Residential conservation contractors are required in certain municipalities in Texas to secure a surety bond prior to obtaining a permit. These bonds ensure that contractors observe all local and state ordinances and statutes. These bonds are relatively inexpensive and easy to obtain. A contractor permit bond penalty is usually between $1,000-$10,000 and cost around $100 with a discount for a 2 year purchase of the surety bond. Most of the contractor bonds expire September 30th of each year.