Texas Contractor License Bond

Texas Contractor License Bond

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What is an Texas Contractor License Bond? 

Texas Contractor License Bond's are required by Texas's Department of Commerce and Consumer Affairs to obtain your Texas Contractor License Bond. The Texas Contractor License Bond amount is set at $25,000 or $50,000. 

The State requires a Contractor License bond for :  

a $5,000 surety bond


Different parts of a bond:

 There are 3 parts to a Contractor License surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the Contractor License Surety Bond. The Obligee is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.

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Texas Contractor License Bond Information and Requirements:

THE CONDITION OF THE ABOVE OBLIGATIN IS SUCH that, whereas the Principal is engaged or intends to

engage in the business of contracting or subcontracting for the erection, alteration, repair, removal, demolition, use and

occupancy of buildings, or construction of buildings, structures, and systems, or the installation and maintenance of

Electrical, Gas, Mechanical, Plumbing, Irrigation or Fire systems, as provided in Chapter 18.02 of the EI Paso City Code.

NOW THEREFORE, the Principal and its agents, employees, and subcontractors shall comply with all provisions,

rules and regulations of the EI Paso City Code which have been or may be hereafter established by the City of EI Paso,

and shall pay any damages which are sustained by the City or by the person for whom the work is done which are caused

by failure of the principal, its agents, employees, or subcontractors to comply with the EI Paso Building, Mechanical,

Electrical, Plumbing, Gas, Irrigation or Fire Codes, and shall indemnify the city against all claims arising out of such failure

to comply, then this obligation shall be void, otherwise to remain in full force and effect. Provided, however, that any suit

against this bond or the Principal therein shall be filed within two years after completion of the work in connection with

which the violation occurred.

IT IS FURTHER UNDERSTOOD AND AGREED that the Surety may at any time terminate its liability by giving

thirty days written notice to the Building Official, EI Paso, Texas, and the Surety shall not be liable for any loss after the

expiration of thirty days except for losses occurring while this bond is in full force and effect.

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