You can now apply online for a Texas Performance Bond - it only takes three (3) minutes! (Yep, we timed it.) Click here:
Or you Can download our Express Performance Bond Application (click to download form)
- Complete the form and email to gary@swiftbonds.com
- Be sure to include the Contract and Notice of Award letter (bid specs from the obligee).
- Send the bid results if you have them
What is a Performance Bond in Texas?
A performance bond is a three party contract that is issued by a surety (typically an insurance company, but could be an individual) as a guarantee that one party will perform according to the terms of the contract.
How do I get a Performance and Payment Bond in Texas?
We make it easy to get a contract performance bond. Just click here to get our Texas Performance Application. Fill it out and then email it and the Texas contract documents to gary@swiftbonds.com or fax to 855-433-4192.
You can also call us at (913) 562-6992. We thoroughly review each and every application for commercial bonds and then submit it to the surety that we believe will provide the best p & p bond for your matter. The surety broker will perform a credit check. We have a high success rate in getting our clients performance and payment bonds at the best rates possible.
P&P Bonds in Texas?
The cost of a performance bond can vary widely depending on the amount of coverage that is required. It is based on the total amount of the contract. Things that can affect this pricing are the perceived risk of the job, the financial position of the entity being bonded, plus other factors.
Bond prices fluctuate based on the job size. In general, the cost is approximately three percent (3%) for jobs under $800,000 and then the percentage is lower as the contract amount increases. We work diligently to find the lowest premiums possible in the state of Texas. Please call us today at (913) 562-6992. We'll find you the very best rate possible for your maintenance bond or completion bond.
| Bond Amount Needed | Fee |
| <$800,000 | 2-3% |
| >$800,000<$1,500,00 | 1.5-3% |
| >$1.500,000 | 1-3% |
These rates are for Merit clients, Standard rates are higher
Just fill out our bond application here and email it to gary@swiftbonds.com
Find a Performance Bond near Me
What is a Payment Bond? Is it included with the Performance Bond? A payment bond is a bond that assures that the subcontractors and material vendors are paid. The payment provides that if the subcontractors are not paid timely and they make a valid claim, then the surety will pay them (and then collect and try from the general contractor).
What is a payment and performance bond? What is a contract bond?
Typically, a payment and performance bond are done together in the same contract by the surety. This way, the owner of the project is assured that the project can be completed pursuant to the terms of the contract and that it will not be liened by any contractor. The bond is performance security for the benefit of the owner.
Who Gets the Bond?
The general contractor is the entity that gets the bond. It is for the benefit of the owner (or in the case of government contract work, the governmental entity). It's the general contractor that has to apply for the bond and be underwritten before the performance and payment bond is written by the surety. This is also known as bonding a business.
How to Get a Performance Bond in TX
Just call us. We’ll work with you to get the best Texas bond possible.
We provide performance and payment bonds in each of the following counties:
Anderson
Andrews
Angelina
Aransas
Archer
Armstrong
Atascosa
Austin
Bailey
Bandera
Bastrop
Baylor
Bee
Bell
Bexar
Blanco
Borden
Bosque
Bowie
Brazoria
Brazos
Brewster
Briscoe
Brooks
Brown
Burleson
Burnet
Caldwell
Calhoun
Callahan
Cameron
Camp
Carson
Cass
Castro
Chambers
Cherokee
Childress
Clay
Cochran
Coke
Coleman
Collin
Collingsworth
Colorado
Comal
Comanche
Concho
Cooke
Coryell
Cottle
Crane
Crockett
Crosby
Culberson
Dallam
Dallas
Dawson
Deaf Smith
Delta
Denton
DeWitt
Dickens
Dimmit
Donley
Duval
Eastland
Ector
Edwards
Ellis
El Paso
Erath
Falls
Fannin
Fayette
Fisher
Floyd
Foard
Fort Bend
Franklin
Freestone
Frio
Gaines
Galveston
Garza
Gillespie
Glasscock
Goliad
Gonzales
Gray
Grayson
Gregg
Grimes
Guadalupe
Hale
Hall
Hamilton
Hansford
Hardeman
Hardin
Harris
Harrison
Hartley
Haskell
Hays
Hemphill
Henderson
Hidalgo
Hill
Hockley
Hood
Hopkins
Houston
Howard
Hudspeth
Hunt
Hutchinson
Irion
Jack
Jackson
Jasper
Jeff Davis
Jefferson
Jim Hogg
Jim Wells
Johnson
Jones
Karnes
Kaufman
Kendall
Kenedy
Kent
Kerr
Kimble
King
Kinney
Kleberg
Knox
Lamar
Lamb
Lampasas
La Salle
Lavaca
Lee
Leon
Liberty
Limestone
Lipscomb
Live Oak
Llano
Loving
Lubbock
Lynn
McCulloch
McLennan
McMullen
Madison
Marion
Martin
Mason
Matagorda
Maverick
Medina
Menard
Midland
Milam
Mills
Mitchell
Montague
Montgomery
Moore
Morris
Motley
Nacogdoches
Navarro
Newton
Nolan
Nueces
Ochiltree
Oldham
Orange
Palo Pinto
Panola
Parker
Parmer
Pecos
Polk
Potter
Presidio
Rains
Randall
Reagan
Real
Red River
Reeves
Refugio
Roberts
Robertson
Rockwall
Runnels
Rusk
Sabine
San Augustine
San Jacinto
San Patricio
San Saba
Schleicher
Scurry
Shackelford
Shelby
Sherman
Smith
Somervell
Starr
Stephens
Sterling
Stonewall
Sutton
Swisher
Tarrant
Taylor
Terrell
Terry
Throckmorton
Titus
Tom Green
Travis
Trinity
Tyler
Upshur
Upton
Uvalde
Val Verde
Van Zandt
Victoria
Walker
Waller
Ward
Washington
Webb
Wharton
Wheeler
Wichita
Wilbarger
Willacy
Williamson
Wilson
Winkler
Wise
Wood
Yoakum
Young
Zapata
Zavala
And some of the cities we’re in:
Houston
Dallas
Austin
San Antonio
Forth Worth
El Paso
Arlington
Waco
Corpus Christi
Lubbock
College Station
Ensure project success with our contract performance bond—secure your investment and mitigate risk today! See our Utah Performance Bond page here.
