Surety Bond Encyclopedia

Dain Layer Bond - Cranston, RI in Rhode Island

Brief Summary

In Cranston, sewer and storm drain connections are issued to a duly licensed plumber or drain layer, so the drain layer license is what gets you onto the permit. The surety bond is part of getting that license in place. You pay a yearly premium instead of putting up cash, and the bond is usually issued the same day you apply.

The City of Cranston licenses drain layers under its Code of Ordinances and lists a $100 drain layer license fee in section 5.04.100. The drain layer bond is posted by the contractor with the City of Cranston as obligee. It guarantees the drain layer will follow the city ordinances that govern sewer and drain work and will answer for losses the city or the public suffer when it does not.

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How to Apply for a Dain Layer Bond:

Confirm the required bond amount and bond form with the Cranston City Clerk.
Have the business name exactly as it will appear on the drain layer license.
Owner 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 executed bond naming the City of Cranston as obligee.
File the bond with the drain layer license application and the $100 license fee.

Detailed Information About the Rhode Island Dain Layer Bond:

Why Cranston drain layers need a license

Cranston does not let a property owner or an unlicensed crew tie into the public sewer on their own. Under section 13.08.100 of the city code, no sanitary connection to the public sewer system can be made until the owner applies in writing and receives permission. Once the city approves, the public works director authorizes the building inspector to issue the permit to a duly licensed plumber or drain layer. Section 13.08.150 adds that the city will give the owner a list of approved contractors for building and street laterals, and that the owner bears all installation, inspection and connection costs.

The license itself

Licenses and permits in Cranston are issued by the City Council's Committee on Safety Services and Licenses under sections 5.04.010 and 5.04.020. The fee schedule in section 5.04.100 lists drain layers at $100.00. Business license applications are filed through the City Clerk's online licensing portal.

Street openings are a separate permit

A drain layer license does not cover digging in the road. Section 12.04.100 bars anyone from opening or excavating any public highway, street, roadway or sidewalk, or laying any pipe or drain under it, without prior written consent of the director of public works. The listed permit fees are $450.00 each for a water service connection, a sewer lateral installation and a storm drain installation, and the work must meet the city's specifications for street repairs.

What the bond guarantees

The bond is a promise from a surety company to the City of Cranston that the licensed drain layer will do its work under the city's sewer, drain and street ordinances. If the drain layer fails to do so and the city or a member of the public suffers a loss, a claim can be made against the bond. The surety pays valid claims up to the bond amount and the drain layer must repay the surety. The bond protects the city and the public, not the contractor.

How premium is set

The premium is a yearly charge set by the surety after it reviews the owner's personal credit and the business history. The penal sum on the bond is the surety's limit, not what you pay.

Before you file

Confirm the required bond amount, the current bond form and the filing steps with the Cranston City Clerk before the bond is issued, so it is accepted with your license application the first time.

Eligibility and Requirements for a Rhode Island Dain Layer Bond:

A Cranston drain layer license, issued through the Committee on Safety Services and Licenses.
City of Cranston named as obligee on the bond.
Business name on the bond matching the license application exactly.
A separate roadway excavation permit from the director of public works for any work in a public street or sidewalk.
A certificate of insurance when installing building and street laterals under section 13.08.150.

Rhode Island Dain Layer Bond FAQs:

Can a homeowner hire any contractor to connect to the Cranston sewer?

No. Section 13.08.100 says the connection permit is issued to a duly licensed plumber or drain layer, and section 13.08.150 has the city give owners a list of approved contractors for building and street laterals.

Does my drain layer license let me open the street?

No. Any opening or excavation in a public street, roadway or sidewalk needs prior written consent of the director of public works under section 12.04.100. Sewer lateral and storm drain installations each carry a $450.00 permit fee.

What is the drain layer license fee?

Section 5.04.100 of the Cranston code lists the drain layer license fee at $100.00.

How much does the bond cost?

You pay a yearly premium, not the full bond amount. The surety sets it after reviewing the owner's credit and business history. Apply to see the quoted price.

What happens if a claim is filed?

The surety investigates. If the claim is valid it pays up to the bond amount, and the drain layer must reimburse the surety for what it paid and its costs.