NEW LAW REQUIRES ALL PLUMBING CONTRACTORS TO BE BONDED
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Legislation adopted in 1999 requires any person
contracting to do plumbing work within the State of
Minnesota to have a code compliance bond in the amount
of  $25,000. The person contracting to do plumbing work
by any local jurisdiction, or may give bond to the
local jurisdiction where the work is to be performed,
if the local jurisdiction has an ordinance providing
for such bonding. The bonds to benefit persons
suffering loss by reason of failure to comply with the
requirements of the plumbing code.

As of August 1, 1999, any person giving a bond to the
state will have to meet the requirements of the new
law. Beginning January 1, 2000, every person who
contracts to do plumbing work within the state -
whether a licensed plumber or not - will be required
by the state to have a plumbing bond meeting the
requirements of the new law.

The state will not require persons who already have a
plumbing bond filed with the state for 1999 to take out
a new bond for the current year; however, they must
take out a new bond complying with the law effective
January 1, 2000. Continuation bonds will not be
accepted for the year 2000 because the type of bond
amount required are changing. Plumbing bonds filed with
the state were previously performance bonds rather than
code compliance bonds, and the bond amount was
previously only $2,000.

Bonds given to the state will be for the calender year,
and will be in effect for all plumbing projects by that
person within the state during the year. For bonds
given to the state, the annual filing fee will remain
at $40.

The new bond law will better serve the public. The
former $2,000 bond amount was much less than the amount
typically needed to correct noncomplying work on even
one small job, and the requirement now applies
statewide, not just where required by a local
ordinance. The potential benefits of the new law are
evidenced by two recent projects the state health
department had inspected. In both cases, the plumbers
did noncomplying work, which, uncorrected, would have
exposed occupants of the buildings - and in one case,
consumers of the food products processed in the
building - to potentially unhealthy and unsafe
conditions. Neither of these processed in the building
- to potentially unhealthy and unsafe conditions.
Neither of these plumbers were bonded, and both walked
away from the jobs without correcting the work. Each
owner then had to pay another plumber an additional
amount exceeding $10,000 to correct the work.

The concept of a mandatory $25,000 code compliance
bond was supported by industry associations and other
participants in workgroups established to advise the
department regarding policy matters.

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Minnesota Department of Health
Division of Environmental Health  Plumbing Program
121 East Seventh Place  P.O. Box 64975
St. Paul, Minnesota  55164-0975
651/215-0836  http://www.health.state.mn.us