San Antonia has a number of different contractor license classifications. However, only a select few have a surety bond requirement to have a license issued and legally perform work in the city.
If this is your first time getting licensed in San Antonio, you may have never heard of a contractor surety bond before.
And that's why in this short article, you'll learn:
- What this contractor license surety bond is
- Which licenses have a surety bond requirement
- The required bond amount for each license
- How to purchase your bond and save money
What is a San Antonio Contractor License Surety Bond?
A contractor license surety bond is a legal contract you have to purchase for the protection of your customers.
Think about it like this...
The City of San Antonio is responsible for issuing these licenses. And when you get a license it's essentially the City signaling to the public that you are contracting professional they can trust to get jobs done on time for a good price.
Besides supplying the city residents with qualified contractors, they also have to protect the public. And this surety bond is the only tool they have to hold contractors accountable to the laws in the city and state.
Every year there are a few contractors who choose to commit contracting fraud to make more money.
Examples can include:
- Breaking the terms of a construction project
- Amending the contract without proper notice
- Taking deposits and never starting or completing a project
- Requiring overly large project deposits
- Replacing agreed upon materials with cheaper alternatives to increase profit
- Failing to follow building codes and purposefully performing poor quality work
If a customer is harmed they can make a claim against the surety bond for the financial damages they suffered.
The total amount of any one claim or multiple claims is capped at the bond amount, which we'll talk about in the next section.
What is a Contractor License Surety Bond Recap
Just to recap, this surety bond is a legal contract you purchase to hold you accountable to the:
- Laws and regulations for contractors in San Antonio
- Customer base you are going to serve
The good news is there is no state wide Texas contractor license bond like most other states have.
Which San Antonio Contractor Licenses Have a Surety Bond Requirement?
Here are the license classifications that require a surety bond along with the required bond amount.
Keep in mind these bond amounts are set by the city government. They are not set by us.
- Demolition contractor license - $5,000
- House mover license - $2,000
- State irrigation plumbing license - $10,000 (optional)
- Sidewalk, cub, and gutter license - $2,000
- Commercial billboard sign operator license - $45,000
- Off premises billboard operator license - $45,000
- TABLE
State Irrigation Plumbing License Requirement
To have an irrigation license issued you have the option of purchasing liability insurance or a surety bond.
The minimum liability insurance requirements are:
- $300,000 in public liability (per occurrence)
- $300,000 property liability (per occurrence) and product/completed operations
Estimates would put the cost of these policies at $40 to $80 per month.
A $10,000 surety bond cost would only start at $100 for the entire year... so this is likely a much less option over the course of a year.
If you're ready to purchase your bond today and have it issued, complete a quote request and we can help you finish this quickly.
How Much Does a San Antonio Contractor Cost?
At a high level a surety bond is priced similar to a traditional insurance policy in that your personal credit score is going to be factor in determining the price you pay.
However, for most of the San Antonio contractor bonds, this won't be the case.
The following bonds can purchased with no credit check:
- Demolition contractor license - $5,000
- House mover license - $2,000
- State irrigation plumbing license - $10,000 (optional)
- Sidewalk, cub, and gutter license - $2,000
The commercial sign operator licenses will require a soft credit check of you (the business owner) or all business owners if there are more than one.
Other factors than can influence the price include:
- Industry experience
- The bond history if an owner has been licensed in the past
We are Surety Bonds Direct. We're a speciality surety agency and it's our job to find you the lowest possible price.
Rates tend to range from 1% to 3% so here are example prices based on the $45,000 bond amount.
| Bond Amount | Premium Rate | Total Cost |
|---|---|---|
| $45,000 | 0.5% | $225 |
| $45,000 | 1.0% | $450 |
| $45,000 | 2% | $900 |
| $45,000 | 3% | $1,200 |
| $45,000 | 4% (high rate) | 1,800 |
We don't know why different surety companies price the same bond so differently, but they do. This is how we're able to save you so much money and why using us to purchase a surety bond makes so much sense.
When you buy your contractor bond, it's one payment for the bond term
Complete our quote request form and we'll get you pricing today or call us at 1-800-608-9950.
Do You Need To Keep Purchasing Your Surety Bond?
Contractor surety bonds are typically purchased for one year terms.
This means when you purchase your bond, it's one payment for 12 months.
However, keep in mind that during the first year you'll likely pay a prorated amount because in San Antonio each license has a hard license expiration date.
For example:
- Commercial sign contractors have an expiration date of September 30th
- Sidewalk contractors have an expiration date of December 31st
That is the hard expiration date for your surety bond too. You'll have to pay a renewal premium on that day for the following 12 months as long as you're doing work in the city limits.
Get Your San Antonio Contractor Bond Today
Getting your San Antonio contractor surety bond is a pretty simple process.
- Click to request a quote and tell us which specific bond you need
- We will almost immediately get back to you with pricing
- Purchase your bond and we'll issue it to you within one business day
If you have any questions or you would rather just call us to get this process done, our number is 1-800-608-9950.
Since you’re in Texas, you might be interested in the following contractors license bonds:
Remember, in most cases you need this bond to have your license registration issued so get this step done today.
