Texas Payment Bond
A Texas payment bond guarantees that a prime contractor will pay subcontractors, laborers, and material suppliers on a construction project. Texas Government Code §2253.021 requires payment bonds on all public contracts over $25,000. Typically issued alongside a performance bond.
When is a Texas Payment Bond Required?
- Texas public contracts over $25,000 (Tex. Gov't Code §2253)
- Federal contracts over $150,000 (Miller Act)
- Private projects requiring lien protection