Surety Bond Encyclopedia

Plumbing Contractor ($5,000) Bond - City of Durango, CO in Colorado

Brief Summary

Durango treats a state master plumber license as only half the job. To work inside city limits you also need a city business license and a $5,000 bond that protects the city and the public from damage tied to your plumbing work. You pay a small yearly premium instead of putting up $5,000 in cash.

Under Durango Municipal Code Section 13-89, every master plumber working in the City of Durango must hold a Colorado master plumber license, a city business license and a $5,000 bond in favor of the city. Specialty licenses and bonds under Chapter 13 expire December 31 each year, so the bond has to stay current with each annual renewal.

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How to Apply for a Plumbing Contractor ($5,000) Bond:

  • Hold a current Colorado master plumber license.
  • Apply for a City of Durango business license through MUNIRevs.
  • Buy the $5,000 bond naming the City of Durango as obligee.
  • Add the $5,000 excavation bond under Section 13-92 if you will dig in the public right of way or on city property.
  • Confirm the bond form and filing steps with the City of Durango.
  • Renew the license and keep the bond in force each year, since specialty licenses expire December 31.

Detailed Information About the Colorado Plumbing Contractor ($5,000) Bond:

Who has to post it

Section 13-89 of the Durango Municipal Code says a plumber with a master plumber license from the state and a business license from the city is qualified to do plumbing work in Durango, and that all master plumbers must execute a bond of $5,000. Section 6-71 adds that no one may work as a journeyman or master plumber in the city without being licensed by the city, using state law to judge qualifications. Homeowners doing plumbing work in their own homes are exempt from the licensing rule.

What the bond covers

The code spells out three conditions. The plumber must indemnify and hold the city, its officers, agents and employees harmless from claims for damage or injury to any person or property in any street, alley, sidewalk or other place, public or private, arising from the licensed work on the waterworks or sewer system. The plumber must restore any street, alley, sidewalk or other place to the condition it was in when the permitted work began. The plumber must also meet every condition the building inspector sets for a plumbing permit.

The city reserves the right to revoke the business license of a plumber who does not comply.

A second bond some plumbers miss

If your work includes digging in a public right of way or on city property, Section 13-92 separately requires a $5,000 excavation bond before the business license is issued. Sewer and water service line work often falls into this category.

Renewal and filing

Section 13-32 says all specialty licenses under this article expire December 31 each year. Durango processes business licenses through its MUNIRevs online portal, with a one-time $30 application processing fee plus an annual fee based on the number of employees in the city. Confirm the current bond form and where to file it with the City of Durango before the bond is issued.

Premium

The premium is a percentage of the $5,000 bond amount, set by the surety after reviewing the owner's credit and business history.

Eligibility and Requirements for a Colorado Plumbing Contractor ($5,000) Bond:

  • Obligee: City of Durango.
  • Bond amount: $5,000 under Durango Municipal Code 13-89.
  • State master plumber license plus a city business license.
  • Indemnity to the city and restoration of streets, alleys and sidewalks disturbed by the work.
  • Compliance with building inspector conditions on plumbing permits.

Colorado Plumbing Contractor ($5,000) Bond FAQs:

My state master plumber license is current. Do I still need this bond?

Yes. Section 13-89 requires both the state master license and a city business license, and every master plumber must execute the $5,000 bond to work in Durango.

Does the bond expire?

Specialty licenses under Chapter 13, Article III expire December 31 each year. Keep the bond active through each renewal so your business license stays valid.

Do I need a separate excavation bond?

If you excavate in a public right of way or on city owned property, Section 13-92 requires a separate $5,000 excavation bond before the business license is issued.

Can a homeowner do their own plumbing without the bond?

Section 6-71 says the plumber licensing rule does not stop a homeowner from doing plumbing work in their own home. The bond applies to licensed master plumbers.

How much will the bond cost?

You pay a yearly premium that is a percentage of $5,000. The surety sets the rate mainly from the owner's credit and business history.

Official and Additional Resources for the Colorado Plumbing Contractor ($5,000) Bond:

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