Bid-day coverage, no premium for qualified clients.
Required on most Texas public-works projects and many private jobs. Guarantees you will honor your bid and post performance/payment bonds if awarded. Typical penalty 5%–10% of bid, issued same-day for bid openings.
- No premium on most bid bonds
- Same-day issuance for prequalified contractors
- Harris County, TxDOT, statewide
The bond that lets you bid on Texas public work.
A Texas bid bond is a surety guarantee issued to an owner or public agency before bid opening. It promises that if your bid is the winning bid, you will (1) sign the contract at the bid price and (2) deliver the required performance and payment bonds.
On Texas public-works projects, bid bonds are governed by Government Code Chapter 2253 and are a near-universal requirement for projects over $100,000. Private owners use bid bonds selectively, especially on competitive commercial and industrial work.
Most bid bonds are issued free by the surety that expects to write the subsequent performance and payment bonds. They are almost always a prequalification product, not a stand-alone transactional one.
Usually nothing — included in the surety relationship.
Bid bonds are bundled with the underlying bonding program. You pay premium on the performance and payment bonds that follow the winning bid, not the bid bond itself.
| Situation | Bid bond premium | When premium applies |
|---|---|---|
| Existing surety client Active bonding program | $0 | No charge |
| Prequalified new client Program established, first bid | $0–$100 | Small flat fee some carriers |
| One-time bid (non-client) No ongoing program | $100–$500 | Flat fee per bond |
| Forfeiture claim assessed Bidder refused contract | Full penalty | Full penalty to obligee, recovered from principal |
The real cost is the indemnity — if you win and refuse, you owe the surety up to the bid bond penalty.
Four steps, driven by prequalification.
- 01
Prequalification
Submit financial statement, WIP schedule, business history, and bank reference. Surety establishes single and aggregate bonding capacity.
- 02
Bid request
Email us the solicitation, bid amount, and opening date. We review for single-job limits, project risk, and obligee acceptability.
- 03
Bond issued
Bid bond executed on AIA A310 or obligee\'s required form. Delivered electronically or by runner before bid opening.
- 04
Award & P&P
If you win, we write the performance and payment bonds at your contract award. Bid bond obligation ends.
Statute, common forms, and common failure modes.
Texas Government Code Chapter 2253 (Public Works Performance and Payment Bonds) governs state and local public-works bidding. Local ordinances add to this — Houston, Harris County, and TxDOT each have their own bid-security rules.
Set by solicitation documents. Texas public-works projects: typically 5% of bid (the statutory minimum for many agencies). Private projects: 5–20% depending on owner preference.
AIA A310 (private work), SBD-10 (Texas SBA), federal SF-24 (U.S. government work), and custom owner forms. Form acceptability varies by agency.
Bid bond remains in force until bid is accepted or rejected — typically 30–90 days after bid opening per solicitation.
Bidder wins but refuses to sign contract at bid price, OR fails to deliver required P&P bonds within the contract\'s stipulated time. Obligee claims difference between bidder\'s price and next-lowest, up to bond penalty.
Bid day doesn\'t wait.
Houston contractor depth
We write for Harris County, City of Houston, METRO, HISD, TxDOT, and every major Texas public owner — no form surprises.
Same-day bid delivery
Runner service within Harris County, e-bid files statewide. We meet the 2pm bid opening.
Prequalified pipeline
Once you\'re set up, bid bonds are on demand — no re-underwriting every solicitation.
The bonds that follow a winning bid.
Bid bond questions from Texas contractors.
What is a bid bond?
A bid bond is a surety guarantee that if you win the bid, you will sign the contract at the bid price and post the required performance and payment bonds. If you refuse, the obligee can claim against the bid bond for the difference between your bid and the next-lowest bidder, up to the bond penalty.
How much does a Texas bid bond cost?
Most bid bonds carry no premium — they are issued free as part of the surety relationship, on the expectation that the same surety will write the performance and payment bonds if the bid wins. Some sureties charge a minimal flat fee ($100–$250) for non-clients.
What is the bid bond penalty amount?
Typically 5%–20% of the bid amount. Texas public-works projects (Gov Code Ch. 2253) and most private owners require 5% as the minimum; 10% is common on larger projects. The bond amount is set by the solicitation documents.
Do I need a bid bond for every Texas project?
No — bid bonds are required only when the invitation to bid or project specifications call for one. Most public-works projects over $100,000 require a bid bond. Private projects vary by owner preference. Smaller residential and commercial jobs usually don't require bidding bonds at all.
What happens if I win and refuse the contract?
The owner typically awards to the next-lowest bidder and claims against your bid bond for the excess cost. The surety pays the owner up to the bond penalty, then seeks reimbursement from you under the general indemnity agreement. A bid-bond claim damages your surety relationship and can make future bonding difficult.
How fast can a bid bond be issued?
Same-day issuance is standard for established clients. First-time applicants typically need a prequalification application with financials and a work-in-progress schedule — 1–3 days for underwriting review, then bid bonds on demand for approved projects.
Get prequalified for bid bonds today.
Set up once, bid all year. Harris County and statewide.