Surety Bond Encyclopedia

Mechanical Contractor ($5,000) Bond - City of El Paso, TX in Texas

Brief Summary

It is easy to price the city's $50,000 blanket building construction bond by mistake when registering as a mechanical contractor in El Paso. That bond sits under the general contractor requirements. The bond on this page is the $5,000 Mechanical Contractor bond in favor of the City of El Paso, a much smaller instrument with a premium to match.

The City of El Paso is the obligee on this $5,000 Mechanical Contractor bond. Mechanical contractors register with the city's One Stop Shop by filing the Contractor Registration Application with their Master Mechanical State License, and the application must be filed annually to stay eligible for city permits. Confirm with the One Stop Shop that the bond applies to your registration and get its current form before the bond is issued.

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

Hold a current Texas air conditioning and refrigeration contractor license.
Complete the City of El Paso Contractor Registration Application and the authorized permit puller form.
Confirm with the One Stop Shop that the $5,000 bond applies to your registration and get its current form.
Use the business name exactly as registered with the county or in the articles of incorporation.
Complete the surety application, review the premium, and file the executed bond with your registration.
File the registration application again each year to stay eligible for city permits.

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

Make sure you are buying the right El Paso bond

The city's Contractor Registration Requirements sheet (Rev. 6/2023) lists a $50,000 Blanket Building Construction Bond, or a $10,000 blanket bond for limited work such as irrigation, fences and pavement cuts in the public right of way, under its general contractor requirements. The mechanical contractor entry on the same sheet lists the Master Mechanical State License with the registration application. The $5,000 Mechanical Contractor bond on this page is a different instrument, written in favor of the City of El Paso.

The state license comes first

Texas Occupations Code 1302.251 says a person may not engage in air conditioning and refrigeration contracting without an air conditioning and refrigeration contractor license, and that a state license is valid throughout the state. The Texas Department of Licensing and Regulation runs the ACR program, and its program page adds that inside a city's limits, ACR contractors must still follow city permitting requirements and any local code amendments.

No city registration fee for ACR license holders

Since September 1, 2021, Occupations Code 1302.304, added by House Bill 871, bars a municipality from charging a registration fee to an ACR license holder for work performed in the municipality or for notice provided under Section 1302.262. The city can still charge building permit fees.

Annual registration

The city's Contractor Registration Application states that it must be filed annually to remain eligible to obtain permits from the City of El Paso, and the application cites Title 18 of the El Paso City Code. All registration documents must show the business name exactly as registered with the county or in the articles of incorporation, including punctuation and abbreviations.

What the bond guarantees

The bond names the City of El Paso as obligee and guarantees that the contractor will follow the city's building and mechanical code requirements for work done in El Paso. If the contractor violates them and a valid claim is made, the surety pays up to $5,000 and then recovers that money from the contractor.

Before the bond is issued

Confirm with the One Stop Shop at 811 Texas Ave., El Paso, TX 79901, phone 915.212.0104, that the bond applies to your registration, the exact obligee wording, and the current bond form.

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

City of El Paso named as obligee.
Bond amount of $5,000.
Master Mechanical State License submitted with the registration application.
Business name on every document matching the county registration or articles of incorporation.
Owner credit review by the surety.

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

Do I need the $50,000 blanket building construction bond?

The city's Rev. 6/2023 requirements sheet lists the $50,000 and $10,000 blanket building construction bonds under general contractor requirements. The mechanical contractor entry lists the Master Mechanical State License with the registration application. The bond on this page is the $5,000 Mechanical Contractor bond.

Can El Paso charge me a registration fee if I hold a state ACR license?

No. Texas Occupations Code 1302.304, in effect since September 1, 2021, bars a municipality from charging a registration fee to an ACR license holder for work performed in the municipality. Building permit fees still apply.

My state license is valid statewide. Why does the city get involved?

The license is valid throughout Texas under Occupations Code 1302.251, but TDLR notes that inside city limits ACR contractors must still follow city permitting requirements and local code amendments.

How often do I register?

The city's registration application states that it must be filed annually to remain eligible to obtain permits from the City of El Paso.

Where do I file?

With the One Stop Shop, 811 Texas Ave., El Paso, TX 79901, phone 915.212.0104. Confirm the bond form and obligee wording there before the bond is issued.