Wage & Fringe Benefits Bond - Local Union No. 74 Plumbing and Pipefitting Industry in Delaware

Brief Summary

Signing a collective bargaining agreement with Local Union No. 74 can mean posting a wage and fringe benefit bond before your crews go to work. A surety bond meets that requirement for an annual premium instead of a cash deposit that sits idle for the life of the agreement.

This bond is posted by a plumbing or pipefitting contractor working under an agreement with Local Union No. 74 Plumbing and Pipefitting Industry in Delaware. It guarantees that the contractor will pay the wages and make the fringe benefit contributions it owes under that agreement. The requirement comes from the union agreement, not from a state agency, so the amount and bond form are set by the union side.

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How to Apply for a Wage & Fringe Benefits Bond:

• Get the required bond amount and obligee name from Local 74 or its benefit fund office.
• Ask whether the union requires its own bond form.
• Apply for the bond using the contractor's exact legal name as it appears on the agreement.
• Pay the premium and receive the executed bond.
• Deliver the bond to the union or fund office before work begins.
• Keep the bond in force for as long as the agreement requires.

Detailed Information About the Delaware Wage & Fringe Benefits Bond:

This is a union requirement, not a state license bond

Contractors often look for this bond on a Delaware agency website and come up empty. That is because the obligation comes from the collective bargaining agreement with Local Union No. 74 Plumbing and Pipefitting Industry. The union, or the benefit funds named in the agreement, sets the bond amount and the form it must be written on.

What the bond guarantees

The contractor is the principal. The bond guarantees that the contractor will pay its covered employees the wages due and make the fringe benefit contributions the agreement requires. If the contractor falls behind or goes out of business owing money, a valid claim can be paid from the bond, and the contractor must repay the surety.

Before you order the bond

Ask Local 74 or its benefit fund office for the exact bond amount, the name of the obligee to show on the bond, and whether they require their own bond form. Confirm those details in writing before the bond is issued.

What it costs

You pay an annual premium that is a fraction of the bond amount. The surety sets the rate after reviewing the owners' credit and the company's financial condition.

Eligibility and Requirements for a Delaware Wage & Fringe Benefits Bond:

• Bond amount as set by the union agreement or fund office.
• Obligee as named by Local Union No. 74 or its benefit funds.
• Contractor legal name on the bond matching the signed agreement.
• Owner and company credit review by the surety.

Delaware Wage & Fringe Benefits Bond FAQs:

Official and Additional Resources for the Delaware Wage & Fringe Benefits Bond: