Michigan Sewer Bond: Everything You Need to Know

If you're a contractor working on sewer installation, maintenance, or repair projects in Michigan, you may be required to obtain a Michigan Sewer Bond. This bond ensures that contractors comply with state and local regulations when working on public and private sewer systems. It also protects municipalities and property owners from faulty workmanship, code violations, or financial damages caused by improper sewer work.

From my experience, many contractors don’t realize they need this bond until they apply for a permit or license from their local government. If you’re in that situation, this guide will explain what the Michigan Sewer Bond is, why it’s required, how much it costs, and how to obtain one quickly.

What Is a Michigan Sewer Bond?

A Sewer Bond is a type of surety bond required by state, county, or municipal agencies for businesses and contractors involved in sewer system work. It guarantees that the contractor will perform sewer-related work in compliance with Michigan’s plumbing, public health, and environmental laws.

Key Purposes of the Bond:

✔ Ensures contractors follow local and state sewer construction codes
✔ Protects the public and municipalities from substandard or unsafe work
✔ Guarantees that the contractor will repair any damage caused during construction
✔ Provides financial compensation if a contractor fails to complete the project or violates regulations

If a contractor fails to comply with these requirements, a claim can be filed against the bond to cover necessary repairs, legal costs, or damages.

Who Needs a Michigan Sewer Bond?

You may need a Michigan Sewer Bond if you:

✅ Install, repair, or maintain sewer lines, wastewater systems, or storm drains
✅ Work as a licensed plumbing or sewer contractor in Michigan
✅ Apply for a permit to connect to public sewer systems
✅ Bid on government-funded sewer infrastructure projects
✅ Are required by a county, township, or city ordinance to obtain a bond

Types of Contractors That Need a Sewer Bond

🔧 Sewer and Drainage Contractors – Those working on municipal sewer systems, stormwater drainage, or wastewater treatment systems.
🚜 Excavation Contractors – If your work includes digging or trenching for sewer line installation or repairs.
🏗 Plumbing Contractors – Businesses handling sewer connections, septic-to-sewer conversions, or commercial sewer installations.
🌎 Environmental and Wastewater Management Companies – If your work involves sewage treatment plants or industrial wastewater systems.

In my experience, bonding requirements vary by city or county, so it’s important to check with your local permit office before starting a sewer-related project.

Why Is a Michigan Sewer Bond Required?

State and local governments require a Sewer Bond to:

✔ Ensure that sewer work meets Michigan’s plumbing, environmental, and health standards
✔ Hold contractors accountable for defective or incomplete work
✔ Protect property owners and municipalities from financial losses due to contractor negligence
✔ Provide funds for repairs or damage remediation if a contractor abandons a project

Improper sewer system installation or repair can cause major public health and environmental hazards, such as contaminated water supplies or flooding. Because of these risks, bonding helps ensure that only qualified, reliable contractors are allowed to work on Michigan’s sewer infrastructure.

How Much Does a Michigan Sewer Bond Cost?

The bond amount required varies by municipality and project size. Some Michigan cities require a $10,000 bond, while others require $25,000, $50,000, or more, depending on the scope of work.

However, you don’t need to pay the full bond amount upfront. Instead, you pay a bond premium, which is a small percentage of the total bond amount.

Typical Cost Estimates:

📌 For a $10,000 Sewer Bond:

• With good credit (700+ score): $100 - $300 per year

• With fair credit (650-699 score): $300 - $750 per year

• With poor credit (below 650): $750 - $1,500+ per year

📌 For a $25,000 Sewer Bond:

• With good credit: $250 - $750 per year

• With fair credit: $750 - $1,500 per year

• With poor credit: $1,500+ per year

📌 For a $50,000 Sewer Bond:

• With good credit: $500 - $1,500 per year

• With fair credit: $1,500 - $3,000 per year

• With poor credit: $3,000+ per year

From my experience, contractors with strong credit and experience can often secure lower bond rates. If you have credit challenges, working with a surety provider that specializes in high-risk bonds can help you secure a competitive rate.

How to Obtain a Michigan Sewer Bond

Getting a Michigan Sewer Bond is a fast and simple process:

1️⃣ Determine Your Bond Requirement – Check with your local permit office or government agency to confirm the required bond amount.
2️⃣ Complete a Bond Application – Provide details about your business, financial history, and project scope.
3️⃣ Receive a Quote – Your premium will depend on credit score, financial stability, and bond amount required.
4️⃣ Pay for the Bond – Once approved, pay the bond premium to activate coverage.
5️⃣ Submit the Bond to the Appropriate Authority – File the bond with the municipality or agency issuing the sewer work permit.

Most bonds can be issued within 24 hours, so you can get started on your project without unnecessary delays.

What Happens If a Claim Is Filed Against Your Bond?

If a contractor violates contract terms, fails to complete work, or causes damages, a claim can be filed against the bond.

Common Reasons for Bond Claims:

🚨 Failure to properly install or repair sewer lines
🚨 Non-compliance with state plumbing or environmental codes
🚨 Abandoning a project without completing required work
🚨 Causing property or environmental damage due to improper sewer work

If a claim is validated, the surety company may pay the claim amount (up to the bond limit). However, the contractor is legally responsible for reimbursing the surety company for any amounts paid.

To avoid claims, contractors should:
✔ Follow Michigan plumbing and environmental codes
✔ Obtain proper permits before beginning work
✔ Ensure high-quality workmanship
✔ Fix any issues before the project is inspected

Why Choose Axcess Surety for Your Michigan Sewer Bond?

At Axcess Surety, we specialize in helping contractors secure the bonds they need—fast and at the best rates available.

✔ Quick Approvals – Get your bond issued in 24 hours
✔ Competitive Pricing – Affordable options, even for contractors with credit challenges
✔ Expert Support – We understand Michigan’s sewer bonding requirements
✔ Easy Online Application – Apply in minutes from anywhere

Get Your Michigan Sewer Bond Today!

Need a Michigan Sewer Bond for your business? We make it fast, easy, and affordable.

🔗 Apply Now or call us today to get started!