Commercial Water Service Installation Bond
What Is A Commercial Water Service Installation Bond?
Commercial water service installation bonds are required by state and local governments for construction and plumbing professionals servicing commercial or public properties. Installing commercial water lines encompasses the following:
- Commercial hot taps
- Municipal hot taps
- Commercial fire meters
- Irrigation meters
- Commercial and industrial fire lines
- Commercial and municipal wastewater lines
Each state, county, and municipality has ordinances that must be adhered to and different permitting requirements before work may begin, and this includes being bonded first.
A commercial water service installation bond acts as a legally binding contract between three parties:
- The principal, who is the construction professional being bonded
- The obligee, the entity who is obligating the contractor to be bonded
- The surety, the company that issues the contractor bond and guarantees the contractor’s obligation
There is risk for public and private property damage in the course of work, but the purpose of the bond is not to prevent the plumbing professionals from financial loss resulting from being held liable for these damages.
Surety bond insurance isn’t designed to cover loss and damage like traditional insurance. Commercial water service installation surety is designed to protect the general public by guaranteeing that the bondholder (the plumbing, general contracting, or construction outfit, or individual plumbing professional) will comply with all state and local plumbing and construction codes, as well as the standards for plumbing work outlined in the bond. The government agencies requiring the bond and the residents and visitors of the property are given surety against damages incurred in the course of commercial water service work.
The plumbing professionals who are bonded must comply with the standards of work outlined in the commercial water service installation bond, or be considered in breach of contract and the obligee can make a claim for damages.
Purchasing Your Commercial Water Service Installation Bond
1. Click the Buy Now button.
2. Fill out the easy bond form.
3. Confirm your order and select how you would like your bond documents delivered. Email or regular mail.
4. Pay for your bond.
5. If you chose to have your documents emailed, you will receive them within minutes.
It’s that simple and fast!
Pricing & Terms
Surety bond costs are a percentage of the full bond amount, which is usually determined by your personal credit. Providing industry experience, strong personal credit, and business/personal financials will help lower your bond rate. Reach out for a quote today.
Expediting The Commercial Water Service Installation Surety Bond Application Process
Commercial water service installation bond applications are subject to underwriter review, and depending on the state requiring the bond as well as the bond amount, you may be subject to additional review before approval.
Approval is based on your qualifications to perform commercial water installation, as well as your credit score at the time of application. Having your credit report and plumbing license information handy will help expedite the process.
Our friendly and professional agents can be reached at (817) 590-9725 between 8:30 a.m. – 5:00 p.m. Monday-Friday. You can also reach out to us through our online contact form 24/7, where a surety bond specialist will get back to you as soon as possible.
TMD Surety Bonds strives to make the bond application process as seamless as possible, and our surety experts are happy to answer any questions you have.
How Much Does A Commercial Water Service Installation Bond Cost?
Due to the different regulations and requirements by state, county, and other localities, the cost for a commercial water service installation bond varies. However, the cost is dependent on where the job will take place, as opposed to where the plumbing outfit or individual professional is based. Please contact us for more specific information on where the proposed project will be built.
Your bond premium is based on your credit rating. If you have excellent credit, you can expect to pay 1 percent or less of your bond amount on the standard market. If your personal finances are not as robust, but you are approved, bond premiums will be 2 – 5 percent of the bond amount on the nonstandard market.
Due to the different regulations and requirements by state, county, and other localities, the cost for a commercial water service installation bond varies. However, the cost is dependent on where the job will take place, as opposed to where the plumbing outfit or individual professional is based. Please contact us for more specific information on where the proposed project will be built.
Your bond premium is based on your credit rating. If you have excellent credit, you can expect to pay 1 percent or less of your bond amount on the standard market. If your personal finances are not as robust, but you are approved, bond premiums will be 2 – 5 percent of the bond amount on the nonstandard market.
Bond Purchase Process
1. Find Your Bond
2. Secure Pricing
3. Buy Online
Frequently Asked Questions
The entity requiring the bond (the obligee) will determine whether a bond is required. Bond requirements vary greatly by your occupation and location. However, fidelity bonds are insurance and are usually optional to obtain.
For the most part, yes. Bad credit can increase rates for license and permit bonds and most can also get approved for fidelity bonds regardless of credit. For contract bonds, larger contractors with poor credit can be approved with strong CPA-prepared business financials.
It’s a legally binding contract that you must sign to obtain a surety bond. The agreement guarantees that if you cause bond claims you will pay them in full.
Looking to Get Started or Have Questions?
The bonding process can be confusing and cumbersome. Our surety bond experts are standing by and ready to answer any questions. Let’s get you bonded today!