How Long to Get a Performance Bond After a Texas Award

Texas has no single deadline for delivering a performance bond. Government Code Chapter 2253 says only that the bond comes “before beginning the work.” The owner’s documents set the day count, and in the packets we read it runs from 7 to 15 days. Getting the bond itself has to fit inside that window, which is why you get approved before bid day.

You won the job. This post starts there. If you’re still working out how to qualify, read our first-bond checklist first.

Three terms. The principal is you, the contractor. The obligee is the owner the bond protects. The surety is the insurance company that backs the bond.

How long do you have to deliver the bonds?

Owner	Clock	Starts when	Source
City of Houston	10 days	You receive the Notice of Intent to Award	Doc 00495 ¶4.0.B
Harris County	10 days	Award and receipt of the bond application form	County’s IFB template, not a construction packet. Check yours
TxDOT	15 days	Written notification of award	2024 Specifications, Item 3 §4
School districts and colleges	Packet sets it	Varies. Lone Star College: 10 days from the date of the Notice of Award	School construction bonds
Construction manager-at-risk, design-build	10 days	The contract is executed, unless other security is furnished	Gov’t Code §§2269.258, 2269.311
MUDs	Packet sets it. Seven days in the packet we read and one listing	Contract documents received	MUD bid bonds
Other cities	Packet sets it	Varies	Loc. Gov’t Code §252.044 has no day count

Check what starts your clock, not just the number. “Ten days” from a notice you receive is not the same as ten days from a form you still have to get.

A note on the 30-day county rule. Local Government Code §262.032(b) gives 30 days after signing or purchase order, and before work starts, for a county’s performance bond on contracts over $50,000. But it says it “does not apply to a performance bond required to be furnished by Chapter 2253.” Public work over $100,000 falls under Chapter 2253, so don’t count on the 30 days there.

How long does it take to get a performance bond?

There are two clocks, and only one is yours.

• Approved before you bid: once the final contract and forms are in, same-day issuance is realistic for prequalified contractors with capacity. The full packet can take longer.
• Not approved before you bid: you are doing underwriting on the owner’s clock, and the credit check, application and job review all have to fit inside the window.

We don’t print one number for first-time approval because it depends on your file. That’s the reason to start before you bid. See the first-bond checklist for what the surety needs.

From notice of award to notice to proceed

The usual order on a public job:

1. The owner notifies you. Note the date and the exact name of the notice.
2. Send us the notice, the final contract amount and the owner’s bond forms. Include alternates the owner accepted, because the bond is in the amount of the contract.
3. Sign the contract and the owner’s other forms.
4. The bonds are issued on the owner’s form.
5. Deliver the whole packet, not only the bonds.
6. The owner approves and executes.
7. Notice to proceed. Work starts.

The trap is step 5. City of Houston’s standard checklist includes the agreement, performance bond, statutory payment bond, one-year maintenance bond, insurance affidavit, proposed superintendent, Pay or Play forms and the certificate of interested parties. The bonds are only part of it. The X’s are set per project, so read yours.

Don’t start early. Each owner says so in its own way. City of Houston: the notice to proceed “establishes Date of Commencement of the Work.” Harris County’s standard requirements: no work “without a Harris County Notice to Proceed, and a purchase order.” TxDOT: “Do not begin work until authorized in writing by the Engineer.” On Chapter 2253 jobs, the bonds have to come before work begins in any case.

What to check before you deliver the bond

• The owner’s form. Outside state contracts, the bond must be payable to the awarding entity and its form approved by that entity. State contract forms are approved by the attorney general (§2253.021(e)). Some owners insist on their own: Harris County’s IFB template calls its payment bond form the “only form” it will accept.
• Names and numbers. Obligee, contract or job number, and the full contract amount.
• Power of attorney. TxDOT calls for bonds “with the powers of attorney.”
• The claim notice details. The bond or an attachment must display where to send a claim, or the Texas Department of Insurance’s toll-free number (§2253.021(f)).
• The surety. It must be authorized in Texas. Over $100,000, it must also hold a U.S. Treasury certificate of authority or have reinsurance for liability over $1 million (Insurance Code §3503.005).
• Sealed original. If the packet asks for one, tell us early. We can provide it.
• Extra bonds and steps. A maintenance bond if it’s marked. Recording, if your packet says so: Chapter 2253 has no recording rule, but Lone Star College’s terms make recording a condition of payment.

