Plumbing Contractor ($5,000) Bond - City of Abilene, TX in Texas

Brief Summary

Before you buy a $5,000 plumbing contractor bond for Abilene, know what the city and state already ask of licensed plumbers: a Texas plumbing license and at least $300,000 of general liability insurance. Confirm what this bond is for and which form it goes on, then buy it once, correctly.

This $5,000 bond runs to the City of Abilene, Texas for a plumbing contractor. Abilene's published credentials for plumbing contractors are a State of Texas plumbing license and proof of at least $300,000 general liability insurance, and Texas Occupations Code 1301.552 ties a city's permit check to that insurance certificate. Confirm with the city or whoever requested the bond what it covers before it is issued.

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

• Hold a current State of Texas plumbing license.
• Carry general liability insurance of at least $300,000 and keep the certificate on file with the state board.
• Ask the City of Abilene, or whoever requested the bond, what the $5,000 bond covers and which form it must be on.
• Have the surety issue the $5,000 bond naming the City of Abilene as obligee.
• Register as a contractor with the City of Abilene through MyGov and keep the bond and insurance current.

Detailed Information About the Texas Plumbing Contractor ($5,000) Bond:

What Abilene publishes for plumbing contractors

Abilene's contractor requirements list three items for a plumbing contractor: $300,000 general liability insurance, a State of Texas plumbing license and a copy of a driver's license. Registration is free and done through the city's MyGov portal, and the city requires contractors to keep registration, insurance and bonds current as they expire.

What Texas law says a city may ask of a licensed plumber

Texas Occupations Code 1301.552 says a political subdivision that requires a responsible master plumber to get a permit shall verify that the plumber has a certificate of insurance on file with the state board. The coverage must be commercial general liability of not less than $300,000 for all claims in a one-year period. The 2009 bill that rewrote this area, S.B. 1354, removed the earlier provision that required a city to accept a master plumber's bond before issuing a permit. Section 1301.551(g) adds that a person who must obtain a plumbing permit is not required to pay a plumbing registration fee or administrative fee, and 1301.551(h) requires a plumbing contractor to register with a city that requires registration.

Put plainly, state law now ties a city's check of a state-licensed plumber to the insurance certificate, not a bond. If you are a licensed plumber and someone in Abilene asks you for a $5,000 bond, ask what the bond is for and under what authority before you buy it.

What the bond does

The City of Abilene is the obligee and the plumbing contractor is the principal. The bond guarantees the contractor's compliance with the obligations it is written to cover, up to $5,000, and the contractor repays the surety for any claim it pays.

Before the bond is issued

Confirm the current form, the exact obligee wording and the filing steps with the City of Abilene, 325-676-6273. The city also says only a licensed plumber can make a service connection to a city sewer main.

What it costs

You pay a premium to the surety, not the $5,000 bond amount. The surety sets it after a review of the owner's credit.

Eligibility and Requirements for a Texas Plumbing Contractor ($5,000) Bond:

• Bond amount of $5,000.
• City of Abilene, Texas named as obligee.
• State of Texas plumbing license.
• Proof of at least $300,000 general liability insurance.
• No plumbing registration or administrative fee, under Texas Occupations Code 1301.551(g).

Texas Plumbing Contractor ($5,000) Bond FAQs:

Official and Additional Resources for the Texas Plumbing Contractor ($5,000) Bond: