Oklahoma Mechanical Contractor Bond: A Comprehensive Guide

January 15th, 2021

This guide provides information for insurance agents to help contractors on Oklahoma Mechanical Contractor bonds

At a Glance:

• Average Cost: $100 per year
• Bond Amount: $5,000
• Who Needs It: All individuals and businesses seeking to obtain a Mechanical Contractor License in the State of Oklahoma
• Purpose: To ensure the public will receive compensation for any damages should the contractor fail to comply with licensing law
• Who Regulates Mechanical Contractors in Oklahoma: The Oklahoma Construction Industries Board (CIB)

Background

Oklahoma statute 158:50-1-3 requires all mechanical contractors operating in the state to obtain a license with the CIB. The Oklahoma legislature enacted the licensing laws and regulations to ensure that contractors engage in ethical business practices. In order to provide financial security for the enforcement of the licensing law, contractors must purchase and maintain a $5,000 mechanical contractor surety bond to be eligible for licensure.

What is the Purpose of the Oklahoma Mechanical Contractor Bond?

Oklahoma requires contractors to purchase the Mechanical Contractor Bond as part of the application process to obtain a mechanical contractor license. The bond ensures that the public will receive compensation for financial harm if the contractor fails to comply with the licensing regulations. In short, the bond is a type of insurance that protects the public if the contractor breaks licensing laws.

How Can an Insurance Agent Obtain an Oklahoma Mechanical Contractor Surety Bond?

BondExchange makes obtaining an Oklahoma Mechanical Contractor Bond easy. Simply login to your account and use our keyword search to find the “contractor” 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 (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.

Is a Credit Check Required for the Oklahoma Mechanical Contractor Bond?

No, a credit check is not required for the Oklahoma Mechanical Contractor Bond. Because this bond is considered relatively low-risk, the same low rate is offered to all mechanical contractors in Oklahoma.

How Much Does the Oklahoma Mechanical Contractor Bond Cost?

The $5,000 Oklahoma Mechanical Contractor Bond costs just $100 per year

How Does Oklahoma Define “Mechanical Contractor”?

To paraphrase Oklahoma statute 158:50-1-2, a mechanical contractor is an individual who performs any of the following job functions as an independent business:

• The installation, repair, maintenance, or renovation of any:
  • Heating system
  • Cooling system
  • Exhaust system
  • Mechanical refrigeration system
  • Ventilation system
  • Medical gas system
  • Medical-surgical vacuum system
  • Or any pipe carrying liquid, gas or steam

How Do Mechanical Contractors Apply for a License in Oklahoma?

Contractors in Oklahoma must navigate several steps to secure their mechanical contractor license. Below are the general guidelines, but contractors should refer to the CIB’s licensing page for details on the process.

License Period – The Oklahoma Mechanical Contractor License is valid for three years from the date of issuance and must be renewed before the expiration date

Step 1 – Determine the License Type

Oklahoma requires mechanical contractors to obtain specific licenses corresponding to the nature in which the contractor’s business operates. Below are the different types of the Oklahoma Mechanical Contractor License:

• • HVAC/R Unlimited – Performs contract work related to cooling, heating, and refrigeration systems
  • HVAC/R Limited – May only perform contract work on cooling systems with a maximum capacity of 25 tons, heating systems with a maximum capacity of 500 Btu/h per appliance, and refrigeration systems
  • Refrigeration – Performs contract work solely on refrigeration systems
  • Natural Gas Piping – Performs contract work solely on natural gas piping
  • Process Piping – Performs contract work solely on process piping
  • Ground Source Piping – Performs contract work solely on underground piping. No exam is required for this license, and contractors can access the application form here.

Step 2 – Meet the Experience Requirements

Applicants for a mechanical contractor license must have the necessary experience as required by the CIB. Contractors must meet any one of the following criteria to obtain an Oklahoma mechanical contractor license:

• • 4 years of relevant work experience
  • An associates degree or vocational diploma in a relevant field of study consisting of at least 500 hours and one year of relevant work experience
  • A vocational degree in a relevant field of study consisting of 375 hours and 2 ¼ years of work experience
  • A vocational degree in a relevant field of study consisting of 334 hours and 2 ⅓ years of work experience
  • A vocational degree in a relevant field of study consisting of 250 hours and 2 ½ years of work experience
  • Equivalent work experience while serving in the US military
  • Have a current out of state license with the same experience requirements mentioned above

Step 3 – Purchase a Surety Bond

Mechanical contractors will need to purchase and maintain a $5,000 mechanical contractor surety bond

Step 4 – Purchase Insurance

Mechanical contractors must purchase liability insurance with a minimum limit of $50,000

*Schools, hospitals, and government agencies may submit a Mechanical Affidavit requesting exemption from the bond and insurance requirements

Step 5 – Complete the Application

All mechanical contractor regulatory license applications should be mailed to:

Construction Industries Board
2401 NW 23rd, Suite 2F
Oklahoma City, OK 73107

Contractors must complete the application, including the following steps:

5.a Experience Affidavit – Contractors will need to submit affidavits filled out and signed by previous employers who can verify the contractor’s work experience

5.b Fees – Contractors must submit a $330 application fee when submitting their license application

Step 6 – Pass the Exam

Once the contractor has submitted their application, they will be able to register for and complete their license examination. Contractors can learn more about the exam requirements here.

How Does an Oklahoma Mechanical Contractor Renew Their License?

Mechanical contractors can mail their completed renewal application, including a $200 renewal fee, to the following address:

Construction Industries Board
2401 NW 23rd, Suite 2F
Oklahoma City, OK 73107

Mechanical contractors will need to complete 6 hours of continuing education each renewal period. A list of continuing education course providers can be found here.

What Are the Insurance Requirements for the Oklahoma Mechanical Contractor License?

The State of Oklahoma requires mechanical contractors to purchase liability insurance with a minimum limit of $50,000. Contractors will need to purchase and maintain a $5,000 surety bond.

How Do Oklahoma Mechanical Contractors File Their Bond With The Oklahoma CIB?

Contractors should mail the completed bond form, including the power of attorney, to the following address:

Construction Industries Board
2401 NW 23rd, Suite 2F
Oklahoma City, OK 73107

The mechanical contractor surety bond requires 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 of the entity/individual(s) buying the bond
• Surety company’s name
• The contractor’s license type

What Can Contractors Do to Avoid Claims Against the Oklahoma Mechanical Contractor Bond?

To avoid claims on the Mechanical Contractor Bond, contractors must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:

• Honor all contractual obligations when completing a project
• Do not engage in any acts of fraud
• Pay all taxes and fees

What Other Insurance Products Can Agents Offer Mechanical Contractors in Oklahoma?

Oklahoma requires mechanical contractors to obtain liability insurance. Bonds are our only business at BondExchange, so we do not issue liability 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 Oklahoma Mechanical Contractor Customers?

Oklahoma conveniently provides a public database to search for active mechanical contractors in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

What other Contractor License Bonds are Required in Oklahoma?

Contractors in Oklahoma will need to obtain specific bonds correlating with their license type. Below are all the different contractor licensing bonds required by the State of Oklahoma:

• Electrical Contractor – $5,000 bond limit
• Plumbing Contractor – $10,000 bond limit
• Septic Tank Installer – $10,000 bond limit
• Soil Profiler – $10,000 bond limit