Before you start working as a general contractor in Texas, you need to get your business license. Also, you will need insurance and a construction bond. These are requirements regardless of which state you live in. It is easy to obtain a Texas general contractor license. Continue reading for additional information regarding General contractors in Texas having many benefits.
The most obvious benefit of joining a professional association is to receive benefits like Worker's Comp insurance, vehicle and gas discounts, and cell phone plans. You can also share and view award-winning projects among your fellow members. The Associated General Contractors Texas Building Branch has recognized more than 80 construction projects, including 13 projects by Specialty Contractors. It can be hard to determine which project is best. General contractors in Texas are often required to obtain a bond before starting an operation. The type and location of the work will determine the amount of bond. Typically, these bonds range from $5,000 to $25,000, depending on the size of the job.
Applicants must also pay a premium that is equal to a percentage of the bond amount. Candidates with strong financial records are often eligible for a premium of as little as 0.75 percent. You should first contact Texas licensing agencies before you apply for your license. Make sure that you meet the qualifications for your state. You should verify that a licensed general contractor exists in your area. You may need to bond in your area. Visit the Texas Associated General Contractors website for more details about Texas licensing laws.
Bond of Operation in Texas
There are other benefits of becoming a member of this association. In Texas, like in other states, general contractors are often required to obtain a bond. The amount of the bond depends on the area you live in and the type of work that you plan to do, but in most cases, contractors must have a bond of $5,000 or more. The premium varies, but generally, applicants must pay a premium of 0.75% to 5% of the bond amount.
The premium for applicants with poor financial records is typically lower than those with good ones. The state of Texas requires general contractors to have a bond to start the operation. The amount of the bond varies depending on the type of work they perform. General contractors must pay between $5,000 and $25,000 for a bond premium in Texas. However, this can change. Premiums must be paid to bond a state vary based on the size of work. A general contractor who does large jobs will likely need a bond.