Commercial Auto · Construction Bonds
Construction Bonds, Without the Runaround
A bond guarantees you'll do what you promised — finish the job, pay your subs, or operate within the law. Contractors typically need one of three: a license bond (to get or keep a license), a performance bond (to guarantee the work), or a payment bond (to guarantee subs and suppliers get paid). Flatland writes all three across Missouri, Kansas, Oklahoma, Texas, Colorado, and Iowa, with fast approval and straight answers on what each job actually requires.
Who needs a bond
Who needs a bond
- Licensed trades required to carry a license/registration bond
- Contractors bidding public or commercial work (bid/performance/payment)
- Subs whose GC requires a payment bond
- Freight brokers (BMC-84) and motor carriers (BMC-91) — your existing book
The distinction
License vs. performance vs. payment bonds — which do you need?
| Bond type | What it guarantees | When you need it |
|---|---|---|
| License | You'll operate within law/code | To get/keep a license |
| Performance | You'll complete the contracted work | Bidding/awarded jobs |
| Payment | Your subs & suppliers get paid | Often paired w/ perf. |
| Bid | You'll honor your bid if you win | Public bidding |
Plain rule: license bond = permission to work; performance/payment = trust on a specific job; bid bond = you'll stand behind your number.
Cost
How much does a construction bond cost?
KEY education point: you do NOT pay the full bond amount. You pay a PREMIUM — a percentage of the bond's face value, driven by your credit, the bond size, and the bond type. A $50,000 license bond might cost a small fraction of that per year, not $50,000 — your exact premium comes from a quote.
Speed
How fast can you get bonded?
Often same-day for standard license bonds; larger performance/payment bonds take underwriting. To move fast, have ready: the bond form or obligee requirement (who's asking and for how much), basic business info (legal name, entity type, years in business), the owner's information, and — for larger contract bonds — recent financials. We place bonds through our appointed sureties (CNA Surety, Merchants Bonding).
Other bonds
Other bonds we write
We also write BMC-84 freight broker ($75,000), BMC-91 carrier, and auto dealer bonds. Keeps the trucking-bond business intact under this hub — see Trucking Insurance.
Why Flatland
Why Flatland
We're appointed with surety markets (CNA Surety, Merchants Bonding) and write license, bid, performance, and payment bonds across all six states. We ask the bond question on every contractor quote, so paperwork never costs you a job. An independent agency working with a wide variety of carriers and markets to fit each client's needs.
By Zachary J. Kramer, licensed insurance agent, 20+ years' experience, NPN 7570201, Baylor University BBA. Flatland Expeditions LLC, founded in 2022 — an independent agency/broker working with a wide variety of carriers and markets to fit each client's needs.
FAQ
Construction bond FAQs
- Is a bond the same as insurance?
- No. Insurance protects YOU. A bond protects the public, the state, or the party hiring you — if you fail to perform, the bond pays them, and you repay the surety. It's a guarantee, not a safety net for your business.
- How much does a contractor license bond cost?
- You pay a premium — typically a small percentage of the bond's face value, based on credit and bond size — not the full amount.
- Do I need a bond in my state?
- It depends on your trade, your city, and your state. Many trades across TX, OK, KS, MO, and CO require a license or registration bond — for example, Oklahoma roofers register with the Construction Industries Board, and several cities (Kansas City, Denver, Wichita) require contractor bonds by trade. Ask us and we'll tell you straight what yours needs.