Thinking about entering the specialty contractor field in Texas or already in the business? Then you must know by now that there is a licensing process involved before you start your company’s development. While this requires some effort to get going, it can be a smooth and easy one – if you get the facts straight beforehand.
A good start is to differentiate between home builders and specialty contractors such as HVAC, fire sprinkler systems, plumbers, electricians and drilling and pump installation specialists. While general construction specialists are not required to get licensed at state level, the license may be a prerequisite of the municipality or county. Specialty contractors do need to get a license, though. So if you are such a contractor – do read on.
You must have stumbled upon the requirement for Texas surety bonds as well, more precisely the general type of contractor license bond. Don’t know what they are? Let us explain below why you need bonding and how to get it.
The contractor license basics
Specialty contractors in Texas need to obtain a state license before they start operating.
If you want to get licensed as an HVAC contractor, an electrician or a water well driller and pump installer, you will need to meet the requirements of the Texas Department of Licensing and Regulation. For Fire Sprinkler System Contractor’s License, you should turn to the Texas Department of Insurance. Plumbers have to get licensed by the Texas State Board of Plumbing Examiners.
The requirements for licensing vary depending on the field of specialty. Consulting the website of each specialty will grant you the needed application forms and general information. While surety bonds might not be required for the state license, the local municipalities and counties might have such a requirement in the licensing process.
Texas surety bonds
In case you do need a Texas surety bond, it’s a good idea to understand the purpose of the bonding.
You might have heard about contractor bonds for specific projects, such as bid bonds, performance and payment bonds. They are required for performing a certain work. Their aim in such a case is to guarantee that you, as a contractor, will abide by the contractual agreement and will execute your part of the job.
Contractor license bonds, on the other hand, are required when you want to register as an operational contractor in a certain area, such as a state, a municipality or a county. They are a formal reassurance that you will follow the rules and regulations of the respective local authority, thus guaranteeing your work performance. This is the kind of bond you need to obtain to get licensed.
Getting bonded made easier
If you are just starting your business as a specialty contractor, you might be worried about the process and price of the bonding.
You should not stress about it because there are surety bond agencies that can get you bonded even with a not-so-perfect credit situation and even when you are fresh to the business. JW Surety Bonds operates on a large scale, which allows us to consider only your personal credit score when we evaluate your bonding application. Good news: this means you should focus on improving only this criterion in the bonding process.
If you are ready to go today, go ahead and apply for your Texas surety bond.