Texas Performance Bonds for Contractors
A performance bond guarantees that a contractor will complete a construction project according to the contract terms. Texas law requires performance bonds on public contracts over $25,000 under Government Code § 2253. Federal projects over $150,000 require them under the Miller Act.
Texas Performance Bond Cost
Most Texas contractors pay 0.5%–3% of the bond amount annually. A $1,000,000 performance bond typically costs $5,000–$30,000 per year depending on your financial strength, years in business, and project type.