Contractor’s License Bond, City of Galveston

City of Galveston

What Is a City of Galveston Contractor’s License Bond?

As a general contractor in Texas, you don’t need a license to work in the state, but you may need to register with the county or city where you plan to work. In the coastal city of Galveston, you have to purchase a surety bond for a minimum of $25,000 and submit proof of it with your registration application. This bond helps prevent fraud and other illegal practices in the state, as it guarantees your performance, ability, and integrity as a contractor.

In addition to the surety bond, you must pay a registration fee and provide proof of liability insurance when you submit the application. The city does require first-time applicants to submit original documents and list the city of Galveston or Assignee as the obligee. You can turn in computer-generated documents only if you are already a contractor in the city’s system.

How Does a City of Galveston Contractor’s License Bond Work?

A contractor’s license bond is an agreement between three parties:

  • The contractor (also called the principal)
  • The surety company
  • The organization that requires the bond (also called the obligee)

The contractor pays the surety company a fee in exchange for the bond. If you’re unable to complete the job you agreed to do, the surety bond company may find another contractor to complete the work or pay the obligee the amount of the bond. In the city of Galveston, $25,000 is the pre-determined amount.

A surety bond is not a form of insurance, and it does not protect you or offer coverage against loss and damage. Instead, it’s an assurance to the local government that you will do the job you agreed to do and will follow all local laws and construction codes.

City of Galveston Contractor’s License Bond Details

To purchase a Galveston contractor’s license bond, complete the application and provide the following information:

  • Effective date
  • Business structure
  • Contact information

You can choose to receive digital copies of the bond document via email or paper documents through regular mail.

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Contractor’s License Bond, City of Galveston

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$25,000.00

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