What are Payment Bonds?
Texas payment bonds are sureties taken out in the construction industry to ensure that contractors compensate their subcontractors, material suppliers, and laborers in a timely fashion. These bonds are usually obtained by contractors or subcontractors prior to the commencement of a construction project.
In Texas, payment bonds also ensure that payments comply with state and federal regulations. They offer legal recourse for subcontractors and suppliers. If a contractor has failed to pay subcontractors, suppliers and laborers can file a claim against the payment bond and be compensated accordingly.
Purchasing Your Payment Bond
1. Click the Buy Now button.
2. Fill out the easy bond form.
3. Confirm your order and select how you would like your bond documents delivered. Email or regular mail.
4. Pay for your bond.
5. If you chose to have your documents emailed, you will receive them within minutes.
It’s that simple and fast!
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.
Claims Against Payment Bonds
Of course, you should always avoid claims against your payment bonds. However, if you find you have trouble paying subcontractors and suppliers, contact your surety bond agent to ask questions and prepare for potential claims.
If someone does try to file a claim against your payment bonds, the supplier, contractor, or laborer must file a notice within a certain timeframe of the work being completed. If they fail to do this, then claim may be rejected outright. This timeframe varies between federal projects and other public projects.
When a successful claim is made, then the surety will compensate all claimants who were not paid by the contractor that obtained the bond. Payment bonds are a safety net to ensure everyone gets paid. Once the surety has paid the claimants, then the contractor must pay back the surety. Choose a surety bond company you trust to work with you in difficult situations!
It’s simple to begin the process of getting your Texas payment bonds. First, use the form below to apply for a quote. Depending on the situation and the bond amount, you may need to submit additional documentation later. If you have any questions, please free to call us at 855.590.8550 and speak to our surety bond experts!
Texas payment bonds are often required along with performance bonds.
It’s simple to begin the process of getting your Texas payment bonds. First, use the form below to apply for a quote. Depending on the situation and the bond amount, you may need to submit additional documentation later. If you have any questions, please free to call us at 855.590.8550 and speak to our surety bond experts!
Texas payment bonds are often required along with performance bonds.
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 most bonds, you can get instantly approved and print bonds at your home or office. However, we do not offer instant approvals for a select number of bonds, as the underwriting process generally involves a more extensive review of the applicant.
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!