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Development bond

Texas Subdivision Bond. 3%, $250 min.

Texas cities set subdivision improvement security. Local Government Code Section 212.073 lets a developer who contracts with the city for improvements give a performance bond for the contract price.

  • Required by The city approving the plat
  • 3% of the contract amount, $250 minimum. The calculator shows your price
Start the applicationWho needs this bond
  • Soft credit check only
  • 1–3 year terms
  • A-rated surety carriers
  • Issued through Propeller Bonds
  • See your price before you pay
Your price

3% of the contract amount

Minimum premium$250
Contract or bond amount
From $7,5003% × $250,000 = $7,500
Service fee+ $25
  • Soft credit check only
  • 1–3 year terms
Start the application

The best rate, for good credit. A soft credit check, which doesn't affect your score, sets your final price, and you see it before you pay.

Price checked on Propeller Bonds' application, Oct 15, 2026.

How it works

Three steps to your bond.

  1. 01Apply onceTell us about your business and what the bond is for. One application covers most contractor bonds.
  2. 02The surety reviews itPropeller Bonds, our surety partner, reviews your application and sets the terms. We show you the terms before you commit.
  3. 03Sign and fileSign the bond and file it with whoever requires it: the project owner, agency or court. We help with the filing.
The application

What you'll be asked, before you start.

Propeller's application for this bond has 21 questions, plus your consent to a soft credit check that doesn't affect your credit score. Have these to hand and it takes a few minutes.

Good to know for this bond
  • Please note that all site improvement bond requests are subject to a service fee of $25 due to the complexity of the underwriting process. Once your application has been submitted and established in our system, your assigned underwriter will be in touch regarding next steps. Thank you!
From Propeller Bonds' application, checked Oct 15, 2026.

About the bond

Dates and numbers for this bond.

  • Bond amount
  • Effective date
  • Who is requiring the bond?
  • Estimated completion date
  • Type of work to be bonded

About your business

Who the bond is for and how to reach you.

  • Type of entity
  • DBA Name (if applicable)
  • Address line 1
  • Address line 2
  • City
  • State
  • Zip code
  • Contact person first name
  • Contact person last name
  • Contact person position
  • Is contact person the Business owner?
  • Business owner first name
  • Business owner last name
  • Years in business
  • Phone
  • Email

Start the application

About this bond

What a subdivision bond is

Cities and counties often require a developer to bond the public improvements in a new subdivision or site plan, like streets, sidewalks, storm drains, sewer and water lines, before they approve the final map or permits. The bond guarantees the improvements are built to the agency's standards.

In Texas

Texas cities set subdivision improvement security. Local Government Code Section 212.073 lets a developer who contracts with the city for improvements give a performance bond for the contract price.

You need this bond if you're

  • A developer or subdivider recording a final map
  • A builder with a site plan that includes public improvements
  • A contractor building improvements under a developer agreement
  • An owner required to bond grading or erosion control

What the surety looks at

The project, the engineer's cost estimate for the improvements and the developer's finances. Larger projects need financial statements.

FAQs

Common questions.

How much does the Texas Subdivision Bond cost?

3% of the contract amount, with a $250 minimum. The calculator on this page works it out for your amount. Propeller adds a $25 service fee for this bond.

Do I have to pay the full bond amount?

No. You pay the premium. The bond amount is the most the surety would pay out on a valid claim, and if it ever pays one, you pay the surety back.

Is there a credit check?

A soft one. Propeller's application asks you to agree to a soft credit inquiry, which doesn't affect your credit score. Your credit can change the rate, and you see the final price before you pay.

Who sets the subdivision bond amount in Texas?

The city or county approving the subdivision, usually based on the engineer's estimate of the improvement costs. See the facts above for the state law behind it.

When is the bond released?

After the agency accepts the finished improvements. Many agencies then require a smaller maintenance bond for a warranty period.

How do I get one through BLDAssure?

Apply once with us. We collect the details the surety needs, Propeller Bonds (our surety partner) reviews the application and issues the bond, and we help you file it with whoever requires it.

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Texas Right-of-Way Bond

Work in a public street, sidewalk or highway usually needs an encroachment or right-of-way permit, and many agencies require a bond with it.

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Texas Permit Bond

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By state

Subdivision & site bonds in other states.

Alabama subdivision bondAlaska subdivision bondArizona subdivision bondArkansas subdivision bondCalifornia subdivision bondColorado subdivision bondConnecticut subdivision bondDelaware subdivision bondDistrict of Columbia subdivision bondFlorida subdivision bondGeorgia subdivision bondHawaii subdivision bondIdaho subdivision bondIllinois subdivision bondIndiana subdivision bondIowa subdivision bondKansas subdivision bondKentucky subdivision bondLouisiana subdivision bondMaine subdivision bondMaryland subdivision bondMassachusetts subdivision bondMichigan subdivision bondMinnesota subdivision bondMississippi subdivision bondMissouri subdivision bondMontana subdivision bondNebraska subdivision bondNevada subdivision bondNew Hampshire subdivision bondNew Jersey subdivision bondNew Mexico subdivision bondNew York subdivision bondNorth Carolina subdivision bondNorth Dakota subdivision bondOhio subdivision bondOklahoma subdivision bondOregon subdivision bondPennsylvania subdivision bondRhode Island subdivision bondSouth Carolina subdivision bondSouth Dakota subdivision bondTennessee subdivision bondUtah subdivision bondVermont subdivision bondVirginia subdivision bondWashington subdivision bondWest Virginia subdivision bondWisconsin subdivision bondWyoming subdivision bond

Sources

  1. Tex. Local Gov't Code § 212.073

General information, not legal advice. Rules change; confirm the current requirement with the agency or owner that asks for the bond. Facts checked Oct 2, 2026.

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