What is the City of Fort Worth Street and Storm Drain Contractors Bond, and Who Needs It?
Contractors must obtain this bond before performing construction on the city’s streets, and storm drains.
This bond assures against financial loss due to the actions of contractors working on the city’s streets and storm drains. The three parties involved in this bond are as follows:
- The principal, or bondholder, who is the contractor obtaining the bond
- The obligee, which is the City of Fort Worth’s Department of Development
- The surety company, which is the issuer of the bond and the guarantor of the performance of the bondholder contractor
Much like an insurance policy, a surety company bond will compensate covered losses up to the bond amount. But unlike an insurer, a surety company will expect reimbursement for the settlement cost from the contractor to whom the bond was issued.
Requirements
Contractors applying for this bond must provide the following:
- A license application form (if a new contractor business)
- A licensing fee of $500
- Proof of liability insurance in the amount of $10 million, with the City of Fort Worth named as certificate holder and insured
Cost
The bond amount, which reflects the coverage limit (also commonly known as the penalty), is $25,000. The cost of obtaining this bond is just $125.
Bond Purchase Process
1. Find Your Bond
2. Secure Pricing
3. Buy Online
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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
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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!