(913) 214-8344 gary@swiftbonds.com

What is a Performance Bond in Texas?

where to buy a performance surety bond image

How much does a Performance Bond Cost 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.

How much do bonds cost in TX?

Bond prices fluctuate based on the job size. The cost of a bond is estimated through a couple of back-of-the-envelope calculations.  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%
>$1.500,0001-3%

These rates are for Merit clients, Standard rates are higher

Just fill out our bond application here and email it to gary@swiftbonds.com

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.

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 Cities:
Houston
Dallas
Austin
San Antonio
Forth Worth
El Paso
Arlington
Waco
Corpus Christi
Lubbock
College Station

See our Utah Performance Bond page here.

What Is The Rate Of A Performance Bond 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 the rate are the perceived risk of the job, the financial position of the entity being bonded, plus other factors.

How Best To Think Of Surety Bonds

Surety bonds could be quite complex to understand, specifically if you don't know how they actually work, or have never had to deal with them before. Most individuals look at this as insurance, but it is a wholly different financial product. This is a type of guarantee that the principal will perform their work properly. Insurance businesses can provide a surety bond, but it isn't insurance because its function is different. Many people will require you to get a surety performance bond because they will trust your services because this is a type of guarantee to them.

If you would like to obtain a performance bond, you must know how they work. We will offer some information on the significance of surety performance bonds in the following paragraphs.

An Explanation On Surety Performance Bonds

Surety performance bonds will be asked for by the public in a lot of situations since it will secure them from risk and it will guarantee that the principal would fulfill their duties. As the principal, you must obtain a license surety bond to guarantee that your company will adhere to the laws and you need a contract bond to make certain that a public construction project will be completed.

This is made for the consumers because they will be protected by the bond, but it could also provide benefits to you because they will trust you when you have this type of bond covering a project.

How It Works

Performance bonds are considered as a three-party agreement between a surety company, the obliged and the principal. The principal is the employer or company which will offer the services and the obliged is the project owner. Construction companies are typically required to purchase contract performance bonds if they are considering a public project. The government will also require the construction company to secure several bonds if they truly want to be considered for the project.

The primary function of a payment bond is for the sub-contractors and workers to make sure that they will be paid even if the contractor defaults. The contractor will cover the losses, but when they reach their limit, the duty will fall to the surety company.

The Application For A Surety Performance Bond

These bonds are provided by insurance businesses, but you may want to look for standalone surety organizations that only concentrate on these products. They know the finer workings of them and can ensure you get the exact bond you need. It won't be easy to apply for a bond since the applicant will have to go through a strict process that is very similar to when you are applying for a loan. The bond underwriters will review the financial history of the applicant, their credit profile and other key factors to make certain that they qulify to be approved. This also means that there is a chance you will be denied, especially if the underwriters finds something negative on your credit history.

How Much Are You Going To Spend For This?

There is no fixed rate as it depends upon numerous variables like the bond type, bond amount, where the bond will probably be issued, contractual risk, credit score of the applicant and more. There are many bonds available today and the cost will depend on the type that you need. The amount of the bond is not much of an issue because you can get a $10,000 bond or a $25,000 bond. If you have a credit history that is above or near 700, you may qualify for the standard bonding market and your rate will be about 1 to 4 percent of the performance bond amount. If you are applying for a $10,000 bond, it will only cost $100 to $400.

Your Application Could Be Rejected

There is a chance that your performance bond request will be denied by the surety company because it will depend on the results that they will get from the background check. If the surety company thinks that it would be a risk for them to issue a surety bond, they will deny your application. Your credit score is one of the most important factors to be accepted for a performance bond because if you have a bad credit history, this shows the underwriter you are a risk.

You can obtain a performance bond even if your credit rating is bad, but you'll pay an interest rate of 10 to 20 percent.

If you have a need to apply for a performance bond, you need to understand the process so you won't make a mistake. It will not be simple to apply, but if your requirements are complete and you are eligible, you can obtain a surety bond.


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