A Texas Contractor License Bond promises that the contractor will operate their business as stated by the local or state government.
In order to get a contractors license in the State of Texas or a municipality in Texas, contractors generally need to get a Texas Contractor License Bond.
This bond is issued as part of the application process of getting the contractor’s license—it does not take the place of a license or act as a license. It must be written for, and in favor of, the people and state of Texas in order to ensure that they are protected from any financial harm or malpractice on behalf of the contractor.
This bond also does not supplement payment, performance or bid bonds. Those are different kinds of surety bonds that are required to respectively ensure payment to subcontractors, that the project is done in a timely manner and to place a bid on a construction project. The Texas Contractor License Bond is obtained before these bonds as part of the application process to get a license and it must be renewed to keep the license, but it is not involved directly in getting construction projects.