Question 1

Do general contractors need a bond in Texas?

Accepted Answer

Many Texas cities require general contractors to post a surety bond as a condition of their local contractor license or building permit. Texas does not have a statewide general contractor license — bonding requirements are set by individual cities and counties. Common Texas cities that require contractor bonds include Dallas, Houston, Austin, San Antonio, and Fort Worth. Bond amounts typically range from $10,000 to $25,000.

Question 2

How much does a Texas general contractor bond cost?

Accepted Answer

Texas general contractor license bonds typically cost $75–$250 per year depending on the bond amount and your credit profile. Most qualified contractors pay under $150/year for a standard city license bond. Quantum Surety issues same-day contractor bonds with instant PDF delivery accepted by Texas city licensing departments.

Question 3

What is the difference between a contractor bond and contractor insurance?

Accepted Answer

A contractor surety bond protects your clients and the government from financial harm caused by contractor misconduct, failure to complete work, or license violations. General liability insurance protects your business from property damage, injury claims, and other losses on the job. Most Texas cities require contractors to carry both a license bond AND general liability insurance as conditions of licensure.

Question 4

Which Texas cities require a general contractor bond?

Accepted Answer

Many Texas cities require general contractor bonds including Dallas, Houston, Austin, San Antonio, Fort Worth, El Paso, Corpus Christi, Lubbock, and Amarillo. Requirements vary by city — some require bonds only for specific license types or above a certain project value threshold. Contact your city's Development Services department to verify the exact bond requirement for your trade.