Street And Storm Drain Bond
Serving Dallas, Fort Worth, Carrollton, Arlington, Austin, El Paso, Houston, San Antonio, Irving, Plano, Grand Prairie and throughout Texas
Street and storm drain bonds are required in some states for any contractors who are working on or near public streets. Contractors are required to obtain a street and storm drain bond prior to applying for a construction license.
The purpose of the street and storm drain bond is to protect the state from any damages that incurred due to contractors making errors or failing to follow regulations during the construction process. Damages to streets and storm drains can be expensive and create negative consequences for citizens of the surrounding area. Street and storm drain bonds protect the state from these costs and increase contractor compliance.
How It Works
Street and storm drain bonds are contracts between the obligee, principal, and the surety. The bond issuer is the surety which puts up the bond. The principal is the contractor who pays premiums to the surety in order to apply for a construction license. The state is the obligee, since it is mandating the purchase of the street and storm drain bond.
In the event that the contractor is found at fault whether it is due to a mistake or some violation of the regulation, the surety will reimburse the state up to the value of the bond. Thus, the surety must do its due diligence to ensure that the contractor will follow regulations. The contractor also has a financial incentive for compliance.
How Prices Are Calculated
The total value of the street and storm drain bond is determined by your state and local municipality. This value depends on the amount of work being done. The bond issuer charges a premium to contractors for the bond. The bond issuer determines this figure by examining the contractor’s claim history, experience, credit score, and financial situation.
How To Purchase A Street And Storm Drain Bond
At TMD Surety Bonds, we work with multiple providers to help you find the best product for your needs. Due to our experience, volume, and relationships, we can find the best prices.
We only work with the most reputable surety providers and have simplified the entire process so you can focus on what matters - your business. We are known for our exceptional customer service and fast turn around time.