Surety Bond Education

Are you a contractor in Texas and need a Bid Bond? If so, Schmalz & Associates would love to help! Below is some basic information about obtaining a bid bond in Texas. Introduction To Bid Bonds Often, the first step in bidding on a construction project begins with a bid bond. Bid bonds are typically 2, 5 or 10% of the bid estimate. The bid bond is essentially saying that if the contractor is low and awarded the project, they will enter into the contract at the price represented in the bid.  And that they will provide a Performance & […]

The City of Houston Texas requires a $2,000 surety bond as part of the permit application process for performing certain scopes of work. A bond may be required for the construction of a new sidewalk, driveway and/or curb and gutter. We can help secure this bond for you. How Do I Obtain A Sidewalk, Driveway, Curb and Gutter Builders Bond? Obtaining a City of Houston Sidewalk bond is a simple process. Complete our online application under “Contractor License Bond” Pay the premium We will ship the bond to you What Is The Cost? This bond has a premium of $150 […]

The City of Waco, Texas requires that contractors that need a right-of-way permit to obtain a bond. Contractor’s that need to perform work in the right-of-way must first obtain a permit. However, permits are only issued to contractors that obtain the City of Waco Cement Contractor’s Bond. Who Needs A Cement Contractor’s Bond? If you are a contractor performing work in Waco’s right-of-way, you must obtain a permit.  But to obtain the permit you must first obtain a $5,000 Cement Contractor’s Bond. Only bonded contractor’s will be issued a permit by the city. How Do I Obtain A Cement Contractor’s […]

So you are new in business as a contractor.  And you would like to be able to perform public works projects. You might ask yourself, “Can I get a bond as a new business?” In order to bid on public works projects you must provide bid security and the safest bid security is a bid bond. Can you qualify for bonds as a new business? Key Items To Qualify For Bonding As A New Business There are three important things that a surety will look at in bonding a new business: Personal Credit Score Prior Experience Financial Strength Personal Credit […]

When you are out of cash, you are out of business. Cash-Flow in your Construction Business – Why positive cash-flow is the lifeblood of your business A contractor should be reviewing their financials monthly or quarterly to evaluate the performance of the company. It is easy to take a quick look at the profit & loss report, see a positive profit and give yourself high marks. But the reality is, you cannot use profits to pay your bills, you can only pay for things with cash. This makes the cash-flow statement the most important report to understand how and when […]

A probate bond is a type of bond that a court may require.  The court may appoint an executor, fiduciary, trustee or administrator of a deceased person’s estate.  And the court may also require that the executor/administrator/fiduciary post a surety bond.  The surety bond will guarantee that you will uphold your fiduciary responsibility to lawfully perform your duties. How Do I Obtain A Probate Bond? In order to obtain a probate type of bond you will need to complete an application.  This application will ask a variety of questions about your personal finances and the finances of the estate that […]