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Texas Building Contractor Bond

What is a Texas building contractor's surety bond?

If you are a building contractor in Texas, most likely, you will be required to post a building contractor's bond in order to do business. Unlike in many other states, the authority requiring the bond is not the state government but the city or municipality in which you are working.

The surety bond is a three-party contract that provides a way for your customers to be compensated should there be a problem with your work. The three parties are the principal, the obligee, and the surety. As the building contractor, you are the principal; the governmental entity requiring the bond is the obligee; and the company providing the bond is the surety.

Get your TX Building Contractor's Bond. 

Not a contract bond

Please note that the building contractor's bond is a contractor license bond, not a contract bond. Contract bonds are specific to one project and are usually only required when working on large projects. 

Why do I need a building contractor's bond in Texas?

State and municipal governments generally require a surety bond as a means of protecting those who receive services from professionals. If the principal violates the terms of the surety contract and a claim is upheld, damages may be paid to the injured party up to the full amount of the bond. As the principal who posted the bond, you would then be required to pay that amount.

How much do TX building contractor bonds cost?

There is a wide variation in bond coverage amounts, which can vary from as little as $1,000 to $50,000 or more, depending on the city or municipality requiring you to post a bond. As an example of what your cost could be if your municipality requires you to post a $25,000 building contractor's bond, the annual premium could be as little as 0.5%, or $125.

Your premium quote will depend on your personal credit score as well as your business experience and financial history.

Get a TX Building Contractor's Surety Bond.

Qualifying for a building contractor's surety bond

It's quick and easy to apply to NNA Surety Bonds for your Texas building contractor's bond. Simply use the online form, or call us at the number below.

Whether you are ready to apply or if you need more information about Texas building contractor's bond requirements, we'll be happy to talk with you. Just call NNA Surety Bonds at 855-575-1063.

Related: Can you be bonded with bad credit?

What are some building contractor's license requirements in Texas?

Since Texas does not license building contractors at the state level, you will have to apply to the city or municipality where you will be working. Let the experienced professionals at NNA Surety Bonds guide you. Give us a call at 855-575-1063.

The Simple Bonding Process

View your price or request a free quote
Discover unbeatable value with coverage options tailored to your needs.
Sign your contract and pay the premium
Seal the deal and ensure protection and peace of mind for your business.
Receive your surety or fidelity bond
Expect a speedy turnaround. Our typical turnaround time is 24 hours or less.
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