Contractor License Bond in Texas

What this bond requires in Texas

Texas is the biggest state in the country without statewide general contractor licensing. There's no state exam, no state registration, and no state bond for general contractors. What the state does require: Trade licenses — Electricians (TDLR), HVAC and refrigeration (TDLR), and plumbers (Texas State Board of Plumbing Examiners) must be licensed at the state level. Each requires liability insurance, not a bond. Insurance minimums — TDLR electrical contractors need $300,000 per occurrence / $600,000 aggregate / $300,000 completed operations liability coverage. HVAC and plumbing have their own minimums. City registration — Most Texas cities over 50,000 people require contractor registration. Houston, Dallas, Fort Worth, San Antonio, Austin, El Paso, and Arlington all have their own licensing rules, and some require bonds. If a bond broker tells you that you need a "Texas contractor bond" without asking which city you work in, they're either confused or selling you something you don't need. Texas is part of a pattern — several of the largest states in the country leave contractor regulation entirely to cities. Indiana follows the same model , as do Florida, Ohio, and Pennsylvania for general contractors. If you work across these states, you need to research each city separately.

Who requires it

The contractor license bond is required by the Texas Department of Licensing and Regulation under No statewide general contractor licensing statute.

How to file in Texas

Texas has no statewide general contractor license and no statewide contractor license bond. TDLR licenses specific trades (electricians, HVAC/refrigeration, plumbers via the Texas State Board of Plumbing Examiners) and requires liability insurance rather than a surety bond. Bond requirements in Texas come from city-level contractor registration — Houston, Dallas, San Antonio, and Austin each have their own rules.

Common questions

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