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Contract Surety Bonds or Bid Bonds in Texas

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A contract is the result of a solicitation procedure where entities and individuals can bid on a service, construction project or goods. The process often involves a bid bond or bid letting form, entry to a vendor registration system, and could have other requirements. The links below provide more details to various contract processes.

Contract Surety Bonds are a requirement by most federal government agencies, local municipalities, counties, universities or private entities. The process generally begins with a bid process and if awarded the contract, a contract surety bond or performance and or payment bond (as an example a TXDot contract) may be required.

Typical Contract Bonds:

  1. Bid Bond: A surety prequalifies the contractor is eligible to bid on the project. The bond is a confirmation that if the contractor is the low bidder, the surety can issue the payment and or performance bonds.
  2. Performance Bond: Ensures the contractor will perform the terms of the contract, which includes staying within budget, finishing the project by a deadline and possibly other terms within the contract.
  3. Payment Bond: A payment guarantee to subcontractors, laborers, suppliers.
  4. Supply Bond: A guarantee to supply goods or materials within a specific timeline as specified in the contract.
  5. Maintenance Bond: A guarantee of material workmanship for a specified time period after a project is completed.
  6. Proposal Guarantee Bond: A term for Bid Bond.

How Much Will This Bond Cost?

The premium that you pay for a Texas Contract Surety Bond will vary and is dependent on business and personal financial statements, scope of work, work on hand, the amount of the project, experience and other conditions.

Did You Know?

The Small Business Administration has a Bond Guarantee Program to help small business contractors bid on a project.

Related Links:

Small Business Association Bond Guarantee Program
Texas Statewide Contracts
Texas Department of Transportation - Contract Letting
Texas Comptroller of Public Accounts - Search Open Bid and Procurement Opportunities

More Surety Bond Questions?

Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.


For a downloadable application