What is a Building Contractor's Bond?
The city of Abilene’s Department of Building Inspection requires the purchase of a contractor’s bond for several different contractor categories. These contractor and license bonds are required to ensure compliance with regulations and ordinances at the federal, state, and local levels and to protect the public and city from damages incurred by contractors who fail to abide by these regulations.
Amarillo requires building, roofing, demolition, and building moving contractors to purchase a $25,000 surety bond. For swimming pool contractors, the required amount is $10,000. Sign contractors are required to obtain a $3,000 bond. Finally, irrigation contractors have the option to purchase a $5,000 surety bond or have a minimum of $300,000 in general liability insurance.
How Does a City of Abilene Contractor's Bond Work?
The city of Abilene contractor’s bond ensures that the interests of the contractor and the city of Abilene are aligned and that all regulations and codes are followed. It also protects the city and the public from non-compliance. The city of Abilene contractor’s bond requires that contractors follow the construction regulations in Chapter 8 of the Abilene Municipal Code.
This reduces the risk of public and/or private property damage because it gives contractors a financial obligation to comply with regulations, stay up to date with tax payments, and meet other requirements. It also makes it easier for the city to collect claims on any damages.
This is because it creates a contract between three parties:
- The principal is the contractor who purchases the surety bond.
- The obligee is the city of Abilene, which mandates the purchase of the bond.
- The surety is the insurance company that guarantees the bond and will settle any valid claims against the principal.
In addition to being necessary to bid on and receive contracts, the city of Abilene contractor’s bond also benefits contractors because it leads to increased trust among all parties and ensures greater regulatory compliance throughout the entire industry.
Pricing & Terms
Surety bond costs are a percentage of the full bond amount, which is usually determined by your personal credit. Providing industry experience, strong personal credit, and business/personal financials will help lower your bond rate. Reach out for a quote today.
How to Purchase
- Click the Buy Now button.
- Fill out the easy bond form.
- Confirm your order and select how you would like your bond documents delivered. Email or regular mail.
- Pay for your bond.
- If you chose to have your documents emailed, you will receive them within minutes
It’s that simple and fast!
Bond Purchase Process
1. Find Your Bond
2. Secure Pricing
3. Buy Online
Get Started
The bonding process can be confusing and cumbersome. Our surety bond experts are standing by and ready to answer any questions. Let’s get you bonded today!
Frequently Asked Questions
There are hundreds of different bonds for all kinds of purposes—but regardless the industry or project—they all operate essentially the same way. A surety bond guarantees that you will operate professionally and if you break the rules, a claim can be made on your bond which you’re responsible to pay.
It’s a guarantee that you will complete the work and fulfill your contractual obligations. Think of it as insurance for the public, not your business.
For the most part, yes. Bad credit can increase rates for license and permit bonds and most can also get approved for fidelity bonds regardless of credit. For contract bonds, larger contractors with poor credit can be approved with strong CPA-prepared business financials.
You must fulfill the terms of the bond obligations, which vary immensely depending on bond type. Where you obtain your surety bond is important when it comes to understanding claims and avoiding them entirely. If you have any questions about what your bond does or doesn’t guarantee, reach out to our experts to help guide you along the way.
It’s a legally binding contract that you must sign to obtain a surety bond. The agreement guarantees that if you cause bond claims you will pay them in full.
Looking to Get Started or Have Questions?
The bonding process can be confusing and cumbersome. Our surety bond experts are standing by and ready to answer any questions. Let’s get you bonded today!