Who needs a contractor permit bond in Lakeway, Texas?
All contractors performing construction of any improvement must post a $10,000 surety bond. These contractors must also provide:
- A completed contractor questionnaire
- A completed permit application
- A certificate of insurance showing a waiver of subrogation in favor of the city and listing the city as the certificate holder: $250,000 bodily injury or death of one person; $500,000 bodily injury or death of two or more persons; and $250,000 injury or destruction of property in one accident
Get Your Lakeway Contractor Bond:
How do contractor bonds work?
A contractor license bond guarantees that clients will receive satisfactory work from contractors. By agreeing to the bond, contractors state that they’ll follow the standards and regulations of their obligee (e.g., the City of Lakeway). Clients can file a claim for compensation if a contractor breaks their bond contract. The surety will pay damages to clients immediately if a claim is approved. However, contractors will be held responsible for paying back all approved claims against them – plus interest and fees. You will pay a premium, a small percentage of the total bond amount, to purchase and post your bond. ZipBonds often issues these types of bonds instantly for as low as $100 per year.
Frequently Asked Questions
How long will my bond cover my work?
The initial bond term is typically one calendar year. You must keep your bond active by renewing it annually (often by December 31) to continue working on projects. Your official bond renewal date will be listed on your completed bond form.
What if a claim exceeds the bond amount?
The bond limit, or penal sum, is the highest dollar value a client can receive for damages by filing a claim on a contractor’s bond. If damages exceed this amount, a client may seek alternative forms of compensation. Contractors should avoid claims at all costs by finishing work according to contract terms and communicating openly with clients if conflicts arise.
Apply for Your Contractor Bond in Lakeway, TX
ZipBonds offers the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply online, email support@zipbonds.com or call (888) 435-4191 to speak with an agent directly.
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.