What is a Commercial Water/Wastewater 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.
How does a Commercial Water/Wastewater Service Installation Bond work?
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.
How to Apply
- Click the Buy Now button.
- Fill out the easy bond form.
- Confirm your order and select how you would like your bond documents delivered. Email or regular mail.Â
- Pay for your bond.Â
- If you chose to have your documents emailed, you will receive them within minutes.Â
It’s that simple and fast!
Commercial Water/Wastewater Service Installation Bond Details
Bond Purchase Process
1. Find Your Bond
2. Secure Pricing
3. Buy Online
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Frequently Asked Questions
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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!