Question 1

What construction bonds are required in Texas?

Accepted Answer

Texas Government Code § 2253 (Texas Little Miller Act) requires both a performance bond and a payment bond on public contracts over $25,000. A bid bond is required at the bidding stage for most public projects.

Question 2

How much does a Texas construction bond cost?

Accepted Answer

Texas construction bond rates typically range from 0.5% to 3% of the contract value. A $500,000 bond usually costs $2,500–$15,000 annually.

Texas Construction Bonds