Water and Wastewater Maintenance Warranty Bond - Clay County, FL in Florida

Brief Summary

This bond is what lets a developer or utility contractor hand new water and wastewater lines over to the utility in Clay County without holding back cash for the warranty period. The surety stands behind your workmanship after acceptance, so your money stays in the next project.

In Clay County, Florida, new potable water, reclaimed water and wastewater facilities built by developers are typically turned over to the Clay County Utility Authority, which then owns, operates and maintains them. A maintenance warranty bond guarantees that the developer or contractor will repair defects in materials and workmanship that show up during the warranty period after the utility accepts the system. Confirm the required amount, warranty term and bond form with the Clay County Utility Authority before the bond is issued.

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How to Apply for a Water and Wastewater Maintenance Warranty Bond:

• Get the required bond amount, warranty period and bond form from the Clay County Utility Authority.
• Have the project name, location and developer agreement details ready.
• Provide the principal's legal name exactly as it appears on the developer agreement or utility contract.
• Submit the bond application with owner and company information for underwriting.
• Pay the premium and receive the executed bond.
• Deliver the bond to the utility as part of the acceptance package for the water and wastewater facilities.

Detailed Information About the Florida Water and Wastewater Maintenance Warranty Bond:

The bond comes at the end, not the start

Most people looking for this bond are close to finishing a subdivision or commercial site, not starting one. A maintenance warranty bond is posted when the water and wastewater work is complete and the utility is ready to accept it. It is a different instrument from a performance bond, which guarantees that the work gets built in the first place. If your project needed a performance bond, finishing the job does not end your bonding obligation. The warranty bond picks up where that one leaves off.

Who posts it and who it protects

The developer or the utility contractor posts the bond as principal. The Clay County Utility Authority, which takes ownership of developer built water, reclaimed water and wastewater facilities in its service area, is the party protected. If pipe, fittings, lift stations, meters or other installed components fail because of defective materials or workmanship during the warranty period, the principal is expected to make the repairs. If the principal does not, the utility can make a claim against the bond, and the surety pays valid claims up to the bond amount. The principal then reimburses the surety.

Amount and term

The bond amount and the length of the warranty period are set by the utility for each project, usually based on the value of the facilities being turned over. Get the exact figure and term in writing from the Clay County Utility Authority, along with its required bond form, before you order the bond.

Cost

The premium depends on the bond amount, the length of the warranty term, and the financial strength and credit of the principal. Contractors with a clean completion history on the project usually see the most favorable terms.

Eligibility and Requirements for a Florida Water and Wastewater Maintenance Warranty Bond:

• Clay County Utility Authority named as obligee, unless the utility directs otherwise.
• Bond amount set by the utility for the specific project.
• Warranty period set by the utility, starting at acceptance of the facilities.
• A surety company authorized to write bonds in Florida.
• Underwriting review of the principal's credit and, for larger amounts, financial statements.

Florida Water and Wastewater Maintenance Warranty Bond FAQs:

Official and Additional Resources for the Florida Water and Wastewater Maintenance Warranty Bond: