What is a Contractor's Bond?
A contractor’s bond is a legal agreement between contractors, insurers, their clients, and the public. If a contractor does not meet local government regulation standards or complete work as agreed, the contractor’s bond can guarantee that they provide financial compensation. This surety bond works as insurance for anyone who hires contractors to build or renovate, preventing fraud or losses incurred from the contract not being completed as agreed. The contractor has a financial obligation if they do not fulfill the contract or if they don’t meet regulations.
The city of Midland Department of Building Inspection requires a bond of $10,000 for two years to issue permits for building and renovating in the area. TMD Surety Bonds can provide the legally required contractor’s bonds for insuring your business or contracting service when operating in Midland.
How Does a Contractor's Bond Work?
The bond is issued by an insurance company — the surety — between the contractor and the client. The contractor is the principal — the bonded company responsible for paying the bond if the contract fails. The client is the obligee who requires the contractor to be bonded and will be compensated if the contract fails. The contractor buys the bonds, but it is also paid by the client if it is incorporated into the costs of the deal. This protects the client and the public, as work that does not meet local building codes and regulations can be a danger to the public.
Contractor's Bond Requirements in Midland
In the city of Midland, building codes and requirements mean that contractors absolutely need a contractor’s bond to do business in the area. However, these bonds are not too expensive for most contractors, and the minimum requirement of $10,000 for two years comes at an affordable rate. TMD Surety Bonds can fulfill contractor’s bond requirements for contractors and clients through online applications and bond purchases, which can accelerate the process of building permits and development in Midland, Texas.
How to Purchase
- Click the Buy Now button.
- Fill out the easy bond form.
- Confirm your order and select how you would like your bond documents delivered. Email or regular mail.
- Pay for your bond.
- If you chose to have your documents emailed, you will receive them within minutes.
It’s that simple and fast!
Bond Purchase Process
1. Find Your Bond
2. Secure Pricing
3. Buy Online
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The bonding process can be confusing and cumbersome. Our surety bond experts are standing by and ready to answer any questions. Let’s get you bonded today!
Frequently Asked Questions
Looking to Get Started or Have Questions?
The bonding process can be confusing and cumbersome. Our surety bond experts are standing by and ready to answer any questions. Let’s get you bonded today!