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Construction Bid Bond

Texas Construction Bid Bond

Secure Texas public and private bid guarantees

Texas bid bonds guarantee the bidder will enter the contract and furnish required payment - performance bonds if awarded.

Apply for this bond

Or call (877) 477-7578

Overview

What Is a Texas Construction Bid Bond?

A bid bond is a surety guarantee that the principal will honor its bid and provide final contract bonds when required.

Key Provisions
  • Guarantees compliance with Tex. Gov't Code ch. 2253 (related public construction bonding)
  • Protects the obligee named on the Texas bond form
  • Remains subject to the penal sum and bond conditions
Surety Obligation Overview

What Does This Bond Guarantee?

The surety bond guarantees that the principal will perform the duties required under Tex. Gov't Code ch. 2253 (related public construction bonding) up to the penal sum.

Principal
The party required to obtain the bond and perform the underlying obligation.
Obligee
Project owner named in the bid documents
Surety
The company issuing the bond and guaranteeing the obligation to the obligee.

When a claim may arise

A claim may arise if the principal fails to comply with the bonded Texas obligation or causes covered loss to the obligee or protected parties.

If a claim is valid

If a claim is valid, the surety may pay up to the bond penalty according to the bond terms; the principal remains liable to reimburse the surety.

Scope of the Obligation
  • Comply with Tex. Gov't Code ch. 2253 (related public construction bonding)
  • Satisfy Project owner named in the bid documents filing conditions
  • Maintain the bond for the required term
Bond terms

Bond summary

Amount, premium, term, and the authority that requires this filing.

Eligibility

Who Needs This Bond?

Contractors bidding Texas public works or private projects that require bid security.

Who Is Required to File
  • Applicants required by Project owner - Texas public agency
  • Texas businesses renewing or expanding licensed activity
  • Out-of-state firms filing into Texas markets
Requirements

What You Need to Apply

Match the invitation-to-bid penal sum percentage and form language exactly.

Required Documentation
  1. Legal entity name matching the license or filing
  2. Bond amount: Usually a percentage of the bid amount set by the invitation to bid
  3. Texas obligee form or statute citation
  4. Owner or officer identification for underwriting
Filing

How this filing works

  1. 01

    Confirm the Texas requirement

    Share your license type, court order, or obligee form and the exact penal sum required by Project owner - Texas public agency.

  2. 02

    Underwrite and price

    We review credit and filing details, then quote premium options through licensed surety markets.

  3. 03

    Issue and file

    Once approved, we issue the bond for delivery to Project owner named in the bid documents or for your Texas filing package.

FAQ

Frequently Asked Questions

What is the required amount for a Texas construction bid bond?

The amount is Usually a percentage of the bid amount set by the invitation to bid, as set under Tex. Gov't Code ch. 2253 (related public construction bonding) and confirmed with Project owner - Texas public agency.

Who is the obligee on a Texas construction bid bond?

The obligee is typically Project owner named in the bid documents. Always match the exact name on the Texas form.

How long does it take to get the bond?

Many Texas filings can be underwritten the same day when documents and credit are complete; complex amounts may take longer.

Does bad credit prevent approval?

Not always. Premium and collateral options vary by credit and bond size — ask for markets that still write the risk.

How do I renew the bond?

Most bonds renew on the term shown (1 Year). Keep continuity so your Texas license or filing does not lapse.

Next step

Ready to file this bond?

We’ll match the requirement and route the application.

Apply for this bond

Or call (877) 477-7578