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Does Texas have an express cause of action against the municipality for failure to require bonds?

Texas

What is the minimum project amount for a bond to be required in Texas for a county job? Does Texas provide for an express cause of action against the municipality for failure to provide a bond?

2 replies

Jan 25, 2022

The answer to your question can be found in Chapter 2253 of the Texas Government Code. A governmental entity that is not a municipality or an entity formed under the Transportation Code must require a payment bond for contracts in excess of $25,000. Municipalities and entities formed under the Transportation Code must require a payment bond for contracts in excess of $50,000. There is no cause of action for the governmental entity's failure to obtain a bond. However, the governmental entity will be liable to a claimant as though the entity was the surety, and the claimant will have a lien against money owed to the general contractor.

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Jan 25, 2022
Thank you Jacob !
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