Surety Bond Encyclopedia

Contractor ($10,000) Bond - Metropolitan District, CT in Connecticut

Brief Summary

The Metropolitan District will not let a contractor install a water service or a sewer lateral in its system until the contractor is licensed, bonded and insured. The $10,000 bond is the piece that gets you on MDC's eligible list, and it is a small, fast bond to place for a contractor with a clean record.

The Metropolitan District (MDC), the regional water and sewer utility for the Hartford area, requires a licensed, bonded and insured contractor to install water services and to install or repair sewer laterals. This $10,000 contractor bond, with MDC as obligee, is filed with MDC Utility Services along with the contractor's insurance information.

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How to Apply for a Contractor ($10,000) Bond:

  • Hold the Connecticut license needed for the work, with a P-1 or P-7 licensee on staff.
  • Complete MDC's Application for Eligibility Form signed by the contractor and the licensee.
  • Purchase the $10,000 contractor bond naming The Metropolitan District as obligee.
  • Submit the bond and insurance information to MDC Utility Services.
  • Pay the tap fee and schedule the water tap with MDC before installing the service.

Detailed Information About the Connecticut Contractor ($10,000) Bond:

This is not the developer's performance bond

Contractors often confuse two MDC bonds. The $10,000 contractor bond on this page qualifies a contractor to do house connection work, meaning water services and sewer laterals. A developer building new mains under a Developer's Permit-Agreement may separately be required to furnish a performance bond for completion and maintenance of the water main, in an amount not less than the estimated construction cost. The contractor bond does not satisfy that requirement.

Who needs it

MDC's Water and Sewer Permits page states that MDC requires a licensed, bonded and insured contractor to install the water service, with the contractor paying the tap fee and scheduling the tap, which MDC performs. The same standard applies to installing or repairing a sewer lateral on private property.

Eligibility paperwork

MDC's Developer's Permit-Agreement Guidance Manual directs contractors to submit bond and insurance information to Utility Services for water and sewer house connections. The contractor also completes MDC's Application for Eligibility Form for construction of sewer laterals and water main service connections, signed by both the contractor and the P-1 or P-7 licensee. Contractors must hold all applicable licenses and certificates and be approved by the District before any work begins.

Before you buy

Confirm the current bond form and filing steps with MDC Utility Services before the bond is issued, so the bond names MDC exactly as it requires.

Eligibility and Requirements for a Connecticut Contractor ($10,000) Bond:

  • Bond amount of $10,000 with The Metropolitan District as obligee.
  • Contractor licensed, bonded and insured before any water service or sewer lateral work.
  • District approval of the contractor before work begins.
  • Contractor's legal business name on the bond matching the eligibility form.
  • Owner credit review, which mainly affects the premium at this bond size.

Connecticut Contractor ($10,000) Bond FAQs:

Does this bond cover a developer's main extension?

No. Work under a Developer's Permit-Agreement can require a separate performance bond of not less than the estimated construction cost. The $10,000 bond qualifies a contractor for house connection work.

What work requires the bond?

MDC requires a licensed, bonded and insured contractor to install water services and to install or repair sewer laterals on private property within its system.

Who has to sign the eligibility form?

Both the contractor and the P-1 or P-7 licensee sign MDC's Application for Eligibility Form for sewer laterals and water service connections.

What determines the premium?

The surety looks mainly at the owner's personal credit and the company's history. There is no single published rate.

Official and Additional Resources for the Connecticut Contractor ($10,000) Bond:

All Connecticut Contractor bonds · All Metropolitan District, CT bonds · All Connecticut surety bonds