Contractors working in Round Rock, Texas will typically need a surety bond as a financial guarantee for the City that their actions will not cause loss or damage. Utility companies or contractors working in the public right-of-way will need to file a $5,000 Permit Bond while landscaping contractors will need a Revegetation, Landscape, and Irrigation Improvements Performance Bond.
Other bonds that may be enforced are the Maintenance Bond, Subdivision Improvements Bond, and Incomplete Site Work Performance Bond (used for temporary certificates of occupancy).
A Round Rock Permit Bond can be purchased automatically for a guaranteed rate of $100 so you can get out there and play ball. A soft credit check will be included in the application to determine a quote for the Revegetation Bond or other bonds. See the chart below for examples of rates at different bond limits.
Bond Limit | Cost |
---|---|
$10,000 | $100 |
$25,000 | $187 |
$50,000 | $375 |
When you are checking out, you can choose to have the bond sent to you or to have Jet file it directly with the City. If you have additional paperwork to submit for your license or permit, it’s probably best to file the bond yourself. All paperwork should be submitted to:
City of Round Rock
Planning and Development Services
301 W Bagdad Ave, Suite 210
Round Rock, TX 78664
Contractor bonds are typically issued for the duration of the permit or can even go up to three (3) years, as is the case with the Subdivision Improvements Bond. The Round Rock Permit Bond is an annual bond and will be valid for an additional year after construction is completed to account for any maintenance needed. Bonds issued for permits may also have a maintenance period after the work has been completed and approved by the City.
So which bond is needed when?
Permit Bond
This bond is used by contractors or utility representatives doing construction in public rights of way and/or public utility easements.
Revegetation, Landscape and Irrigation Improvements Performance Bond
Contractors working on construction and/or irrigation or landscape plans must hold this bond.
Incomplete Site Work Performance Bond
This surety bond is used by developers who are receiving a Temporary Certificate of Occupancy.
Subdivision Improvements Bond
Developers working on subdivision projects, like water, wastewater, drainage, or streets) in a certain subdivision will need this bond.
Maintenance Bond
This bond is used by contractors to guarantee the City that the contractor will maintain the improvements that were made.
How Does the Round Rock Contractor Bond Work?
Let’s think of the contractor as an outfield player on a baseball team. His job is to catch the ball coming his way (or in contractor terms, fulfill the work specified under his contract). So, if there’s a pop-fly heading over, the outfielder should be able to easily catch the ball. But, he drops the ball and it allows the other team to score and win the game.
In this case, there are “damages” of losing the game, causing the fans (clients who hired the contractor) to basically be ripped off. So, they’re calling the general manager (the City) who hired the player (licensed the contractor). The general manager tries to appease the angry fans by giving them free tickets for the next game. These “tickets” are a form of financial compensation, which, in our metaphor, would be the surety bond.
To sum it up, if a contractor drops the ball on finishing the job they were hired for, the customer can complain to the City and file a claim on the Contractor Bond to get a refund for the loss or damage sustained. Although a contractor doesn’t get three strikes before a bond claim, they have the initial opportunity to do their job according to the contract, and oftentimes, if a complaint arises with the quality of work or materials, there is a chance to make repairs prior to being penalized.
Failure to make such repairs would lead to a bond claim; if the bond claim is paid out, the contractor is still liable for their actions and will be required to pay back the surety company (in this case, Jet).