Texas laws often require contractors to obtain specific bonds, on top of their workers' compensation and general liability insurance policies. Sometimes, contractors are not always clear on why they need both bonds and insurance. At Contractors Mark, we specialize in contractor’s bonds, and we want to provide you with the information you should know about the differences between bonds and how to get all the coverage you need for your Texas business.
What Is a Contractor’s Bond?
Contractor bonds protect consumers by requiring service providers to comply with all state and federal laws and regulations governing their profession. Therefore, securing your Texas business with a contractor bond helps your clients feel confident that you are a safe choice for the job.
Contractors Bonds are used by municipalities and large construction projects to protect themselves and others if you walk off a job, or do not perform the job as expected in the time expected. Contractors Mark can help you get the bonds you need to win bids and contracts and provide any county and city bonds as necessary.
Though the state of Texas does not mandate all contractors to be bonded, many individual cities and municipalities require contractors to post surety bonds. If you plan to complete work for the county or state, you will most likely also need to obtain one or more bonds.
Types of Contract Bonds
Count on Contractors Mark to help you secure the proper bond for your construction project. We can help you place your performance bonds, maintenance bonds, bid bonds, and labor and material bonds. Each type of bond performs a valuable service to both the contractor and client and provides protection in the case of an unforeseen issue. Here’s a brief explanation of the differences between these bonds.
- Performance bonds guarantee that you will complete the work according to your contract with a client. They are required for work on most federal and municipal projects and large commercial projects.
- Maintenance bonds are typically included with performance bonds and protect your clients against defective and shoddy workmanship and materials.
- Bid and proposal bonds are often required for work on municipal projects, and the successful bidder on the project must be able to present a performance bond. If the lowest bidder does not do so, the proposal bond covers the difference between the successful bid and the next lowest bidder that qualifies for the project.
- Labor and material bonds guarantee your business will be responsible for paying the labor and material costs for the projected scope of the project.
The Contractors Mark Difference
The Contractors Mark team has been helping contractors in Texas since 2000. We specialize in contractors insurance, making us the premier choice for contractor bonds. We are here to answer questions and provide superior support to our valued clients, and you’ll notice the difference when you choose Contractors Mark. Call us today or fill out our online form to request your contractor bond quote.