Surety Bond Encyclopedia

Sewer Contractor ($5,000) Bond - City of Wyandotte, MI in Michigan

Brief Summary

In Wyandotte, the City Engineer will not issue a permit to build or repair a sewer until your bond is on file with the Department of Engineering and Building. The $5,000 bond is the piece that unlocks the permit. You pay a premium instead of tying up cash, and the bond goes to the city in your company's exact name so the permit can move.

The City of Wyandotte requires a bond or policy of insurance on file with its Department of Engineering and Building before it grants any permit to construct or repair a sewer, under Wyandotte Code section 170.134. This page covers the $5,000 sewer contractor bond, which runs to the City of Wyandotte and guarantees payment for damage to streets, alleys and public rights of way and holds the city harmless for other damage tied to the permitted work.

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How to Apply for a Sewer Contractor ($5,000) Bond:

Legal business name and address exactly as they will appear on the Wyandotte sewer permit application.
Owner or principal name, home address and Social Security number for the credit review.
Complete the bond application and review the quoted premium.
Pay the premium and receive the signed $5,000 bond naming the City of Wyandotte as obligee.
File the bond with the Department of Engineering and Building before the permit is issued.
Pay the sewer permit fee from the Plumbing Code fee schedule and post the permit on the job site.

Detailed Information About the Michigan Sewer Contractor ($5,000) Bond:

The permit waits on the bond

Wyandotte handles sewer work through Chapter 170 of its Code of Ordinances, in the subchapter on sewer construction and repair. Section 170.133 says no person may construct or repair any sewer without a permit from the Department of Engineering and Building, and the work has to follow the specifications set by the City Engineer. Section 170.134 then adds the step many contractors miss: no permit is granted for any work in that subchapter until a bond or policy of insurance has been filed with the Department of Engineering and Building.

What the bond guarantees

Under section 170.134(C), the bond is conditioned to pay all damages to the streets, alleys or public rights of way of the city and to hold the city harmless from any other damage to persons or property that the city could be held liable for because of the permitted work. In plain terms, if an excavation for a lateral repair damages the street or someone is hurt and the contractor does not make it right, the city can make a claim on the bond. The contractor then repays the surety.

Who needs it

Section 170.130 makes property owners responsible for their sewer systems up to and including the tap on the main. That is why most of this work is private, hired by the owner, and done by a contractor who pulls the permit. The contractor who pulls the permit is the one who posts the bond, named as principal, with the City of Wyandotte as obligee.

Permit fee, inspection and appeals

The City Engineer charges the permit fee listed in the fee schedule of the city's Plumbing Code, and the permit has to be posted where it can be seen on the job site. Every job is inspected by the City Engineer, who can suspend or revoke a permit when the workmanship or materials do not match the approved plans and specifications (section 170.136). If the department refuses a permit, the applicant can appeal to the City Council under section 170.135, and a permit granted on appeal still carries the bond requirement.

Before the bond is issued

Confirm the current bond form and filing steps with the Wyandotte Engineering and Building Department at 3200 Biddle, 734-324-4500. The department can tell you whether it wants its own bond form or will accept a standard form in the $5,000 amount.

Eligibility and Requirements for a Michigan Sewer Contractor ($5,000) Bond:

Bond amount of $5,000 naming the City of Wyandotte as obligee.
Bond conditioned to pay damages to streets, alleys and public rights of way and to hold the city harmless, per Wyandotte Code 170.134(C).
Work done to the specifications established by the City Engineer.
Principal name on the bond matching the permit application exactly.
Owner credit review. Credit history sets the premium rate rather than eligibility for most applicants at this bond size.

Michigan Sewer Contractor ($5,000) Bond FAQs:

Can I get the sewer permit first and bring the bond later?

No. Wyandotte Code section 170.134(A) says no permit is granted for sewer construction or repair work until a bond or policy of insurance has been filed with the Department of Engineering and Building. Order the bond before you apply for the permit.

What does the bond actually cover?

It guarantees payment for damage to Wyandotte streets, alleys and public rights of way caused by the permitted work, and it holds the city harmless from other damage to people or property that the city could be held liable for because of that work. It protects the city and the public, not the contractor.

My permit was denied and I appealed to the City Council. Do I still need the bond?

Yes. Section 170.134(B) says the Council requires the bond or policy of insurance at the time it grants a permit on appeal, and the Council can add further conditions to protect people and property during construction.

How is the premium set?

The surety prices the bond from the owner's personal credit, the company's history and the bond amount. You pay the premium once for the bond term. It is not a deposit and it is not refunded.

Who is responsible for the sewer line itself?

Under section 170.130, Wyandotte property owners are responsible for maintaining their sewer systems up to and including the tap on the main. The owner hires the contractor, and the contractor who pulls the permit posts the bond.