SECTION 158:50-5-3. Bond and insurance requirements

(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.

[Source: 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; Amended at 31 Ok Reg 920, eff 9-12-14; Amended at 32 Ok Reg 1636, eff 9-11-15; Amended at 35 Ok Reg 925, eff 10-1-18; Amended at 36 Ok Reg 1420, eff 10-1-19]