Texas Contractor License Bond
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How much does a Texas contractor bond cost?
Various cities and contractor classifications in Texas require contractors to post surety bonds prior to completing work. The cost of a Texas contractor bond varies because many cities and counties in Texas have their own license and permitting requirements. Many Texas contractor bonds can be issued instantly, while others are subject to underwriting consideration. The cost will be dependent upon the applicant’s credit. Applicants should verify their required bond amount with the city and/or government entity in charge of licensing and registration for their classification prior to bonding.
Purchasing your Texas contractor bond is easy when you work with the experts at SuretyBonds.com! Select the bond you need from the table to get bonded today.
What is a Texas contractor license bond?
Contractor license bonds protect the city/state and/or any individual harmed as a result of the principal’s noncompliance from financial loss up to the full amount of the bond. The principal must reimburse the surety for all damages paid out. All Texas contractor bonds have unique terms, so applicants should be sure that they understand the fine print of their surety bond contracts during the bonding and licensing processes.
Contractor bonds in Texas are put in place to ensure that principals (contractors) complete construction work in accordance with the laws of the city/state such as adhering to all building codes, paying taxes as they are due, and any other obligations specified by law.
Texas contractor bonding requirements
It is possible you may need to apply for licenses and/or permits for the city you work in. However, not all cities have the same requirements, so it is important to know what this contractor bonding process looks like for you.
- You might have additional insurance or bond requirements — some cities require that you have general liability insurance coverage. Other cities may require that you have minimum liability insurance coverage in addition to a construction bond.
- Most cities require an annual registration fee of at least $100, as well as a renewal fee. The cost is dependent upon the type of license or permit. However Houston, for example, does not require a contractor license registration or renewal fee. Other fees solely depend on the type of work and the city in which the contractor is applying.
- For some cities, it is important to keep in contact with the Community Development Department. Most Texas contractors need to be registered with the department in person prior to issuance of permits.
Need a surety bond for a construction project?
Payment bonds, bid bonds and performance bonds are often required for specific construction projects. No matter the state, SuretyBonds.com can get you the bond you need for your next job.
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