Surety Bond Encyclopedia

Wage Welfare Bond - District Council 1 of the Int'l Union of Bricklayers & Allied Craftworkers in Illinois

Brief Summary

Two things catch contractors off guard here. The bond amount is tied to how many employees you have working under the agreement, so it grows with your crew, and under the published Article XXIV language a single delinquency, even one you later cure, puts an established contractor on the bonding requirement. A surety bond meets the requirement for a premium instead of tying up cash.

Contractors bound to the agreement with Administrative District Council 1 of Illinois of the International Union of Bricklayers and Allied Craftworkers post this bond to guarantee payment of all obligations under the agreement, including wages and benefit fund contributions. The published Section 24.2 schedule runs from $10,000 for two or fewer employees to $180,000 for 21 to 30, plus $60,000 for each additional ten employees. Confirm the current schedule and bond form with ADC 1 before the bond is issued.

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How to Apply for a Wage Welfare Bond:

Count the employees who will work under the agreement and find your tier in Section 24.2.
Confirm the current bond schedule, the bond form and the obligee wording with ADC 1 at (630) 941-2300.
Complete the bond application in the employer's exact legal name as it appears on the agreement.
Pay the premium and deliver the executed bond to ADC 1.
Raise the bond amount when your headcount moves into a higher tier.

Detailed Information About the Illinois Wage Welfare Bond:

The amount depends on your headcount

The June 1, 2010 memorandum of agreement between Administrative District Council 1 of Illinois and the Northern Illinois Mason Employers' Council revised Article XXIV, Section 24.2 to set the bond by the number of employees working under the agreement:

2 employees or fewer: $10,000
3 to 5 employees: $30,000
6 to 10 employees: $60,000
11 to 20 employees: $120,000
21 to 30 employees: $180,000
Each additional 10 employees: the bond increases $60,000

Later agreements can change these figures, so confirm the current Section 24.2 schedule with ADC 1 before ordering the bond.

Who has to post it

Under the revised Section 24.1, a bond is required from any employer that becomes bound to a new agreement with the District Council on or after June 1, 2010, and from any employer that is or becomes delinquent in any obligation under the agreement, regardless of the length or amount of the delinquency and regardless of whether it later cures it. The bond must be a satisfactory surety company's bond guaranteeing payment of all obligations under the agreement. The same memorandum states that an employer accepted by the Associations but not listed in Exhibit A becomes bound to the agreement only once it complies with the bond requirement and the Union confirms it.

Who ADC 1 is today

BAC Administrative District Council 1 of Illinois is based at 660 North Industrial Drive, Elmhurst, IL 60126, phone (630) 941-2300, and lists Locals 21, 56, 74 and 79. It covers bricklayers and stone masons, pointers, cleaners and caulkers, tile, terrazzo, marble, plaster, precast and concrete specialist work. Separate benefit fund offices handle health and welfare and pension contributions for bricklayers, marble and plaster workers, for ceramic tile and terrazzo, and for tuckpointers, cleaners and caulkers. Current wage and benefit rate sheets run from June 1, 2026 through May 31, 2027.

Eligibility and Requirements for a Illinois Wage Welfare Bond:

A satisfactory surety company's bond guaranteeing payment of all obligations under the agreement.
Bond amount matching the Section 24.2 tier for your number of employees.
Required of employers newly bound on or after June 1, 2010 and of any employer with a delinquency, even a cured one.
Principal name matching the signatory employer exactly.
Owner credit and financial review by the surety.

Illinois Wage Welfare Bond FAQs:

How much bond do I need?

Under the published Section 24.2 schedule it depends on your headcount under the agreement: $10,000 for 2 or fewer employees, $30,000 for 3 to 5, $60,000 for 6 to 10, $120,000 for 11 to 20, $180,000 for 21 to 30, and $60,000 more for each additional ten. Confirm the current schedule with ADC 1.

We have been signatory for years. Do we need a bond?

Under the revised Section 24.1, an employer bound before June 1, 2010 must post the bond if it is or becomes delinquent in any obligation under the agreement, regardless of the amount or length of the delinquency and even if it later cures it.

Can a new contractor start work before posting the bond?

The memorandum states that an employer accepted by the Associations but not listed in Exhibit A becomes bound to the agreement only after it complies with the bond requirement and the Union confirms it. Post the bond first.

Where do benefit contributions go?

ADC 1 lists separate fund offices for bricklayers, marble and plaster workers, for ceramic tile and terrazzo, and for tuckpointers, cleaners and caulkers. Use the fund office for your trade.

What does the bond cost?

The premium is based on the bond amount for your tier and the surety's review of the owner's credit and the company's financial condition. A higher headcount tier means a larger bond and a larger premium.