(A)   No person, firm or corporation or other entity engaged in services or contracting for services governed by the Plumbing Code shall be issued a permit under this chapter until the person has made, executed and delivered to the City Secretary a good and sufficient bond in an amount at least equal to the sum shown on the contract for the work by the person, but in no case for a sum less than $3,000 payable to the city, with corporate surety authorized to do business in the state and conditioned for the faithful performance of all work entered upon or contracted for, and in strict accordance and compliance with the terms, requirements and provisions of the Plumbing Code; and conditioned further that the person shall without additional cost to the person for whom the work is done, remedy any defects therein due to faulty workmanship or material. That the person shall reconstruct or repair the work to the satisfaction of the Inspector within 72 hours after notice of the inspection and findings by him or her.
   (B)   Upon five days written notice to the principal of the bond and to the City Secretary, the surety on the bond shall have the privilege of canceling any such bond. Cancellation of any bond shall not cancel or reduce the surety's liability on any transaction begun before 12:00 noon on the effective date of a cancellation. The bond shall contain a provision stating the substance of this requirement of notice of cancellation.
   (C)   The city may for itself, or for the use and benefit of any person injured or damaged by reason of failure to repair any defective installation, fitting or construction in connection therewith, or for failure or refusal to pay any of the fees required by the plumbing code, maintain suit on the bond, or suit may be maintained thereon by any person so injured.
   (D)   All bonds shall be for a period ending the next ensuing December thirty-first, and should the coverage of any such bond be reduced by recovery, or for any other reason, the surety on the bond shall immediately notify the City Secretary. The principal will not be issued for any permit provided for herein until the coverage of the bond is fully restored.
('78 Code, § 6-82) (Ord. 277, passed 5-14-74)
Statutory reference:
   Plumbing License Law, see Tex. Rev. Civ. Stat., Art. 6243-101