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Introduction
From our perspective, contractors and business owners in Indiana working with the District Council 91 of the International Union of Painters and Allied Trades (IUPAT) must meet specific bonding requirements before engaging in projects that involve unionized labor. One such requirement is obtaining the District Council 91 of Int'l Union of Painters - Wage and Fringe Benefits ($25,000) Bond.
This bond guarantees that employers fulfill their financial obligations, including wages, benefits, and contributions to union funds. It helps protect union members and ensures that contractors comply with collective bargaining agreements (CBAs).
Why This Bond Is Required
We’ve noticed that contractors sometimes misunderstand the purpose of this bond. Some assume it is insurance for employee injuries or a business liability policy. In reality, this bond is a financial guarantee ensuring that union workers receive agreed-upon wages, health benefits, and retirement contributions.
This bond is mandatory for businesses employing union painters and allied trades workers under District Council 91’s jurisdiction. If an employer fails to pay wages or benefits, the union can file a claim against the bond to recover those funds.
Failing to obtain this bond can result in project delays, legal disputes, and financial penalties. Contractors who do not comply may be prohibited from working on union projects and risk their business reputation and future contracts.
How This Bond Protects Workers and Employers
Based on our experience, this bond provides key protections for all parties involved in a contract.
- Union Members – Guarantees that employees receive their full wages, pension contributions, and benefits as outlined in the collective bargaining agreement.
- Contractors – Demonstrates financial responsibility and compliance with union agreements, allowing businesses to bid on high-value projects.
- District Council 91 – Ensures that employers honor their financial commitments, keeping the union’s financial structure stable.
By securing this bond, contractors show that they are reliable business partners and committed to fair labor practices.
How to Obtain the District Council 91 Wage and Fringe Benefits Bond
What we’ve discovered is that contractors and businesses can obtain this bond through a licensed surety provider like Swiftbonds by following these steps:
- Verify the Bond Requirement – Confirm with District Council 91 the bond amount required based on the number of employees and contract terms.
- Choose a Reputable Surety Provider – Work with a licensed surety company that specializes in wage and fringe benefits bonds.
- Complete an Application – Submit business financial details, company history, and credit background.
- Receive a Quote – The bond cost depends on the contractor’s credit score and financial stability.
- Submit the Bond to District Council 91 – Once issued, the bond must be filed with the union before work begins.
- Renew as Required – This bond must be maintained for as long as the contractor is working under a union agreement.
Consequences of Not Having This Bond
In our observation, failing to secure this bond can have serious consequences:
- Legal and Financial Penalties – Contractors who fail to pay wages and benefits may face legal claims, fines, and lawsuits.
- Loss of Work Opportunities – Without this bond, employers may be ineligible for union contracts.
- Business Reputation Damage – Contractors who fail to meet obligations risk losing future clients and facing negative industry reputation.
By obtaining the District Council 91 of Int'l Union of Painters - Wage and Fringe Benefits ($25,000) Bond, contractors protect their business interests and maintain compliance with labor agreements.
Advantages of Holding This Bond
Holding this bond provides several benefits for contractors and businesses working with unionized labor:
- Legal Compliance – Ensures contractors meet the financial requirements outlined in the collective bargaining agreement.
- Financial Security – Protects union members from unpaid wages and benefits.
- Stronger Business Reputation – Demonstrates commitment to ethical labor practices.
- Expanded Work Opportunities – Allows contractors to bid on major union projects.
Other Bonds Contractors May Need
Contractors working on multiple projects in different locations may also need additional bonds, including:
- City of Richmond, IN - Electrical Contractor ($5,000) Bond – Required for electrical contractors operating in Richmond, Indiana.
- IBEW Local No. 16 - Wage and Welfare Bond – A bond for electrical contractors employing unionized electricians under Local 16’s jurisdiction.
Conclusion
We’ve come to appreciate that the District Council 91 of Int'l Union of Painters - Wage and Fringe Benefits ($25,000) Bond is more than a requirement—it is a financial safeguard that protects union workers, ensures contractor compliance, and strengthens trust between labor and employers.
By securing this bond, contractors demonstrate professionalism, financial responsibility, and commitment to fair labor practices. Additionally, those working in different areas may need other bonds, such as the City of Richmond, IN - Electrical Contractor ($5,000) Bond or the IBEW Local No. 16 - Wage and Welfare Bond.
Swiftbonds offers fast approvals and competitive rates for this and other Indiana contractor bonds.
Frequently Asked Questions
Who needs the District Council 91 Wage and Fringe Benefits Bond?
Contractors and businesses that hire union painters and allied trades workers under District Council 91 must obtain this bond.
How much does this bond cost?
The cost depends on the contractor’s financial history and credit rating. Premiums generally range from 1% to 5% of the bond amount.
How long is this bond valid?
This bond remains active as long as the contractor is working under a collective bargaining agreement with District Council 91. It must be renewed as required by the union.
What happens if a claim is filed against the bond?
If a contractor fails to pay wages or benefits, the union can file a claim. The surety will investigate, and if the claim is valid, the surety will compensate the union up to the bond amount. The contractor must then repay the surety company.
Where can contractors find more information?
Contractors can check these sources:
- District Council 91 Union Office – For bonding requirements and collective bargaining agreement details.
- Indiana Department of Business & Professional Regulation (DBPR) – For state licensing regulations.
- Indiana Legislature’s official website – For state labor laws and contractor requirements.