Texas has its own version of the federal Miller Act that requires performance and payment bonds for federally funded projects valued at more than $100,000. Texas requires performance bonds for state-funded projects over $25,000 and payment bonds for projects over $25,000. So a state-funded public works project valued at $100,000 or more would require both a performance and a payment bond, while a similar project valued between $25,000 and $100,000 would require only a payment bond.
It’s becoming more common for private project owners in Texas to impose similar performance and payment bonding requirements.
