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Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
Signing with Plumbers and Gasfitters Local Union 5 means guaranteeing that your crews' wages and the fringe benefit contributions owed to the Local's funds will be paid. A wage and fringe benefits bond gives the union and its funds that guarantee without you parking cash in escrow, so you can put Local 5 journeymen and apprentices to work on your jobs as soon as the bond is filed.
The Wage and Fringe Benefits bond guarantees that a contractor signatory to a Plumbers and Gasfitters Local Union 5 agreement will pay the wages and the fringe benefit contributions the agreement requires. The obligee is Local 5 and the benefit funds named in the agreement, based at 4755 Walden Lane, Lanham, Maryland. The bond amount is set by the union and its funds under the agreement, not by a state statute, so confirm the required amount and bond form with Local 5 before the bond is issued.
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The biggest misconception about this bond is that it comes from a Maryland licensing agency. It does not. It is required by Plumbers and Gasfitters Local Union 5, an affiliate of the United Association, as part of the contractor's commitment under the collective bargaining agreement. Maryland plumbing license bonds are a separate matter. This bond runs to the Local and its benefit funds and guarantees what you owe your Local 5 workforce.
Local 5 covers all of Washington, D.C. In Maryland its published jurisdiction includes all of Montgomery, Prince George's, Charles, Calvert and St. Mary's Counties, part of Anne Arundel County, and Washington County to the Hancock city limits. It also covers Arlington, Fairfax, Loudoun, Prince William, Stafford, Fauquier and Clarke Counties in Virginia, parts of several more, and the cities of Alexandria, Fairfax, Falls Church, Fredericksburg and Winchester. If you employ Local 5 members on work inside that territory, expect the bond to be part of signing on.
Federal law already obligates you to pay. Under 29 U.S.C. 1145, every employer obligated to contribute to a multiemployer plan under a collectively bargained agreement must make those contributions according to the terms of the plan or the agreement. The bond puts a surety behind that promise. If a signatory contractor falls behind on wages or on contributions to the funds named in the agreement, the union or the funds can make a claim on the bond, and the surety then looks to the contractor for repayment.
There is no statutory figure for this bond. The amount is set by Local 5 and its funds under the agreement you sign. Get the required amount and the bond form in writing from Local 5 before the bond is written so the penal sum and the obligee names match exactly.
The surety prices this bond on the amount the union requires and on its underwriting of the contractor. Because the bond guarantees payroll and benefit contributions, underwriters focus on owner credit, the company's financial statements, and its history of paying wages and fund contributions on time.
Plumbers and Gasfitters Local Union 5, as part of the contractor's obligations under its collective bargaining agreement. It is not a Maryland licensing bond.
The amount is set by Local 5 and its funds under the agreement, not by statute. Confirm the required amount with Local 5 before the bond is issued.
Federal law, 29 U.S.C. 1145, requires employers bound by a collectively bargained agreement to make plan contributions according to its terms. If contributions or wages go unpaid, the union or the funds can claim on the bond, and you must repay the surety for any claim it pays.
Local 5's jurisdiction covers all of Washington, D.C., several Maryland counties and a number of Northern Virginia counties and cities. The bond guarantees your obligations under the Local 5 agreement wherever that agreement applies. Confirm the scope with Local 5.
Plumbers and Gasfitters Local Union 5, 4755 Walden Lane, Lanham, MD 20706, telephone 301-899-7861.
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