What is a Street Contractor Bond?
The city of Abilene, Texas, requires street contractors to purchase a $1,000 bond before applying for permits. Who is considered a street contractor? Street contractors are contractors who build, repair, or reconstruct any of the following:
- Streets and alleys
- Sidewalks
- Curbs and gutters
- Driveways and turnouts
Since these jobs are considered to affect the public right-of-way (ROW), permits are obtained through the Public Works Department’s Engineering Division. Why is a bond required, and where can a contractor purchase it?
Why Purchase a Street Contractor’s Bond?
When street contractors carry a bond, it serves as a financial protection for the city. The contractors and their clients benefit, too, since it can cover errors, unintentional damages, and maintenance.
- Financial protection. The city of Abilene has strict standards for the design of streets and infrastructure. In the event that a contractor’s work does not meet the requirements or if errors or unintentional damage to public property occurs during construction, the bond may be used to cover the expenses of a claim.
- Peace of mind. Street contractors that purchase the applicable bond also give their customers peace of mind and a sense of security.
Bond Details
Street contractors must purchase a $1,000 bond before obtaining a permit. The bond establishes an agreement between the following three parties:
- The bondholder or principal: the street contractor
- The obligee: the city of Abilene’s Department of Public Works, Engineering Division
- The surety: the surety provider or insurance company that issues the bond
Bond Purchase Process
1. Find Your Bond
2. Secure Pricing
3. Buy Online
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Frequently Asked Questions
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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!