Frequently Asked Questions
A surety bond is a three-party agreement that guarantees you'll fulfill your obligations. The three parties are: you (the principal), the party requiring the bond (the obligee), and the surety company (who backs the guarantee). Unlike insurance that protects you, a bond protects others from financial loss if you don't meet your contractual or legal obligations. Common uses include contractor licenses, construction projects, court proceedings, and business permits.
Most government agencies require bid bonds to protect taxpayers. A bid bond guarantees you'll honor your bid price and accept the contract if selected. It shows you're a serious, qualified contractor. At Ballew Surety, we help contractors get bid bonds quickly so you don't miss bidding deadlines.
Without a bond, you can't bid on most public projects and many private commercial jobs. This limits your business growth significantly. We specialize in helping contractors establish bonding relationships, even if you're new to bonding or have been declined elsewhere.
A performance bond guarantees project completion. If something prevents you from finishing, the surety company ensures the owner gets their project completed. This gives clients confidence to award you contracts and helps you win more competitive bids.
Many states require contractor license bonds before issuing or renewing licenses. These bonds protect consumers from unpaid work, code violations, or contract breaches. We help contractors get licensed quickly by securing these required bonds.
Many Texas businesses need both, but they serve different purposes. Insurance protects you from liability. License bonds protect your customers and guarantee you'll follow regulations. We can help determine exactly what bonds your specific license requires.
Beyond application fees, most contractor licenses require a surety bond. Bond costs vary by license type and bond amount, typically 1-3% annually. We offer competitive rates and can often provide same-day bond quotes.
They want assurance you'll complete the work as contracted. A performance bond provides this guarantee. If you can't finish the job, the surety steps in to ensure completion. This is standard for larger commercial and public projects.
Require subcontractors to provide performance bonds. This protects you from financial loss if they abandon the project or don't meet contract terms. We help both general contractors and subcontractors get properly bonded.
Payment bonds guarantee suppliers and subcontractors will be paid. For large projects, these bonds protect your supply chain and help you negotiate better terms with vendors.
No, it's a surety bond. Probate bonds (also called fiduciary bonds) protect estate beneficiaries from mismanagement. The court requires this before appointing you as executor, administrator, or guardian. We specialize in court-required bonds and fast processing.
Appeal bonds protect the winning party while you appeal. If you lose the appeal, the bond ensures they can collect the judgment. We handle appeal bonds, injunction bonds, and other court-related bonds regularly.
Require contractors to be bonded before hiring them. Their surety bond protects you financially if they don't complete the work, violate contracts, or fail to pay subcontractors. Always verify a contractor's bond is current.
Insurance protects you from liability and accidents. Bonds protect your customers and guarantee you'll fulfill obligations. Most contractors need both, but they serve completely different purposes. We focus exclusively on bonds and can guide you through requirements.
Bonding capacity is often the limiting factor. We help contractors build strong surety relationships that increase your bonding capacity over time, allowing you to bid on larger, more profitable projects.
Bonding capacity shows the maximum project size you can handle based on your surety relationships. Strong bonding capacity demonstrates financial strength to lenders. We work with contractors to maximize their bonding capacity.