Surety Bond Encyclopedia

Wage & Fringe Benefits ($25,000) Bond - Local Union No. 483 Sprinkler Fitters and Apprentices in California

Brief Summary

Sprinkler Fitters Local 483 asks signatory fire sprinkler contractors to back their wage and fringe obligations with a surety bond furnished to the Local Union. A bond meets that condition without tying up cash. This page covers the $25,000 version, so check your figure first, because the current NFSA agreement sets its own tiers by monthly reportable hours.

Article 28 of the agreement between the National Fire Sprinkler Association and Sprinkler Fitters and Apprentices Local Union No. 483, in force August 1, 2024 through July 31, 2030, requires each contractor party to furnish the Local Union a surety bond that assures payment of wages and all fringe contributions. That article lists $100,000 for up to 2,000 reportable hours per month and $250,000 for more than 2,000. This page sells the $25,000 bond, so confirm with Local 483 that $25,000 is the amount it has set for your firm before the bond is issued.

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How to Apply for a Wage & Fringe Benefits ($25,000) Bond:

  • Ask Local 483 which bond amount applies to your firm and get the figure in writing before ordering.
  • Use the contractor's exact legal name as it appears on the signed agreement.
  • Name Sprinkler Fitters and Apprentices Local Union No. 483 as obligee unless the Local gives other wording.
  • Ask whether the Local has its own bond form, and use it if it does.
  • Complete the bond application with owner and company information for underwriting.
  • Deliver the signed bond to Local 483 and keep a copy with your agreement file.

Detailed Information About the California Wage & Fringe Benefits ($25,000) Bond:

Check the amount before you order

Most contractors expect one flat figure. Article 28 of the NFSA agreement with Local 483 uses two tiers based on reportable hours: $100,000 for up to 2,000 reportable hours per month and $250,000 for more than 2,000 reportable hours per month. The bond on this page is written at $25,000. Ask Local 483 which amount it has set for your firm and your agreement, get it in writing, and order the bond that matches before it is issued.

Who posts it and who receives it

The contractor signs as principal. Article 28 says the bond is furnished to the Local Union, so Sprinkler Fitters and Apprentices Local Union No. 483 is the obligee unless the Local gives you different wording. The bond assures payment of wages and all fringe contributions required by the agreement. Local 483 covers fire protection work in Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano and Sonoma counties.

What the bond backs

The fringe contributions go to funds named in the agreement, including the Sprinkler Fitters Local 483 Journeyman and Apprenticeship Training Fund, the Health and Welfare Fund, the National Automatic Sprinkler Industry Pension Fund, the West Coast Automatic Sprinkler Industry Supplemental Defined Contribution Pension Fund and the National Fire Sprinkler Industry Promotion Fund. Article 19 lets the Union remove employees from a contractor's work after the funds verify a delinquency and at least 24 hours notice is given, and the contractor then owes each removed worker 16 hours of pay on top of time worked that day. Article 18 adds a 10 percent penalty on contributions not received by the first Monday of the month following the due date.

The federal law behind a claim

Under ERISA, 29 U.S.C. 1145, an employer bound by a collective bargaining agreement must make contributions on the terms of that agreement. When a plan sues and wins, 29 U.S.C. 1132(g)(2) awards the unpaid contributions, interest, the greater of a second interest amount or the plan's liquidated damages, and reasonable attorney fees and costs. The bond gives the Local a source to collect from when a contractor cannot pay.

Eligibility and Requirements for a California Wage & Fringe Benefits ($25,000) Bond:

  • Surety bond furnished to the Local Union under Article 28 of the NFSA and Local 483 agreement.
  • Bond condition: payment of wages and all fringe contributions required by the agreement.
  • Article 28 tiers: $100,000 for up to 2,000 reportable hours per month, $250,000 for more than 2,000.
  • Bond amount and form acceptable to Local 483.
  • Timely contributions to the training, health and welfare, pension, supplemental pension and industry promotion funds named in the agreement.

California Wage & Fringe Benefits ($25,000) Bond FAQs:

Is $25,000 the right amount for my company?

Article 28 of the 2024 through 2030 NFSA agreement lists $100,000 for up to 2,000 reportable hours per month and $250,000 for more than 2,000. Local 483 decides what it accepts from your firm, so confirm the figure with the Local and order the bond that matches it.

Who is the obligee?

Article 28 says the contractor furnishes the bond to the Local Union. Name Sprinkler Fitters and Apprentices Local Union No. 483 unless the Local gives you different wording.

What does the bond guarantee?

Payment of wages and all fringe contributions owed under the agreement. That includes the training, health and welfare, pension, supplemental pension and industry promotion funds the agreement names.

What happens if contributions are late?

Once the funds verify a delinquency, the Union can remove employees from the job with at least 24 hours notice, and the contractor owes each removed worker 16 hours of pay plus time worked that day. Contributions received after the first Monday of the month following the due date carry a 10 percent penalty.

What area does Local 483 cover?

Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano and Sonoma counties, for fire sprinkler and fire protection work.

How is the premium set?

The surety looks at the bond amount, the owner's credit, and the company's finances and payment history. You get a quote after the application is underwritten.

Official and Additional Resources for the California Wage & Fringe Benefits ($25,000) Bond:

All Local Union No. 483 Sprinkler Fitters and Apprentices bonds · All California surety bonds