(913) 214-8344 [email protected]

What is a Performance Bond in Texas?

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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) 225-8501. 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 [email protected]

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 [email protected] or fax to 866-594-2771.

You can also call us at 913-225-8501. 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.

Discovering Important Factors When Looking At Contract Performance & Payment Bonds

You will need to know that a Contract Performance & Payment Bond is essential for anyone, but this is complex if you don't know anything about it. This is not an insurance claim since this is a form of assurance that the principal will adequately do their job. You have to understand that some folks will require you to get a particular bond before they actually opt for your services because it will probably be a type of assurance to them. They require this kind of thing from you so you should look for an insurance company which will provide this to you. If you actually want to consider a license bond, permit bond, commercial bond and more, you have to understand what it means.

The Significance Of A Contract Performance & Payment Bond

Contract Performance & Payment Bonds are always in demand because they protect the public. It is a type of guarantee that the obligations and duties will be completed. You should get a license Contract Performance & Payment Bond to ensure that your company will adhere to the laws and you normally get a contract bond to assurance that a public project will probably be completed. A Contract Performance & Payment Bond is certainly meant for the obliged as they are the ones which are being protected, but it will also benefit you since the clients will trust you in case you have this. There are a lot of bonds today and the kind of bond that you would like to consider would depend on the situation.

How Does This Particular Type of Bond Work?

Contract Performance & Payment Bonds are a three-party agreement between a surety company, the principal and the obliged. The principal is actually the employer or company which will carry out the work while the obliged is generally known as the project owner.

Construction businesses will be required by the law to have their Contract Performance & Payment Bonds if they are chosen for a public project. Once the government requires a construction company to do something, the winning contractor should obtain a host of bonds.

The bond will guarantee that the sub-contractors and other workers would be paid even when the contractor defaults. The contractor would be accountable in addressing the losses, but as soon as they reached the limit, the duty will fall to the surety company.The contractor will cover the losses, but as soon as they actually reached the limit, the duty will really fall to the surety company.

The Application For A Contract Performance & Payment Bond

Contract Performance & Payment Bonds are actually offered by insurance companies, but you can always look for standalone surety businesses that would concentrate on these products. It will not be simple to apply for a bond as the applicant will have to experience a rigid procedure that is comparable to applying for a loan. The bond underwriters will certainly assess the financial history of the applicant, their credit profile and other key factors to assurance that they will be approved. It also means that you have a chance of being denied for a Contract Performance & Payment Bond, particularly when the underwriters saw something bad on your credit history.

The Price Of A Contract Performance & Payment Bond

There's no specific cost for a Contract Performance & Payment Bond because it will depend on a number of reasons like the bond type, bond amount, where the bond will be issued, contractual risk, the credit score of the applicant and many more.

There are lots of bonds right now and the cost will depend upon the kind of bond that you could actually obtain. The amount of the bond may also be a factor because you can get a $10,000 bond or a $25,000 bond.

If you have a credit score of above or near 700, you'll qualify for the standard bonding market and you'll only pay a premium that's 1 to 4 percent of the Contract Performance & Payment Bond amount. If you are going to actually get a $10,000 bond, it will surely cost around $100 to $400.

The Chance Of Being Denied

There is a chance that your license and permit bond request will actually be refused by the insurance providers and it will invariably depend on their background check. If they believe that providing a bond to you will likely be a big risk, they won't release a Contract Performance & Payment Bond for you.

Credit history is also an issue because if you have a bad credit score, it will likely be extremely tough for you to get a Contract Performance & Payment Bond as the businesses consider you as a risk. In case you have a bad credit rating, you can still be approved for the bond, but you are going to pay an interest rate of 10 to 20 percent.

There's a possibility that your application will be refused so check all the requirements before you apply.

If you actually want to get your Contract Performance & Payment Bond, you will need to ensure that you will understand the process so you won't make a mistake. It won't be simple to apply, but if your requirements are complete and you are eligible, you may get a Contract Performance & Payment Bond.