contractor holding his bid documents for tender date


Texas consumers and companies want to be treated well. They’ll search long and hard for a service provider to make sure that they get what they want. Furthermore, they want to be protected to the fullest.

The United States surety industry is expected to reach $25 billion by 2027. This proves that Texas companies expect to be protected by surety bonds. If you’re going to run a successful construction business in Texas, you need to know more about bonds.

In particular, you need to learn as much as you can about bid bonds. This is one of the most important bonds in the construction industry. This bond will be explored in greater depth below.


Bid bonds are commonly used in the construction industry as it provides the obligee with a guarantee that the job will be completed at the stated prices. To bid for a project, it is a must to obtain a bid bond first. If there are no bid bonds, the obligee has no guarantee that the contractor has the financial resources required to complete the project.


When it comes to construction surety bonds, you will find that there are tons of them. However, some are more common than others. The bid bond happens to be one of the most important because it is obtained before the project begins. This means that many companies will need to obtain a bid bond for the same project.

In most cases, only one company will move forward and be asked to obtain a performance bond.

The bid bond needs to be submitted alongside your initial bid. This bond ensures that the client is going to be protected. It allows the client to stay away from potentially shady companies. It also protects them from frivolous bids and companies that are not financially sound. With the bid bond, the client knows that they’re going to be working with a reliable company. Otherwise, they’ll be able to find a claim against the company and seek compensation.

Once you’ve obtained a bid bond, you can go ahead and submit your bid. Stokes Surety Bonds can help Texas companies connect with surety agencies, so they can obtain bid bonds quickly.


The purpose of bid bonds is to protect the client from start to finish. When preparing for a project, the client wants to make sure that they’re working with reliable companies. They want to go above and beyond to choose companies that will fulfill their obligations on time. While anything can happen, bid bonds protect the client from potential problems. This decreases the likelihood that the client is going to end up dealing with a company that defaults on its obligations.

If this happens, the client has a way to seek compensation. That may not be possible without the bid bond. The bid bond shows that the construction company is financially sound and eager to please.


The bid bond is required in most cases. Some people may believe that it is a nuisance but there are good reasons for the bid bond. It is essential and helps protect many parties. Furthermore, you have to understand that you will not be accepted for the project unless you’ve obtained the bid bond before submitting your bid. Otherwise, your bid will not be accepted. The bid bond is required when bidding on federal projects. Furthermore, many private entities will require you to obtain this bond too.

The bond is required because it gives the client added peace of mind and protection. Without this bond, unqualified companies could bid on the project and that would create major issues for the client and legitimate contractors. So, the bid bond protects your company and your clients.


Bid bonds are an essential component of any construction project. The potential client wants reassurance that you’re going to get the job done right. They want to be positive that you’re going to fulfill your obligations. This is where the bid bond enters the picture. This bond guarantees that the winner will honor the terms of their bid after they’ve signed the contract.

There is always a risk that the contractor is going to fail to honor the terms. The client wants to make sure that they stand a chance. When the contract is broken, the client will need to find another contractor. They will likely pick the next lowest bidder. Either way, they will be able to use the bid bond to obtain compensation from the initial contractor.

The bid bond holds the contractor accountable. The client can file a claim against the bond to seek compensation. In many cases, the surety agent will sue the contractor to recover the money they’ve spent. However, their actions will depend on the bond’s terms.

To learn more about this in detail, please take a look at how does a bid bond work?


The costs  of bid bonds in Texas can vary. With that being said, one construction company will likely pay more or less for a bid bond. Many bid bonds come with flat fee premiums ranging from $100 to $200. For big projects, the contractor will likely pay a percentage of the total project cost as well as the penal sum of the bond.

A handful of factors will be considered when determining how much the contractor will be asked to pay. These factors include the project’s location, the owner, and the company’s financial history. Maintaining a good history can make a big difference for your construction company. It is important to note that things can be very different for contractors with no previous surety bonding history.

To learn more about the costs in detail, please take a look at the following links:

   Cost of Bid Bonds

   Rates of Bid Bonds

   Asking Price of Bid Bonds


The turnaround time for bid bonds in Texas is extremely low. When you want to submit a bid on a project, you should search for reliable surety agents. Once they’ve done that, they will be able to submit the necessary paperwork and request a bid bond. It is wise to consult with the experts at Stokes Surety Bonds because they can point you in the right direction.


Once your bid has been accepted, you will need to work swiftly to secure the project. The client will want you to obtain a performance bond. Depending on the project in question, you may also need a payment bond. There are various bonds used in the construction industry. They include bid, payment, performance, maintenance, and supply bonds. In some cases, you will need all of them but this is rare. Usually, you will need one or more bonds but not all of them.

The three most common construction bonds include bid, performance, and payment bonds. At the very least, you should familiarize yourself with these bonds and their purposes. This will help ensure that you’re ready to begin serving Texas clients and making money in the Texas construction industry. If you have any questions, you should not hesitate to call Stokes Surety Bonds. A professional will be eager to help.


Whether you’re dealing with a bid bond or performance bond, you need to do your best to avoid claims. This could create major issues for your business. When claims are filed against performance bonds, your company’s reputation will be hurt. You need to go above and beyond to satisfy your clients. You must work diligently to get the job done quickly and efficiently. Furthermore, it is wise to consult with the client regularly.

Let them know what is happening and where things are going. Keep them informed, so they will know that progress is being made. If you believe you cannot complete the project before the deadline, you should tell them. There is likely time to save the relationship, but you need to be honest with your client. Being open and honest can help prevent claims from being filed against your bonds.