Some cities in Texas require contractors to get a surety bond prior to obtaining a permit to operate. These bonds are typically inexpensive and are offered in amounts anywhere between $1,000 and $10,000. These bonds ensure that contractors perform their duties according to their contracts and meet all their obligations. Examples of these bonds include bid bonds, payments bonds, performance bonds, and ancillary bonds. Depending on the needs of the particular situation, these bonds require contractors meet all the requirements of their contracts, including performance, subcontractors, and payments.