Sign Builder Bond
Serving Dallas, Fort Worth, Carrollton, Arlington, Austin, El Paso, Houston, San Antonio, Irving, Plano, Grand Prairie and throughout Texas
A sign builder bond is required in many states in order to receive permission to build or repair a sign. The bond is protection for the state that the contract will abide by all local ordinances while they work. If the contractor fails to do so, then the bond issuer is responsible for any restitution up to the value of the bond.
The bond issuer can cancel the bond at any time with a 30-day notice in writing. However, the bond issuer remains liable for payments up to the cancellation date. The sign builder bond is valid for one year.
How Sign Builder Bonds Work
Sign builder bonds are a contract between the contractor, the state, and the bond issuer. The state is the obligee since it is mandating the purchase of the bond. The contractor is the principal who is required to purchase the bond. The bond issuer is the surety.
The principal pays a premium to the surety who puts up the full amount of the bond. The surety decides on an appropriate premium depending on the total bond amount and their evaluation of the contractor. In the event of the contractor being found at fault for violation of regulations, the state can collect payment from the surety. Therefore, the surety has a strong incentive to only back contractors who will follow all local ordinances when building or repairing signs.
How Price Is Calculated
The total value of the sign builder bonds is determined by municipalities. Premiums are some percentage of this amount. Premiums can vary by magnitude depending on the surety's assessment of the contractor. Some of the variables that affect the premium are the contractor's credit score, claims history, and experience.
How To Purchase A Sign Builder Bond
We take great pride in offering the best service to our customers. We have formed relationships with multiple surety providers to match you with the best product at the best price for your needs. Apply Here and let us take care of the rest.
We offer fast approval and immediate turnaround. Get in touch with us today!