Surety Bond Encyclopedia

Building Contractor's ($75,000) Bond - City of Abilene, TX in Texas

Brief Summary

Abilene asks building, roofing, demolition and building mover contractors for a $75,000 bond before it registers them, which is far higher than most Texas cities. You pay a premium on the bond rather than tying up $75,000, and the same bond also covers you if you install signs.

The City of Abilene, Texas requires a $75,000 Building Contractor's bond from building, roofing, demolition and building mover contractors working in the city. The bond runs to the City of Abilene on the city's own form and guarantees the contractor's faithful observance of the city's codes and ordinances, including Chapter 8, Construction Regulations, of the Municipal Code. Along with the bond, the city asks for a copy of the contractor's driver's license.

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How to Apply for a Building Contractor's ($75,000) Bond:

Confirm you are registering as a building, roofing, demolition or building mover contractor.
Download the City of Abilene Building, Roofing, Demolition and House Moving bond form.
Have the business name exactly as it will be registered with Abilene Inspection Services.
Owner or principal name, address and Social Security number for the credit review.
Complete the bond application, pay the premium and have the surety execute the city form.
File the bond and a copy of your driver's license with Abilene Inspection Services, 555 Walnut Street.

Detailed Information About the Texas Building Contractor's ($75,000) Bond:

Which trades post the $75,000 bond

Abilene's contractor requirements sheet lists the $75,000 bond for four trades: building, roofing, demolition and building mover contractors. Other trades have different requirements. Electrical and plumbing contractors show state licenses and $300,000 in general liability insurance, swimming pool contractors post a $10,000 bond, irrigation contractors post a $5,000 bond or $300,000 in liability insurance, and sign contractors post a $3,000 bond.

What the bond guarantees

The city's bond form names the City of Abilene, a municipal corporation located in Taylor and Jones Counties, as obligee. It guarantees the contractor's faithful performance and observance of the city's codes and ordinances, including Chapter 8, Construction Regulations, of the Municipal Code. If the contractor violates them, the surety must provide remediation or restitution up to $75,000. The contractor repays the surety for any claim it pays.

Term, renewal and cancellation

The bond runs for the dates shown on the form and can be kept in force each year with a continuation certificate from the surety. The surety may cancel on 30 days' written notice to the City of Abilene, but cancellation does not wipe out liability that has already built up.

A bonus for sign work

Abilene accepts a $75,000 surety bond carried by a registered building contractor in place of the separate $3,000 sign contractor bond.

Eligibility and Requirements for a Texas Building Contractor's ($75,000) Bond:

City of Abilene, Texas named as obligee on the city's bond form.
Bond amount of $75,000.
Condition tied to the city's codes and ordinances, including Chapter 8, Construction Regulations.
Annual continuation certificate to keep the bond in force.
Owner credit review, which drives the premium rate. At this bond size, underwriters may also review business financials.

Texas Building Contractor's ($75,000) Bond FAQs:

Which contractors need the $75,000 bond in Abilene?

Building, roofing, demolition and building mover contractors, according to the city's contractor requirements sheet.

Does this bond cover sign installation too?

Yes. Abilene accepts a $75,000 surety bond carried by a registered building contractor as a substitute for the $3,000 sign contractor bond.

How is the bond renewed?

The city's form allows the bond to continue for another year when the surety executes a continuation certificate.

Can the surety cancel the bond?

Yes, with 30 days' written notice to the City of Abilene. Liability that accrued before cancellation remains.

How is the premium set?

The surety prices the bond from the $75,000 amount and the owner's credit, and may look at business financials at this size. Apply to see your actual rate.