Bonding Capacity Letter: What Texas Bid Packets Ask For
What a bonding capacity letter says and doesn't guarantee, real Texas packet wording, single vs. aggregate limits, and a sample letter for your next bid.
TxDOT Proposal Guaranty
TxDOT electronic bid bonds for online lettings.
A TxDOT e-bid takes an electronic bid bond only: no check and no printed bond. The guaranty is 2% of the engineer's estimate, capped at $100,000. We issue them. Here is how it works, and what to sort out before the letting.
- Guaranty amount is on the proposal cover
- First-time clearinghouse setup can take a week
- Contract and bonds due 15 days after award notice
What it is
What is a TxDOT electronic bid bond?
It is the proposal guaranty on a bid you file through iCX, TxDOT's web-based bidding system. It guarantees TxDOT that if you are awarded the contract, you will sign it and deliver what the contract requires.
You are the principal, the contractor making the promise. TxDOT is the obligee the bond protects. The surety is the insurance company that backs it. What makes this bond different is the delivery. Item 2 §8.2 of TxDOT's 2024 Standard Specifications says: "Use an electronic bid bond. Guaranty checks or printed bid bonds will not be accepted." You type a bond authorization code into iCX, so an emailed PDF has nowhere to go.
Who needs one: highway, paving, drainage, bridge, and maintenance contractors bidding online. Printed bids are still allowed, with a different set of rules below.
The amount
How much is the TxDOT proposal guaranty?
Two percent of TxDOT's estimate, not your bid, rounded to the nearest $1,000 and capped at $100,000 (43 TAC §9.14(d)). Older sources that say 5% are out of date.
| Engineer's estimate | Guaranty |
|---|---|
| $25,000 or less | None required |
| $150,000 | $3,000 |
| $412,000 | $8,000 |
| $750,000 | $15,000 |
| $999,000 | $20,000 |
| $5,000,000 and up | $100,000 |
Examples are arithmetic on the rule. The dollar amount printed on your proposal cover controls. This is the bond amount, not what the bond costs you. Premium depends on the surety and your file.
The clearinghouse
How electronic bonding works, and who can do it.
TxDOT's iCX help says the bidder "must receive an electronic bid bond from Surety2000 or SurePath." Tinubu, a surety software company, says SurePath is now its TSBA product, while TxDOT still lists the old name. Under 43 TAC §9.14(d), only authorization codes from companies listed in the current bidding system are acceptable.
The surety has to be authorized in Texas. The bond must be in your name or TxDOT vendor number, dated on or before bid opening, and for a joint venture, in the name of all participants. The name is your responsibility (Item 2 §8.2), so check it before you submit. TxDOT warns that first-time setup "can take as much as a week" and that clearinghouses charge a fee for service.
We issue them
Your agent and surety have to be set up on the clearinghouse first, and not every agency is. We issue TxDOT electronic bid bonds. Call us at (281) 484-8320 with your letting date, and leave time for first-time setup.
The printed bid route
On a printed bid, TxDOT takes a cashier's check, money order, or teller's check no more than 90 days old (no personal or certified checks), or a bid bond (Item 2 §9.2). A printed bond must be on TxDOT's own form, with powers of attorney dated and attached, the surety's impressed seal, and signatures from you and the surety. An electronic bond also works on a printed bid. A low bidder's check is held until the contract is rejected or awarded and executed (Item 3 §7). We can provide the sealed original for a printed bid too.
After you bid
Deadlines that can cost you the guaranty.
5 calendar days after opening
For the apparent low bidder: the DBE commitment on federally funded jobs with DBE goals, and E-Verify documentation if it isn't already in the system. Missing them makes the bid nonresponsive and puts the guaranty at risk (Item 2 §§14, 15).
15 days after award notice
Contract, bonds, insurance certificate, and ownership form (Item 3 §4).
Which bonds
Under $25,000: none. $25,000 to $100,000: payment bond. Over $100,000: performance and payment. Each in the full contract amount (Item 3 §4.2, Table 1).
If you don't sign
The guaranty "will become the property of the State, not as a penalty, but as liquidated damages," and you will not be considered for the same work unless the design substantially changes (Item 3 §5).
Before you can bid
Prequalification and smaller jobs.
Bidder's Questionnaire or Confidential Questionnaire
You need TxDOT prequalification to get an iCX administrative account. Two tracks exist. A Bidder's Questionnaire only lets you bid projects marked "W" for waived. Bidding capacity is limited to $1 million unless you file a compiled or reviewed financial statement. A Confidential Questionnaire needs an audited statement, and capacity comes from net working capital times a factor TxDOT sets. Either way, TxDOT subtracts your uncompleted TxDOT work when it figures available capacity.
