Payment of Payroll and Funds Bond - International Brotherhood of Electrical Workers/afl CIO in District of Columbia

Brief Summary

If an IBEW local or its benefit funds have asked for a payroll and funds bond, they are usually holding something up until it arrives. The amount and wording come from the union, so send us their request and the bond can be written to match it.

The Payment of Payroll and Funds bond is posted by an electrical contractor signatory to an agreement with the International Brotherhood of Electrical Workers, AFL-CIO, for work in the District of Columbia. It guarantees the contractor will meet its payroll and pay the fringe benefit fund contributions it owes under that agreement. The union or its funds set the amount and form, so confirm both with them before the bond is issued.

We can help with all District of Columbia bonds!

How to Apply for a Payment of Payroll and Funds Bond:

• Get the written bond request from the IBEW local or the benefit fund office.
• Confirm the bond amount and the exact obligee name they require.
• Ask whether the union or fund uses its own bond form.
• Complete the bond application with the contractor's legal name as it appears on the agreement.
• Pay the premium and deliver the executed bond to the union or fund office.

Detailed Information About the District of Columbia Payment of Payroll and Funds Bond:

Set by the union, not the District

No DC statute or licensing agency sets this bond. It is required by the IBEW, typically the local union with jurisdiction over the work or the benefit funds created under the collective bargaining agreement. The required amount, the bond wording and the named obligee come from that side, and they can vary from one local or agreement to another. Treat the union or fund's written request as the controlling document.

What the bond guarantees

The bond backs two promises: that the contractor will pay its electricians the wages owed under the agreement, and that it will remit the contributions owed to the health, pension and other benefit funds. If the contractor defaults, the union or fund can claim on the bond and the surety pays valid amounts up to the limit. The contractor must then repay the surety, so the bond is credit, not insurance for the contractor.

Who posts it

The signatory electrical contractor is the principal. Contractors newly signing on and those with past delinquencies are commonly asked to post one, but the union or fund decides who must.

Before you apply

Get the required bond amount, the exact obligee name and any required form from the union or fund office. Applying with that request in hand avoids a rider or reissue later. The surety prices the bond after reviewing the contractor's credit and financial statements.

Eligibility and Requirements for a District of Columbia Payment of Payroll and Funds Bond:

• Bond amount set by the union or benefit fund, not by statute.
• Obligee named exactly as the union or fund specifies.
• Principal name matching the signatory contractor on the collective bargaining agreement.
• Credit and financial review of the contractor and its owners by the surety.

District of Columbia Payment of Payroll and Funds Bond FAQs:

Official and Additional Resources for the District of Columbia Payment of Payroll and Funds Bond: