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The county should use some mix of Performance Bonds and Surety Bonds to guarantee performance of plumbing work
The local, state and federal govts. use a system similar to the one we are proposing. They utilize performance bonds to assure the quality of work done by contracters and subcontractors, including plumbers
In the system we are proposing surety bonds will be purchased by the plumber at the point of licensure and will act to cover the plumber for services costing up to $X….a surety bond is.......
Performance Bonds will be purchased for services costing over $X…. bonds for very large contracts are scaled
Govts. require a 100% of the project price to be posted when the bid is accepted....the contract negotiator has some flexibility in setting the bond price
The County, or some other actor like the City of Pittsburgh, can act as the administrator of these financial devices. In this position, the county will receive interest on the bonds. Also, the Plumbing Section will remain as a licensing and training agency and will mediate consumer complaints.
We recommend a mix because Performance bonds for all work would be prohibitively expensive for the plumbers and Surety Bonds for all work would be too much paperwork.
Since earnings are necessary for the purchase of Performance or Surety Bonds, beginning Plumbers will be required to serve as an Apprentice under a licensed Master Plumber four a number of years before being eligible for licensure…..
This method of ASD will have the following effects...