Rocky Mount HVAC and Plumbing Contractor Bond: A Comprehensive Guide

May 26, 2022

Rocky Mount HVAC and Plumbing Contractor Bond

This guide provides information for insurance agents to help their customers obtain a Rocky Mount HVAC and Plumbing Contractor bond

*Important Note: Contractors that solely act as either a plumbing or HVAC contractor, and not both, only have to purchase a $1,000 bond.

At a Glance:

  • Average Cost: $100 per year
  • Bond Amount: $2,000
  • Who Needs it: HVAC and Plumbing Contractors operating in Rocky Mount, North Carolina that are billed for their permits on a monthly basis
  • Purpose: To ensure the city will receive compensation for financial harm if the contractor does not faithfully perform all of their duties
  • Who Regulates HVAC and Plumbing Contractors in Rocky Mount: The Rocky Mount Inspection Services Division

Background

Rocky Mount Code of Ordinances 5-81 requires all HVAC and plumbing contractors operating in the city to obtain a permit with the Inspection Services Division before beginning work on a job. The Rocky Mount City Council enacted the permit requirement to ensure that HVAC and plumbing contractors engage in ethical business practices. To provide financial security for the enforcement of the permitting requirement, HVAC and plumbing contractors that choose to be billed monthly for their permits, as opposed to paying daily inspection fees, must purchase a $2,000 surety bond to be eligible for a permit.

What is the Purpose of the Rocky Mount HVAC and Plumbing Contractor Bond?

Rocky Mount requires HVAC and plumbing contractors that are billed monthly for their permits to purchase a surety bond as part of the application process to obtain a permit. The bond ensures that the public will receive compensation for financial harm if the contractor fails to abide by the regulations outlined in Rocky Mount Code of Ordinances 5-67. Specifically, the bond protects the public if the contractor abandons a job or is negligent in their work. In short, the bond is a type of insurance that protects the public if the HVAC or plumbing contractor does not faithfully perform their duties.

Rocky Mount HVAC and Plumbing Contractor Bond Form

Rocky Mount HVAC and Plumbing Contractor Bond Form

How Can an Insurance Agent Obtain a Rocky Mount HVAC and Plumbing Contractor Surety Bond?

BondExchange makes obtaining a Rocky Mount HVAC and Plumbing Contractor bond easy. Simply log in to your account and use our keyword search to find the “Rocky Mount” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

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Is a Credit Check Required for the Rocky Mount HVAC and Plumbing Contractor Bond?

A credit check is not required for the Rocky Mount HVAC and Plumbing Contractor bond. Because the bond is considered relatively low risk, the same low rate is offered to all HVAC and plumbing contractors in Rocky Mount regardless of their credit history.

How Much Does the Rocky Mount HVAC and Plumbing Contractor Bond Cost?

The Rocky Mount HVAC and Plumbing Contractor bond costs just $100 per year.

Who is Required to Purchase the Bond?

Rock Mount requires all heating, ventilation, air conditioning, refrigeration, and plumbing contractors that wish to be billed monthly for their permits, as opposed to paying daily inspection fees, to purchase a surety bond as a prerequisite to obtaining a permit.

To paraphrase North Carolina Statute 87-21, a plumbing contractor is a person that, as an independent business, installs or repairs pipes and fixtures that serve to supply water and transfer sewage from a building. Additionally, an HVAC contractor installs or repairs heating, ventilation, air conditioning, and refrigeration systems within a building.

How do HVAC and Plumbing Contractors Apply For a Permit in Rocky Mount?

HVAC and plumbing contractors in Rocky Mount must navigate several steps to obtain a permit. Below are the general guidelines, but contractors should refer to the city’s permit application instructions for details on the process.

Step 1 – Obtain a State License

North Carolina requires HVAC and plumbing contractors to obtain a statewide license before accepting jobs. To obtain an HVAC and plumbing contractor license, contractors must apply through the North Carolina State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors.

To be eligible for licensure, contractors must:

    • Have at least 4,000 hours of relevant experience
    • Purchase the required books
    • Submit a completed exam application, including all required fees, to the following address:

State Board of Examiners of Plumbing
Heating and Fire Sprinkler Contractors
1109 Dresser Court
Raleigh, NC 27609-7302

Contractors seeking to perform refrigeration related work must obtain a license from the North Carolina State Board of Refrigeration Contractors and can do so by mailing an exam application to the following address:

State Board of Refrigeration Examiners
1027 US Highway 70 West, Suite 221
Garner, North Carolina 27529

Contractors must pass the required exam once their application has been approved.

Step 2 – Register the Business

Rocky Mount Code of Ordinances 5-66 requires HVAC and plumbing contractors to register their business with the Inspection Services Division before applying for a permit. To register their business, demolition contactors should contact the division at (252) 972-1109 or stop by their office between the hours of 8:30 – 9:30 am or 4:00 – 5:00 pm, Monday through Friday, located on the second floor of City Hall.

Step 3 – Complete the Application

All Rocky Mount HVAC and Plumbing Permit applications should be faxed to (252) 972-1590 or emailed to [email protected]. Contractors must complete the application in its entirety, and pay all required fees.

Step 4 – Purchase a Surety Bond

HVAC and Plumbing contractors that choose to be billed monthly for their permits must purchase and maintain a $2,000 surety bond

Do Plumbing and HVAC Contractors in Rocky Mount Need to Renew Their Permits?

No, HVAC and plumbing contractors in Rocky Mount do not need to renew their permits. However, contractors must apply for a new permit for each job they undertake. Additionally, HVAC and plumbing permits will typically expire 6 months from the date of issuance if no work has been completed at that point or if work has been halted for a period of 12 months.

What are the Insurance Requirements for HVAC and Plumbing Contractors in Rocky Mount?

Rocky Mount does not require HVAC and plumbing contractors to purchase any form of liability insurance as a prerequisite to obtaining a permit. However, most reputable contractors will purchase this insurance anyway. HVAC and plumbing contractors that are billed on a monthly basis for their permits must purchase a $2,000 surety bond.

How Do Rocky Mount HVAC and Plumbing Contractors File Their Bonds?

Contractors should submit their completed bond forms, including the power of attorney, to the Inspection Services Division on the second floor of City Hall.

The surety bond requires signatures, as well as witness signatures, from both the surety company that issues the bond and the contractor. The surety company should include the following information on the bond form:

  • Legal name and address of entity/individual(s) buying the bond
  • Surety company’s name and state of incorporation
  • Date the bond is signed

What Can Rocky Mount HVAC and Plumbing Contractors Do To Avoid Claims Bonds?

To avoid claims on their bonds, HVAC and plumbing contractors in Rocky Mount must adhere to the terms of their permits, including some of the most important issues below that tend to cause claims:

  • Do not breach contracts made with consumers
  • Perform adequate work
  • Repair all damage caused to city infrastructure

What Other Insurance Products Can Agents Offer Rocky Mount HVAC and Plumbing Contractors?

Most reputable HVAC and plumbing contractors will purchase liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

How Can Insurance Agents Prospect for Rocky Mount HVAC and Plumbing Contractor Customers?

North Carolina provides a public database of active HVAC and plumbing contractors in the state (see here for a list of refrigeration contractors). We also suggest contacting the Inspection Services Division to obtain a list of active contractors in the city. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

2022-10-21T09:54:22-04:00