Blog Posts Categorized: Contractors - Page 6

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Oregon HB 2296 was passed by state legislators last month, resulting in a surety bond increase for water well contractors. The new law takes effect on January 1, 2018, and will also increase the permit bond required for permitted water well projects.

Water well contractors, also called well constructors by the state of Oregon, are licensed by the Water Resources Department to construct, alter, abandon, or convert wells. Licensed constructors must currently post a $10,000 surety bond that guarantees their compliance with applicable sections of Chapter 537 of the Oregon Revised Statutes. HB 2296 increases the required coverage amount to $20,000.

Before becoming licensed, well contractors must pass an exam that is offered four times per year. Applicants must be at least 18 years old and pay the fees associated with licensure:

• $20 examination fee
• $150 license fee
• $150 license renewal fee

Well constructors’ licenses expire and must be renewed annually. If a water well contractor lets his or her license expire and renews it within 12 months following expiration, the renewal fee increases to $250.

Individuals that are not licensed water well contractors, but that are landowners, can apply for a permit to construct, alter, abandon, or convert a well on their property. Under current law, landowners must pay a $25 permit fee and furnish a $5,000 surety bond guaranteeing that they comply with the same laws that apply to well contractors. HB 2296 increases both the permit fee and the required surety bond coverage, mandating that landowners pay a $500 fee and furnish a $10,000 surety bond.

Before performing any water well construction, well contractors should ensure they are properly licensed and bonded. Landowners should contact the Water Resources Department to be sure they are following the proper procedure for well construction. Well constructors and landowners can contact the Department with questions about the surety bond increase.

Ready to get bonded in Oregon? Single Source Insurance can answer your questions and get you the lowest premium for your bond!

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Missouri electrical contractors have new regulations to follow with the passage of SB 240, which takes effect on August 28, 2017. The regulations pertain to their statewide licensure and include new surety bond requirements.

Missouri electrical contractors will be able to hold statewide licenses under the provisions of SB 240, meaning they could conduct business anywhere regardless of the jurisdiction’s licensing laws. The Division of Professional Registration within the Department of Insurance will handle Missouri electrical contractors’ licensure.

When applying for a license, Missouri electrical contractors must meet the following criteria detailed in SB 240:

• At least 21 years old
• Provide proof of $500,000 in liability insurance
• Post surety bonds as required by each political subdivision in the state of Missouri in which work will be performed
• Pass a standardized, nationally accredited electrical assessment examination

Would-be Missouri electrical contractors must satisfy training requirements by completing training in one of the following ways:

• 12,000 verifiable practical hours installing equipment and associated wiring
• 10,000 verifiable practical hours of installation and having received an electrical journeyman certificate from a U.S. Department of Labor-approved apprenticeship program
• 8,000 verifiable practical hours of installation and having received an associate’s degree from a state-accredited program
• 4,000 hours supervising installation and having received a four-year electrical engineering degree

Any Missouri electrical contractors whose license was issued before January 1, 2018, passed an electrical assessment exam to obtain the license, and have completed 12,000 verifiable hours of installation will be issued a statewide license. Statewide licenses must be renewed every three years.�Political subdivisions (e.g. cities or counties) will still have the authority to issue their own electrical contractor licenses, but must recognize statewide licenses in lieu of local licenses.

The surety bond provision of SB 240 requires that Missouri electrical contractors obtain any surety bonds required in the political subdivision where they work. For example, St. Louis county requires electrical contractors to obtain a $10,000 surety bond, so electricians working in that county must obtain that surety bond. Before working as an electrical contractor in Missouri, check with local government to be sure you stay compliant with their laws.

Ready to get a Missouri electrical contractors’ surety bond? Single Source Insurance can help you get bonded fast.

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Tennessee home improvement contractors and contract security companies will need to adhere to new bonding requirements following the passage of SB 1188.

Tennessee home improvement contractors are required to obtain a license through the Board for Licensing Contractors in several counties when the cost of the project is between $3,000 and $24,999. Counties that have adopted the requirement are as follows:

• Bradley
• Davidson
• Haywood
• Hamilton
• Knox
• Marion
• Robertson
• Rutherford
• Shelby

Under current law, Tennessee home improvement contractors have the option of providing a letter of credit, cash bond, property bond, or surety bond for $10,000 as a form of financial security. SB 1188 eliminates the option for home improvement contractors to post a cash or property bond, meaning only a surety bond or letter of credit in the amount of $10,000 will be accepted. Tennessee home improvement contractor applicants should note that the license does not cover electrical, plumbing, or HVAC work. Home improvement contractors should be familiar with their licensing requirements and all regulations set forth by the state of Tennessee.

SB 1188 also contains a provision for contract security companies in the state. Companies will need to obtain a surety bond when requesting a special event permit and hiring temporary security guards for the event. Temporary security guards are those that are not registered with the Department of Commerce & Insurance as employees of the contract security company. The amount of the surety bond will be determined at the time of permit application, and benefits anyone damaged by a temporary security guard acting under the special event permit.

To become licensed as a contract security company, applicants must meet criteria that includes the following:

• At least 21 years old
• U.S. citizen or resident alien
• Of good moral character
• Satisfying the experience or examination requirement
• Provide three credit references with whom they’ve established a credit record

Consult Tennessee’s full list of contract security company licensing requirements before submitting an application.

Ready to get a Tennessee surety bond? Give Single Source Insurance a call today!

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SB 1113 takes effect on July 1, 2017, and will allow Virginia contractors to post a surety bond as proof of financial responsibility. Current law requires that Class A and B contractors prove a minimum net worth as dictated by their license class with a financial statement or a balance sheet reviewed by a CPA.

Virginia contractors are classified according to the value of the contracts they handle. Contractors handling one contract that totals $120,000 or more, or handling contracts totaling $750,000 or more over a twelve-month period are licensed as Class A contractors. Class B contractors handle one contract valued between $10,000 and $120,000, or contracts totaling between $150,000 and $750,000 over the course of a year. Class C contractors, who are not affected by SB 1113, handle one contract valued at less than $10,000, or contracts totaling less than $150,000 over the course of a year.

Class A contractor license applicants must demonstrate a minimum net worth of $45,000, and Class B contractors must demonstrate a minimum net worth of�$15,000. SB 1113 will allow applicants to obtain a $50,000 surety bond rather than providing a financial statement or balance sheet. When renewing their license, Virginia contractors must show proof of a current surety bond.

Virginia contractors are licensed by the state Board of Contractors, a division of the Department of Professional and Occupational Regulation (DPOR). The DPOR has created a step-by-step guide to becoming licensed as a contractor, and applicants should keep in mind that several counties and cities in Virginia have additional contracting licensure requirements. Check with the county and city in which you will be conducting business before beginning work on a contract to make sure you’re correctly licensed.

SB 1113 specifies that Virginia contractors’ surety bonds are intended to satisfy court-ordered judgments that are not satisfied by the contractor. The surety bond’s liability is for actual monetary loss, court costs, and attorney’s fees incurred in the pursuit of the judgment, and cannot be used for interest or punitive damages assessed against the contractor. The bill also specifies that surety companies must notify the Board when a claim is made against the bond, when a claim is paid out, and when the bond is canceled.

Ready to purchase your surety bond? Get in touch with Single Source Insurance today and learn more about your Virginia contractor surety bond!