One thing the owner can’t do: require a bond from a specific surety, agent or broker (§2253.021(g)).

What if you miss the deadline?

Owner	What the documents say
City of Houston	The City “may declare award in default and require forfeiture of the Security Deposit,” and may award to the next-lowest bidder. Its standard instructions let it claim the difference between your bid and the awarded bid
Harris County	If forms aren’t returned within 10 days, the County “has the right to render the award ineffective”
TxDOT	The guaranty “will become the property of the State, not as a penalty, but as liquidated damages.” You won’t be considered for the same work unless the design substantially changes
MUDs	A bidder who “fails or refuses to furnish the payment and performance bonds required by law” forfeits the deposit (Water Code §49.271(c))

If you posted a bid bond and the surety pays, it can come to you under your indemnity agreement. See bid bond vs. performance bond for how the two connect.

If you might miss it, ask in writing, early. City of Houston’s standard procedures let the project manager grant up to 5 more days on written request. We didn’t verify an extension rule for any other owner, so don’t assume one.

When you only need a payment bond

Your first bonded job may not need a performance bond at all. Under §2253.021, a contract in excess of $25,000 needs a payment bond, or in excess of $50,000 for a city. A performance bond starts in excess of $100,000. So:

• A $60,000 school job needs a payment bond and no performance bond.
• A $60,000 city job needs a payment bond too. Check the packet for performance: Local Government Code §252.044 sets no dollar floor for a city’s public works bond.
• A $45,000 city job does not need one under Chapter 2253.

TxDOT’s Table 1 has its own bands: none under $25,000, payment from $25,000 to $100,000, both above that. An owner’s documents can ask for more. A public owner that skips a required payment bond takes on “the same liability that a surety would have” (§2253.027), which is why owners enforce it. We quote payment bonds on their own for these jobs.

After the bond is in

• Subs and suppliers may ask for a copy. On a written request, the prime has to provide the bond copies and surety details within 10 days, where §2253.024 applies.
• Unpaid claimants go to the owner. Certified copies are the owner’s job, for a person who submits the required affidavit (§2253.026).
• Send us every change order. It can change the bonded amount.

Frequently asked questions

Does Texas law set a deadline for delivering a performance bond? Not generally. Government Code §2253.021 says a public owner must require the bond before work begins on a contract over $100,000, with no day count. Chapter 2269 sets 10 days on construction manager-at-risk and design-build jobs. The owner’s documents set the days: 15 after written notice of award on TxDOT work, 10 after the Notice of Intent to Award under City of Houston standard documents, and seven in the MUD packet we read. Your packet controls.

Does the 30-day county rule apply to my job? Probably not, if it is public work over $100,000. Local Government Code §262.032(b) gives 30 days after signing for a county’s own performance bond on contracts over $50,000, but it does not apply to a bond Chapter 2253 requires. Harris County’s standard requirements use 10 days after award and receipt of the bond application form. Check your packet.

What happens if I win and cannot deliver the bonds on time? It depends on the owner. The City of Houston may declare a default, award to the next bidder and claim the price difference from your security. TxDOT keeps the guaranty as liquidated damages. A MUD keeps your deposit. If a surety pays on your bid bond, it can recover from you under your indemnity agreement.

Can I get more time? Ask in writing, right away. City of Houston’s standard procedures let the project manager grant up to 5 more days on written request. We did not verify an extension rule for other owners, so read your packet.

Will my first bonded job use up my bonding capacity? It counts against it. A surety sets a limit for any one job and a limit for all bonded work you carry at once, and a new contract uses room in both while it is open. See our guide to bonding capacity letters for how those limits show up in bid packets.

Getting a quote

Send us the award notice and packet, or better, the bid package before you bid. Call (281) 484-8320, or start an application from our Texas performance bond page. For owner-by-owner bidding steps in the Houston area, see our public bidding guide. For TxDOT, see TxDOT bid bonds.