File at least 10 days before the letting, and allow for TxDOT's review of up to 10 calendar days. A Confidential Questionnaire runs one year from the balance sheet date. A Bidder's Questionnaire filed without financials runs one year from TxDOT's receipt. TxDOT allows a four-month grace period to prepare a new statement.
District local lettings
Non-building contracts TxDOT estimates at less than $1 million may be filed with the district engineer (Transportation Code §223.005). TxDOT implemented that threshold in August 2024, up from $300,000. Its March 2025 audit describes those bids going in on paper or through iCX. Local letting and waived status are separate things: one decides where the bid goes, the other decides who may bid. Read both on your proposal.
How to get bonded
Four steps to an electronic bid.
- 01
Get prequalified
File your questionnaire with TxDOT at least 10 days before the letting.
- 02
Set up the clearinghouse
Your surety agent can help set up an account with Surety2000 or SurePath. Allow as much as a week.
- 03
Have the bond issued
In your name or vendor number, for the amount on the proposal cover, dated on or before bid opening.
- 04
Enter the authorization code
Enter it in iCX with your bid and check the vendor details match.
Legal requirements
Where these rules live.
Guaranty and e-bonds
43 TAC §9.14(d), as amended effective May 20, 2026. Transportation Code §223.016 allows a bid bond issued by a surety authorized to do business in Texas.
Bid and award
2024 Standard Specifications, Item 2 (bidding) and Item 3 (award and execution). Your proposal may carry special provisions to those items. If so, the proposal controls.
Prequalification
43 TAC §9.12, as amended effective May 20, 2026. Older online copies still show lower capacity figures.
Why Surety Bond Houston
Ready before the letting.
We read the proposal
40+ years of combined experience. Send the proposal and we check the guaranty amount, form, and deadlines with you.
Electronic or printed
We issue the electronic bond for iCX and the sealed original for a printed bid.
Houston-local
A Texas team you can call about your other contract bonds too.
Related bonds
The bonds around a TxDOT job.
FAQ
TxDOT bid bond questions.
Can I use a PDF bid bond on a TxDOT online bid?
No. On electronic bids TxDOT requires an electronic bid bond and says guaranty checks and printed bid bonds will not be accepted (2024 Standard Specifications, Item 2 §8.2). You enter a bond authorization code in iCX, and only codes from companies listed in the system count (43 TAC §9.14(d)). To use a paper bond, submit a printed bid (Item 2 §9.2).
How much is the TxDOT proposal guaranty?
Two percent of the engineer's estimate, rounded to the nearest $1,000, capped at $100,000. Contracts with an estimate of $25,000 or less need none (43 TAC §9.14(d)). It is based on TxDOT's estimate, not your bid, and the dollar amount is on the proposal cover. Go by the cover.
How do I get set up for electronic bid bonds?
Work with a surety agent, who can help set up an account with Surety2000 or SurePath, the two clearinghouses TxDOT lists. TxDOT warns the first setup can take as much as a week and that clearinghouses charge a fee. Start well before the letting. We issue TxDOT electronic bid bonds and can walk you through the setup.
What happens if I win and do not sign?
You have 15 days after written notice of award to deliver the contract, required bonds, and insurance certificate (Item 3 §4). If you miss it, the guaranty becomes the State's "not as a penalty, but as liquidated damages," and you will not be considered in future proposals for that work unless the design substantially changes (Item 3 §5). Missing the 5-day DBE or E-Verify deadlines also puts the guaranty at risk (Item 2 §§14–15).
Do I need audited financials to bid TxDOT?
Not for waived projects, marked "W" on the proposal request form. A Bidder's Questionnaire covers those, with bidding capacity limited to $1 million unless you file a compiled or reviewed statement. Other projects need a Confidential Questionnaire with an audited statement. File at least 10 days before the letting; TxDOT says review can take up to 10 calendar days.
What changed for smaller TxDOT jobs?
Non-building contracts estimated under $1 million may now be let at the district level, up from $300,000 (Transportation Code §223.005; TxDOT implemented it in August 2024). TxDOT's March 2025 audit describes those bids going in on paper or through iCX. Check the proposal for the contact and any local instructions.
Ahead of the letting
Bidding TxDOT? Get set up before the letting.
Bring your letting date and proposal number. We'll go through the guaranty and the route that fits your job.