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For bidding contractors a Texas Construction Bid Bond provides assurance that they will submit serious and well-planned proposals and not retract the bids.

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A surety bond is a promise to be liable for the debt default or failure of another It is a three-party contract by which one party the surety guarantees the performance or obligations of a second party the principal to a third party the obligee.

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If you opt to purchase a surety bond you would pay a surety company to write that bond for you.

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If you fail to appear in court at a required time the bondsman can cash in on the collateral meaning that he or she could sell your property and take the money from the sale.

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