Sewer Builder Bond in Bloomfield Township, Michigan: A Comprehensive Guide

Introduction to Sewer Builder Bonds

A Sewer Builder Bond is a financial guarantee required by Bloomfield Township, Michigan, for contractors engaged in sewer construction, maintenance, and excavation work. This bond ensures that contractors comply with local regulations, state plumbing codes, and safety standards when working on public and private sewer systems.

The bond protects the township, property owners, and residents by providing financial recourse in case of substandard work, damages, or violations committed by the contractor. This comprehensive guide explains the bond requirements, application process, financial details, and legal obligations associated with the Bloomfield Township Sewer Builder Bond.

1. Understanding the Sewer Builder Bond

A Sewer Builder Bond functions as a license and permit bond, ensuring that sewer contractors perform their duties responsibly and meet all required construction codes.

Key Features of the Bond:

✅ Bond Amount – The required bond amount in Bloomfield Township is $10,000.
✅ Bond Term – Typically issued for one year, with an expiration date of December 1 each year.
✅ Purpose – Ensures that contractors use proper materials, follow safety guidelines, and meet township and state regulations.
✅ Protection – Provides financial protection in case of poor workmanship, contract violations, or infrastructure damage.

2. Importance of the Sewer Builder Bond

The Bloomfield Township Sewer Builder Bond serves several key purposes:

🔹 Ensuring Compliance with Regulations

The bond ensures that contractors follow Michigan State Plumbing Code regulations and township construction requirements.

🔹 Protecting Public Health & Infrastructure

Sewer system failures can cause flooding, contamination, and environmental hazards. The bond helps enforce high-quality work to prevent such issues.

🔹 Financial Protection for the Township & Residents

If a contractor fails to complete a project properly or causes damages, the bond provides compensation for necessary repairs.

🔹 Holding Contractors Accountable

Contractors who fail to meet standards may face claims against their bond, leading to potential legal and financial consequences.

3. Bond Requirements for Sewer Contractors

To legally work on sewer construction or maintenance projects in Bloomfield Township, contractors must:

1️⃣ Obtain a $10,000 Sewer Builder Bond.
2️⃣ File the bond with the Bloomfield Township Building Division.
3️⃣ Renew the bond annually before the December 1 expiration date.
4️⃣ Secure the necessary permits for excavation, installation, or maintenance work.
5️⃣ Follow state plumbing codes and township safety standards.
6️⃣ Carry general liability insurance to further protect against potential claims.

4. How to Obtain a Sewer Builder Bond in Bloomfield Township

The process of securing a Sewer Builder Bond involves several steps:

Step 1: Choose an Authorized Surety Provider

Contractors must obtain their bond from a licensed surety bond provider. Several companies offer these bonds, including:

✔ Surety Bond Authority
✔ ZipBonds
✔ EZ Surety Bonds

Step 2: Submit a Bond Application

The application requires:

• Business and contractor details

• Project information

• Financial credentials

• Personal or business credit history

Step 3: Pay the Bond Premium

The cost of the bond (premium) depends on the contractor's credit score and financial history. Typical premiums range from $90 to $200 per year.

Step 4: Receive & File the Bond

Once approved, the surety provider issues the bond certificate, which must be submitted to the Bloomfield Township Building Division before work begins.

Step 5: Annual Renewal

Since the bond expires on December 1, contractors must renew it annually by submitting a continuation certificate from their bonding agent.

5. Additional Permit & Documentation Requirements

Beyond the Sewer Builder Bond, Bloomfield Township requires contractors to obtain permits and approvals for sewer-related work.

Required Documents:

📌 Bond Certificate – Proof of an active $10,000 surety bond.
📌 Liability Insurance – Coverage for property damage and injuries.
📌 Building Permits – Authorization from the Bloomfield Township Building Division.
📌 Construction Plans – Three (3) copies for residential projects or five (5) copies for commercial projects.
📌 Excavation Permit – Required for digging or trenching near public sewer lines.

Failure to secure the necessary permits before starting work may result in fines, project delays, or permit revocation.

6. Financial and Legal Considerations

🔹 Cost of a Sewer Builder Bond

While the bond amount is $10,000, contractors do not need to pay the full amount upfront. Instead, they pay a small premium (starting at $90 per year) based on their credit score.

✔ Contractors with good credit (700+ score) pay as low as 1% of the bond amount ($90-$100).
✔ Contractors with bad credit may pay 5% to 10% of the bond amount ($500-$1,000).

🔹 Claim Process Against a Bond

If a contractor violates regulations or causes property damage, a claim can be filed against their bond.

1️⃣ Investigation – The surety company reviews the claim.
2️⃣ Resolution – The contractor can fix the issue or negotiate a settlement.
3️⃣ Payout – If unresolved, the surety company pays the claim up to the bond amount ($10,000).
4️⃣ Reimbursement – The contractor must repay the surety company for any claims paid.

Having multiple claims against a bond can lead to:
🚫 Higher premiums in the future.
🚫 Difficulty obtaining future bonds.
🚫 Suspension of permits or legal action.

7. Bloomfield Township Sewer Projects & Investments

Bloomfield Township actively invests in sewer infrastructure to ensure safe and efficient wastewater management.

Ongoing & Planned Sewer Improvements:

✔ Sewer Line Replacement – Upgrading aging sewer lines to reduce leaks and blockages.
✔ Stormwater Management Systems – Preventing flooding and sewer overflows.
✔ Wastewater Treatment Enhancements – Meeting environmental standards for clean water discharge.
✔ Residential & Commercial Sewer Expansions – Supporting new housing and business developments.

8. Key Takeaways

🔹 A $10,000 Sewer Builder Bond is mandatory for sewer contractors in Bloomfield Township.
🔹 Bonds ensure compliance, public safety, and financial accountability.
🔹 The bond premium ranges from $90 to $200 per year, based on credit history.
🔹 Contractors must renew the bond annually before December 1.
🔹 Additional permits and insurance are required for sewer-related work.
🔹 Claims against a bond can result in legal and financial consequences.

For more details, visit the Bloomfield Township Building Division or consult a licensed surety provider.

Would you like a detailed breakdown of bond costs or assistance with the application process? 🚧