Texas licenses only specialty contractors at the state level, but some municipalities and counties have their own licensing rules and may require the purchase of a contractor license bond.
Texas’s “Little Miller Act,” the state’s version of the federal Miller Act, requires performance bonds and payment bonds for all state-funded projects, regardless of their value. The Little Miller Act does not apply to private construction projects, but many private project owners also require their contractors to purchase performance and payment bonds. Both state and local contracting authorities and private project owners have the option of requiring a bid bond from every contractor in a competitive bidding situation.
Other construction bonds that contractors doing business in Texas may need to purchase include:
- Maintenance bonds
- Subdivision/site improvement bonds
- Supply bonds
- Solar decommissioning bonds
- Right of Way bonds
- Contractor License bonds
