Frequently Asked Questions (FAQ)
Bond Amount ranges from $100.00 to $100,000.00. Standard Rate is 1.50% per year; 3.00% per year; 10.00% per year; with a minimum premium of $100.00.
Mobile Area Water & Sewer System Bond in Alabama
Mobile Area Water & Sewer System Bond in Alabama
The Mobile Area Water & Sewer System (MAWSS) bond is a financial guarantee required for most contractors operating in this field in Alabama. This bond protects consumers and government agencies from fraud, breach of contract, or other issues associated with water and sewer system contractors.
What Does Mobile Area Water & Sewer System (MAWSS) Do?
Mobile Area Water & Sewer System (MAWSS) is a utility service responsible for providing clean drinking water and safe wastewater management to Mobile, Alabama, and surrounding areas. Their mission is to manage, operate, and maintain water and sewer systems while ensuring high-quality service for residents and businesses. The organization also handles infrastructure construction and modernization to maintain efficient water supply and sewage disposal.
MAWSS monitors water quality, conducts routine maintenance, and repairs pipelines, pumping stations, and other key infrastructure elements to prevent accidents, leaks, and contamination, ensuring public health and safety.
Example: Boris’s Collaboration with MAWSS
Boris owns a construction company specializing in water system upgrades. MAWSS contracted Boris to replace old water pipes in residential areas that were prone to frequent leaks. Boris’s team diagnosed the issues and replaced outdated pipes with durable materials.
His work involved coordinating with local authorities and residents to minimize disruptions. Thanks to Boris’s expertise, the project was completed on time, providing residents with improved water service without further issues.
Boris continues to work with MAWSS on other projects, contributing to the city’s water and sewer system modernization.
Key Points about the Mobile Area Water & Sewer System Bond
- License Requirement: Contractors must provide this bond as part of the licensing process for water and sewer work in Mobile, Alabama.
- Consumer Protection: If a contractor commits fraud or violates contract terms, consumers or the state of Alabama can file claims against the bond for compensation.
- Bond Amount: The bond amount typically ranges between $10,000 and $100,000, with the contractor paying a portion of this as a premium.
- Contractor Obligations: Contractors must comply with all regulations governing water and sewer work. Non-compliance may result in claims against the bond.
How Much Does the MAWSS Bond Cost?
The bond premium varies based on the contractor’s business type and credit score, typically ranging from 1.5% to 10% of the bond amount.
Example:
Boris, a contractor installing water systems, obtained a bond for working with MAWSS. However, he failed to complete a water installation project, resulting in a claim against his bond, and he lost his right to work with MAWSS.
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FAQs
What is the MAWSS Bond?
It is a financial guarantee ensuring that consumers are protected from potential breaches of contract by contractors.
How Much Does the Bond Cost?
The cost ranges from 1.5% to 10% of the bond amount, based on the contractor’s creditworthiness.
Why is the Bond Required?
The bond is mandatory for obtaining a license to perform water and sewer work in Mobile, Alabama.
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Execution Notes
Bond must have an original signed Attorney in Fact signature.
Filing Method
Executed bond must be filed with the obligee by agent/principal.
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