Texas Relief

[grasshopper]

I am a contractor in New Mexico that has moved my buisness down to Texas to help rebuild towns after the hurricane hit. As soon as I got here I was told that I needed a surety bond to operate but wasn't told exactly which type of bond. First I thought it was a Contractor License Bond but another contractor told me it was a Fidelity Bond. Are you familiar with what is happening down here and which bond I should be trying to get?

[h2o]

I am a contractor in New Mexico that has moved my buisness down to Texas to help rebuild towns after the hurricane hit. As soon as I got here I was told that I needed a surety bond to operate but wasn't told exactly which type of bond. First I thought it was a Contractor License Bond but another contractor told me it was a Fidelity Bond. Are you familiar with what is happening down here and which bond I should be trying to get?

The Texas Department of Licensing and Regulation doesn't require a Contractor License Bond in order to become licensed with the State. But it is important to look into the local ordinances for the cities you plan on working in. Many require contractors to be registered with the city and require a Contractor License Bond in order to do so.

You may want to also consider obtaining a fidelity bond as well. Some homeowners may be skeptical about hiring out-of-state contractors during this sensitive time. And having the proper license, insurance, and bonding may help to ease their suspicions. You can read more about fidelity bonds for contractors here: Internal Controls Can Protect Contractors from Losses

[grasshopper]

Does Texas normally require Contractor License Bonds or does it always fall onto the responsibility of individual citites and towns? I have also heard that sometimes a Contractor License Bond will also be required that is job specific, such as electrical work or sewer work. Does that mean I need two bonds before I can start doing work?

[h2o]

Does Texas normally require Contractor License Bonds or does it always fall onto the responsibility of individual citites and towns? I have also heard that sometimes a Contractor License Bond will also be required that is job specific, such as electrical work or sewer work. Does that mean I need two bonds before I can start doing work?

The Texas Department of Regulation and Licensing does not require a contractor license bond, however some local municipalities do. It is not a requirement in every city or town though. Again, it is best to check with the city or town you plan on performing work in.

In some states, for example Louisiana, the state's Department of Revenue may require a bond for specific projects to ensure that certain taxes and penalties are paid.