Even in a small town like Panhandle, Texas, a permit bond may be required before a contractor can begin a job. While unlikely for most projects, some construction jobs within the City may require one. For example, any construction project on a public right-of-way will have a requirement of a $1,000 permit bond for the contractor to file with the City before construction can begin.
The cost of the bond is $100 and can be purchased in minutes online.
Bond Limit | Cost |
---|---|
$1,000 | $10 |
When the bond purchase is made, Jet will file the bond for you immediately to the City of Panhandle. The bond will remain in force until the project is completed. If the project extends over a year, the bond may need to be renewed. All bond filings are made to the address below.
City of Panhandle
1 Main Street
Panhandle, Texas 79068
806-537-3517
The Right-of-Way Permit Bond is a guarantee from Jet Insurance Company to the City of Panhandle to make restitution should the contractor fail to return the public areas utilized during construction to their prior condition. Permit bonds may also guarantee permit stipulations are upheld by the contractor and any fiscal damages can be repaid by a neutral, third-party surety company (Jet).
What makes a surety bond different from other forms of insurance is the bond protects other parties from the insured contractor. Basically, a piggy bank should the contractor fail to correct any wrongdoing. This does not absolve the contractor from their liability and they do have to reimburse the surety company for any damages paid out.