To receive a construction permit for certain projects over $500 in value in Rockdale, Texas a contractor will need to purchase a Contractor Permit Bond.
The bond limit required by the City of Rockdale is based on the estimated cost of construction. Jet’s price for the bond is only a small fraction of the set bond limit.
Estimated Cost of Construction | Bond Limit | Cost |
---|---|---|
$5-10k | $5,000 | $100 |
$10-30k | $10,000 | $100 |
$30k and above | 33% of costs | Varies |
For bonds under $20,000 the bond is set at $100. For bonds with limits over $25,000, the price is dependent on a soft credit check. So what about between $20 and $25k? It is somewhere between $100 and $125. Either way, the bond will be available for purchase in minutes.
Some bond limits are set below $5,000 and Jet can write your bond, but there is a cash deposit option available which contractors should take advantage of as it will save them their cash on hand as opposed to purchasing a bond.
When the bond purchase is complete the bond needs to be mailed to the address below. Jet usually takes care of this hassle, but the original bond can be mailed directly to the contractor upon request.
City of Rockdale
PO BOX 586
Rockdale, TX 76567
Why is the city requiring bonds before construction?
The bond is not optional because it does not benefit the contractor but instead is for the benefit of the project owner and the City. The bond is a financial guarantee from Jet Insurance Company that any damages caused and not resolved by the contractor will be paid for by Jet, not to exceed the bond limit.
This is not a free ticket for contractors to not uphold their warranty or shirk permit specifications. Every bond indemnifies the surety company (Jet) from damages. The responsibility of the original damages still remains with the contractor. Fortunately, this is a rare occurrence as most contractors uphold their contractual duties.
Other bonds that may be required
Should the need arise for the following bonds, just call Jet at (855) 296-2663 to get the application process started.