electricians, plumbers, and mechanics to obtain a permit with their local municipality prior to engaging in contract work. The North Carolina legislature enacted permit laws and regulations to ensure that contractors engage in ethical business practices. In order to provide financial security for the enforcement of the permit law, contractors in Mecklenburg County must post a cash deposit, obtain a letter of credit, or purchase and maintain a $2,000 land use and construction surety bond to be eligible for a permit.
What is the Purpose of the Mecklenburg County Land Use Surety Construction Bond?
Mecklenburg county requires builders, electricians, plumbers, and mechanics to purchase the Land Use and Construction bond as part of the application process to open a permitting account. The bond ensures that the county will receive compensation for financial harm if the contractor fails to comply with land development rules, ordinances, regulations, or fee payments.
In short, the bond is a type of insurance that protects the county if the contractor fails to pay fees or follow the regulations.
How Can an Insurance Agent Obtain a Mecklenburg County Land Use and Construction Surety Bond?
BondExchange makes obtaining a Mecklenburg County Land Use and Construction Surety Bond easy. Simply login to your account and use our keyword search to find the “Mecklenburg” bond in our database. Don’t have a login? Gain access 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.
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Is a Credit Check Required for the Mecklenburg County Land Use and Construction Bond?
No, credit checks are not required for the Mecklenburg County Land Use and Construction bond.
How Much Does the Mecklenburg County Land Use and Construction Surety Bond Cost?
The $2,000 Mecklenburg County Land Use and Construction surety bond costs either $100 per year or $10 per month.
Who is Required to Purchase a Mecklenburg County Land Use and Construction Surety Bond?
Contractors or homeowners pulling permits for construction projects in Mecklenburg County are required to purchase the Land Use and Construction Surety bond prior to beginning any work. The bond ensures that the permit holder will comply with the permit regulations and pay the permit fees on time.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Contractors Apply for a Permit in Mecklenburg County?
Contractors in Mecklenburg County must complete certain steps to obtain a permit. Details regarding the Permit Application process are listed below:
Step 1: Determine the Class Type
There are two class types when it comes to Mecklenburg County permits. Permits are grouped by project type and are paid for by the contractor/homeowner. Separate permits are required for building, electrical, mechanical, and plumbing work.
- Commercial Work – Building, Electrical, Mechanical, and Plumbing
- Residential Work – Homeowner
***Permits for residential work may not be required on projects less than $15,000. Click here to determine if a permit is required.***
Step 2: Determine the Permit type
Mecklenburg County requires contractors to obtain specific permits corresponding to the nature of the project. Keep in mind that contractors will need to acquire a permit for each job they wish to perform. Below are the different types of Mecklenburg County Contractor Permits:
- Homeowner Internet Permitting (HIP) – Required for homeowners doing their own work
- Trade Internet Permitting (TIP) – Enter data for projects that don’t require a building fee, pay the permit fee, and print permits.
- Other Permits Not Requiring Permits – For contractor-driven projects
- Commercial Single-Trade Permits – For minor projects which involve only one type of trade
- Demolition & Move-On/Move-Off Permits -required for interior and total demolition
- Special Events Permits – required for large groups of people in public space
- Sign Permits – For public and traffic safety signs
***Each permit has specific requirements associated with it. Applicants must meet the minimum requirements in order to obtain the specified permit. Click on the permit to view more information about the permit requirements.***
Step 3: Create an Account on Mecklenburg County Web Permit Dashboard
Mecklenburg County’s web permit dashboard can be found here. Create an account as either a Contractor or Homeowner and use the online service to submit permit requests, file inspections, view permits/inspections, and look at account details.
Step 4: Complete the Permit Application
4a. Homeowner/Contractor chooses to complete the application online or in-person
4b. Fill out the Application
4c. Determine if plan review is required
Dependent on the project type, a plan review may be required. Mecklenburg County charges a Plan review fee of $45.00 per trade involved
If a plan review is required the principal will need to specify which of the following plan types will be needed:
***Click on the plan type for more information on how to further submit a plan review.***
If a plan review is not required Mecklenburg County requests the contractor contact the Code Info & Resource Center (CIRC) for further assistance
4d. Assess if there needs to be a zoning assessment
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- Zoning assessment and permit holds must be completed before a permit is issued
4e. Upload documents to the dashboard if needed
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- These documents would be zoning plot planes, engineering letters, etc.
4f. Review and submit
Step 5: Pay the Permit Fees
Permit payment will be completed through the Mecklenburg County dashboard. Payment for permits will be required within 7 days of the permit being issued or the permit will be automatically terminated.
The specific fee amount will vary depending on the type of project being performed. Contractors can find a full list of permit fees here, and can access a fee estimator here.
Step 6: Purchase a Surety Bond
Contractors must post a cash deposit, obtain a letter of credit, or purchase and maintain a $2,000 land use and construction surety bond
Do Contractors Need to Renew Their Permits?
All Mecklenburg County permits will last for the duration of the specific project the permit was obtained for. Contractors will not need to renew permits for jobs already completed, they will however need to apply for a permit for every project they undertake.
What Are the Insurance Requirements for Mecklenburg County Contractors?
Mecklenburg County requires contractors to obtain specific forms of liability insurance for the scope of work to be performed. Contractors must file a $2,000 Land Use and Construction Surety Bond. These specific insurance requirements are featured below:
- Automobile – minimum limit of $1,000,000
- Commercial Liability – minimum limit of $1,000,000
- Workers Comp – minimum limit of $100,000 for each accident and disease each employee and $500,000 disease policy limit
- Contractor Pollution Liability – minimum limit of $1,000,000
How Do Mecklenburg County Contractors File Their Bond?
Contractors should scan the completed bond form and submit it online via email to [email protected]. The Land Use and Construction permit bond require signatures from both the surety company that issues the bond and the contractor. Mecklenburg County will accept a copy of the bond for up to five business days. After this period, the original bond will need to be submitted to their office at the following address:
Mecklenburg County Code Enforcement
Attn: Revenue Collections
2145 Suttle Avenue
Charlotte, NC 28208
The surety company should include the following information on the bond form:
- The legal name of entity/individual(s) buying the bond
- Surety company’s name
- State contractor license number
- Bond number
- Bond amount
- Date the bond is signed
- Date the bond goes into effect
- Bond type
- Date the bond expires
- Two witness signatures for the licensee
Instructions on how to complete the bond form can be found here.
What Can Contractors Do to Avoid Claims Against the Mecklenburg County Land Use and Construction Surety Bond?
To avoid claims on the Land Use and Construction Surety Bond, contractors must follow all license and permit regulations in the state. Most importantly follow the specifications below.
- Pay all permitting fees on time and in full
- Follow all contractor guidelines and regulations
What Other Insurance Products Can Agents Offer Contractors in Mecklenburg County?
Mecklenburg County requires contractors to obtain liability insurance corresponding with the type of permit being applied for. Bonds are our only business at BondExchange, so we do not issue liability 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 Construction Contractors in Mecklenburg County?
Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
