Current through Vol. 42, No. 1, September 16, 2024
(a)
Bond.
(1) A corporate surety bond, (the "bond") in
the sum of five thousand dollars ($5,000.00) payable to the Oklahoma
Construction Industries Board and approved by the Administrator shall be
permanently deposited with the Bonds and Insurance Unit prior to the issuance
of the mechanical contractor's license.
(2) Said bond shall be executed by the
applicant for the contractor's license and by a surety authorized to do
business in the State of Oklahoma, and shall be a continuous bond with a thirty
(30) day cancellation notice to the Board.
(3) Said bond shall be in lieu of filing a
bond with each municipality where the contractor works and shall be conditioned
upon all of the following terms:
(A) The
mechanical contractor, his or her agents and employees shall faithfully and
properly conduct business in compliance with all the applicable provisions of
ordinances and provisions of the municipality in which he is performing
mechanical work;
(B) The mechanical
contractor shall pay all fines and penalties imposed by courts of competent
jurisdiction for the violation of said ordinances or provisions. The Board may
seek payment through the surety bond of any fines or penalties, which the
licensee fails to pay.
(C) The
mechanical contractor shall protect, save harmless and indemnify the
municipality and the State against any liability imposed by law against said
municipality or State for the negligence of said contractor, his or her agents
or employees, which arises from any act or omission of said individuals engaged
in work pursuant to the Mechanical Licensing Act;
(D) Any person aggrieved may bring an action
upon the bond for the recovery of the penalty thereof to the same extent and
with equal rights as though such aggrieved person had been named as the obligee
in the bond.
(b)
Insurance. A mechanical
contractor shall provide proof of financial responsibility by providing a
certificate of insurance, which indicates a minimum general liability policy of
$50,000. The Construction Industries Board must be notified in the event such
liability policy is cancelled for any reason or expires for non-payment of
premiums. Mechanical contractors are to add the Construction Industries Board
to the certificate of insurance as a certificate holder but not as an
additional insured and with no additional cost to ensure required notification.
(c)
Exceptions. The
bond and insurance requirement will be waived if:
(1) The mechanical contractor wishes to be
inactive. A contractor may choose to place his or her license on inactive
status and may practice as a journeyman but shall not practice as an active
contractor. The inactive contractor can obtain an active license at any time if
his or her license is valid and the bond and insurance requirements are met;
or
(2) The mechanical contractor is
employed by a corporation, partnership, public entity, or political subdivision
and said corporation, partnership, public entity or political subdivision
submits an affidavit on behalf of the contractor that the employee will only
perform mechanical work on property owned by said corporation, partnership,
public entity, or political subdivision and the employer assumes all financial
responsibility in lieu of the contractor providing bond and insurance. The
affidavit must include a statement by the employer that the Board will be
notified if the contractor is no longer employed by said employer, or if the
employer no longer wishes to assume financial responsibility for the
contractor.
(d)
Requirements. Failure to provide the complete information with
current bond and insurance certificate or failure to maintain bond and
insurance will result in an inactive mechanical contractor's license being
temporarily issued until such time as the requirements are met.
Added at 19 Ok Reg 732,
eff 1-22-02 (emergency); Added at 19 Ok Reg 1276, eff 5-28-02; Amended at 21 Ok
Reg 768, eff 4-26-04; Amended at 22 Ok Reg 1061, eff 5-26-05; Amended at 25 Ok
Reg 1863, eff 6-26-08