Differences Between Performance Bonds and Bank Letters of Credit
In our experience, one of the most significant distinctions between performance bonds and bank letters of credit lies in the nature of the financial guarantee each provides. Performance bonds are surety bonds issued by a surety company that guarantees a contractor will complete a project according to the contract terms. If the contractor fails, the surety company compensates the project owner. On the other hand, bank letters of credit are issued by financial institutions and act as a direct guarantee of payment, usually upon presentation of specific documents. We’ve come to the conclusion that while both instruments provide protection, performance bonds are more focused on ensuring project completion, whereas letters of credit ensure payment for services or goods.
Are Performance Bonds Refundable?
We’ve often noticed that performance bonds are generally non-refundable. When a performance bond is issued, the premium paid to the surety company is considered earned upon issuance. This is because the surety company is taking on the risk from the moment the bond is in place. We’ve come across situations where contractors may ask for a refund if the project is canceled or completed early, but based on our experience, refunds are rarely granted. The reasoning behind this is that the surety has already provided the financial backing, and the risk, even if minimal, remains until the bond is formally released.
What Happens if a Claim is Filed on a Performance Bond?
In our observation, when a claim is filed on a performance bond, it can trigger a series of investigations by the surety company. We’ve seen firsthand that the surety will typically assess whether the claim is valid, which involves reviewing the contract terms, the work completed, and any reasons provided for the claim. If the claim is found to be legitimate, the surety may step in to pay for the completion of the project, up to the bond's limit. Our experience tells us that this process can be complex, often leading to negotiations or even legal disputes, depending on the circumstances of the claim.
When are Performance Bonds Released?
We’ve learned through doing that performance bonds are typically released once the project has been completed to the satisfaction of all parties involved. This usually includes fulfilling all contractual obligations and passing any required inspections. In our professional life, we’ve often found that the bond release process can take some time, as it involves confirming that no claims are outstanding and that all aspects of the project have been satisfactorily addressed. We’ve consistently observed that the final release of the bond provides reassurance to the contractor that their obligations have been met and that the surety’s involvement in the project is concluded.
What is a 100 Percent Performance and Payment Bond?
We’ve had the chance to work on projects that required a 100 percent performance and payment bond, and we’ve observed that this type of bond offers comprehensive protection for project owners. In our view, a 100 percent bond means that the bond covers the full value of the contract for both performance and payment. This ensures that the contractor not only completes the project as agreed but also pays all subcontractors, suppliers, and laborers. We’ve come to appreciate the security this provides to project owners, as it minimizes the risk of financial loss due to contractor default or non-payment issues.
How Long Does It Take to Get a Performance Bond?
We’ve encountered situations where obtaining a performance bond was time-sensitive, and we’ve found that the timeframe can vary depending on several factors. In our dealings with surety companies, we’ve noticed that the process can take anywhere from a few days to several weeks. Factors influencing this include the complexity of the project, the contractor's financial standing, and the thoroughness of the underwriting process. We’ve often noticed that contractors who have an established relationship with a surety company or who have a strong financial history can obtain bonds more quickly, sometimes within a day or two.
What Happens if a Performance Bond Expires?
We’ve been in the position where a performance bond was approaching its expiration date, and we’ve learned that if a performance bond expires before the project is completed, it can lead to significant issues for all parties involved. In our understanding, the expiration of a performance bond does not automatically release the contractor from their obligations. We’ve seen firsthand that project owners might require an extension of the bond, and if the bond is not renewed or replaced, the contractor could be in breach of the contract. Our experience has taught us that it’s crucial to monitor bond expiration dates closely and to take proactive steps to renew or replace them as necessary to avoid potential disputes or project delays.
See more at our Mississippi Performance Bond page.
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