Surety Bond Encyclopedia

Wage and Welfare Bond - New England Regional Council of Carpenters United in Massachusetts

Brief Summary

This bond has no sticker amount, which is the first thing most contractors get wrong. The carpenters' agreement ties it to your own fringe benefit contributions, so a surety bond lets you meet the union's requirement without tying up months of benefit money in an escrow account.

Contractors signing with the carpenters' union in Massachusetts must post a bond to cover fringe benefit contributions, or deposit cash in escrow instead. There is no set dollar figure. Under the Boston and Eastern Massachusetts agreement, a habitually delinquent employer must post a bond equal to its average fringe benefit liability over the preceding 90 days, or double the largest amount it left unpaid. The New England Regional Council of Carpenters now operates as the North Atlantic States Regional Council of Carpenters.

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How to Apply for a Wage and Welfare Bond:

Get the bond amount in writing from the council or its collection agency before you apply, since the agreement sets it by formula rather than a published figure.
Confirm the exact obligee name and any required bond wording with the council, using the current North Atlantic States names.
Have your legal entity name exactly as it appears on the signed agreement.
Be ready to show recent payroll and fringe benefit contribution history, which drives both the bond amount and the surety's review.
Complete the bond application and review the quoted premium.
Deliver the executed bond before carpenters are dispatched to your jobs.

Detailed Information About the Massachusetts Wage and Welfare Bond:

There is no fixed amount

The bond amount is not published as a flat figure or a tier chart. It is built from your own payroll. Article 15, Section 3 of the 2023 to 2027 agreement between the North Atlantic States Regional Council of Carpenters and the Boston and Eastern Massachusetts contractor associations sets the fringe benefit bond at either the employer's average fringe benefit liability over the preceding 90 days, or double the maximum contributions the employer failed to pay during its delinquency. A small crew and a large one will be asked for very different amounts. Any tier chart you see for this bond did not come from the agreement.

Two ways you end up needing it

The first is signing on as a new union contractor. The council's own contractor FAQ states that new contractors must provide a bond to cover benefit payments, and that contractors who cannot provide one are asked to deposit money into an escrow account instead. The council does not publish the amount it asks of new signatories.

The second is falling behind. The agreement defines a habitually delinquent employer as one that is late paying contributions to the North Atlantic States Carpenters Benefit Funds three or more times in a twelve-month period. Once that happens, the union or its central collection agency will require the bond before furnishing carpenters to that employer. The same clause appears in the current Western Massachusetts Local 336 and Local 723 Wood Frame agreements.

The name changed in 2019

The United Brotherhood of Carpenters renamed the New England Regional Council of Carpenters the North Atlantic States Regional Council of Carpenters in November 2019. The benefit funds now carry the North Atlantic States name as well. A bond request, the agreement you sign and the bond itself should all reflect the current names.

Contractual, not statutory

No Massachusetts statute requires this bond. It comes from the collective bargaining agreement you sign. It is also a separate instrument from the payment bond a general contractor posts on a Massachusetts public works job under M.G.L. c. 149, Section 29, even though that bond can also answer for unpaid health and welfare contributions.

Eligibility and Requirements for a Massachusetts Wage and Welfare Bond:

A signed collective bargaining agreement with the North Atlantic States Regional Council of Carpenters, formerly the New England Regional Council of Carpenters.
Bond amount set by the agreement's formula: average fringe benefit liability over the preceding 90 days, or double the maximum unpaid contributions for a delinquent employer.
Escrow deposit accepted as an alternative for new contractors who cannot provide a bond.
Financial statements and credit review. Contribution payment history carries heavy weight with the surety on this bond.

Massachusetts Wage and Welfare Bond FAQs:

How much is the bond?

It depends on your own numbers. The Boston and Eastern Massachusetts agreement sets it at your average fringe benefit liability over the preceding 90 days, or double the most you left unpaid during a delinquency. New contractors should ask the council for the figure in writing before buying the bond.

Why am I being asked for a bond when I have been signatory for years?

Most likely because you were late on benefit fund contributions three or more times in a twelve-month period. That makes you habitually delinquent under the agreement, and the union can require the bond before sending you more carpenters.

Can I deposit cash instead?

Yes, for new contractors. The council's FAQ says contractors who cannot provide a bond are asked to deposit money into an escrow account. A surety bond keeps that cash in your business.

Is this required by Massachusetts law?

No. It comes from the collective bargaining agreement, not a statute. The payment bond on Massachusetts public works under M.G.L. c. 149, Section 29 is a different bond.

Is the New England Regional Council of Carpenters the same organization?

Yes. It was renamed the North Atlantic States Regional Council of Carpenters in November 2019.

What will the premium be?

The surety sets it based on the bond amount, your credit, your financial statements and your contribution payment history. A history of late contributions will weigh against you.