contractor holding his bid documents for tender date


Running a construction company in Texas can be profitable as long as you handle business like a pro. While there are many risks involved, you can minimize many of those by acquiring surety bonds. However, there will be times when you lose a client. The project may be ended abruptly due to funding issues.

When this happens, you may scramble to recuperate your money. Is there a chance that you’ll be able to get a refund for your construction bond? Below, you’ll learn more about the construction bond and whether or not it is refundable.  


There are many factors involved when determining whether a construction bond is refundable or not. For instance, when you first purchase a bond, it is fully-earned during the first term, and in this case, you may be ineligible for a refund. However, if the bond was never submitted to the obligee, you may qualify for either a full, partial, or pro-rated refund depending on your circumstances.

There are also other cases where you may or may not be eligible for a construction bond refund. For instance, your business is going downhill, or you purchased the wrong bond, or you don’t require a bond in the first place. As a result, it is best to speak directly with your surety company as they will be able to guide you through this process.


Construction surety bonds are used for construction projects. They’re commonly used by investors to protect against disruptions and financial loss due to a contractor being unable to complete the project on time.

Furthermore, the bond guarantees that the project’s bills will be paid in full. When submitting a construction bond, the managing party agrees to complete the job according to the requirements of the contractual policy.

 If the contractor fails to do so, the contractor and surety will be held liable. Texas construction company owners need to learn as much as possible about construction bonds because they’ll be buying and using them regularly. Working with Stokes Surety Bonds is a good way to find out what bonds you need so you can cover your bases sooner rather than later.  

To learn more about this in detail, please take a look at the summaries of construction bonds, and bid bonds & performance bonds.


When purchasing construction bonds, business owners will find out that the prices are steep. This is one of the main reasons that you’ll be interested in knowing if they’re refundable. How much are construction bonds going to cost your business? Ultimately, it is difficult to say for certain. The prices are going to vary depending on numerous factors. The overall cost of the project will prove to be one of the most important factors. 

Furthermore, the bond provider will analyze your credit score so they can determine how much you’ll need to pay. If your credit score is poor, you’ll pay more. With a poor credit score, you may receive a 3% rate on a $500,000 bond. This means that you would end up paying $15,000 for the bond.

An owner who has better credit will pay far less. It is pertinent to maintain excellent credit so you can acquire the cheapest construction bonds. In addition to this, you can work with Stokes Surety Bonds because they can help you pinpoint the cheapest bond providers.  

To learn more about the costs of different types of construction bonds in detail, please take a look at the following links:

  Cost of Bid Bonds

  Rates of Bid Bonds

  Asking Price of Bid Bonds

  Cost of Performance Bonds


Working in the construction industry can be risky. While things may be great now, they can change rapidly. You have to be ready for anything that comes your way. You may be wondering if construction bonds are refundable. Will you be able to get your money back when a project falls through? Or, are you going to be left out of luck?

The truth is that it is going to depend on numerous factors. In some cases, you will be able to get a refund on the construction bond but this may not always be the case. In some situations, you’ll be able to get your money back. Below, you’ll learn more about the cases when you can get a refund for your surety bond.  

To learn more about this in detail for different types of constructions, please take a look to see if a bid bond is refundable?


Some license bonds are refundable. However, you need to meet certain requirements first. For instance, you may obtain a bond for a specific license. If you do but never apply for the license, you can likely get your money back.

Alternatively, you may get the bond but find out that it is too expensive to get your license. You may decide that you no longer want to get the license. Again, you may be able to get a refund on the bond. You can likely get a bond refund if you bought the bond but were denied a license.

It is a good idea to consult with your bonding agent. There is a good chance that they’ll be able to help you get a refund. If you can’t get a refund, they’ll let you know. 


You may be able to get a bond refund in other situations too. For instance, there is a chance that your business is going to go downhill early on. You may get a bond only to close your business a few months later. You only used the bond for a few months. Well, you might be able to get a refund.

Also, there is always a risk that you’re going to purchase the wrong bond. If you’ve done so, you can likely get a refund so you can quickly switch it for a different bond.

Finally, you may get a bond only to find out that you didn’t need one. If this happens, you should talk to your bond provider because you can likely get a refund. Remember that you may be able to obtain a refund several years after acquiring the bond. You can never be positive so it is best to talk to your bond provider. 


Will you be able to get a refund on your construction bond? You may be able to but you might not. It will be difficult to know for certain. When purchasing a bond, it is normally “fully earned” during the first term. This means that you likely will not be able to get a refund during the first term or first year. Still, you might be able to convince the bond provider to give your money back.

 If the bond was never submitted to the obligee, you can send it back to the surety company. Depending on the company, you may receive a full or partial refund. If the bond is canceled mid-term, you may qualify for a pro-rated refund. You may decide to hold the bond for the first term and renew it.

If you try to cancel after renewing, you can likely get a pro-rated refund. It can be difficult to know if you’re going to receive a refund. It is best to speak directly to your surety agent. They’ll be able to walk you through the refund process and help you get some or all of your money back. 


You never know whether or not you can get a refund on a construction bond. However, you shouldn’t give up so easily. Depending on the circumstances and the type of bond you’re dealing with, you may be able to get a refund easily.

With that being said, it is best to contact your surety company. Your surety agent will have the answers you’re looking for. They’ll be able to walk you through the refund process so you can get some of your money back.