Texas

For Texas, payment bond threshold is When the governmental entity is not a municipality or a joint board created under Subchapter D, Chapter 22 of the Transportation Code, contracts excluded are those less than $25,000. When the governmental entity is a municipality or a joint board created under Subchapter D, Chapter 22 of the Transportation Code, contracts excluded are those less than $50,000; bond amount is The amount of the contract; claim deadline is No suit may be brought on the payment bond after the expiration of one year after the date the notice of claim is mailed; preliminary notice required is must mail to the prime contractor and the surety written notice of the claim on or before the 15th day of the third month after each month in which any of the claimed labor was performed; statutory citation is Texas Government Code, Title 10, Subtitle F, Chapters 2253, 2267, verified against its source on 2026-08-17.

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What the source says

TEXAS Amount of Bond: The amount of the contract. Labor and Material Covered: All “public work material” and “public work labor” supplied to the project. “Public work material” means: (1) material used, or ordered and delivered for use, directly to carry out a public work; (2) specially fabricated material, which is material ordered by a prime contractor or subcontractor, that is specially fabricated for use in a public work and reasonably unsuitable for another use; (3) reasonable rental and actual running repair costs for construction equipment used, or reasonably required and delivered for use, directly to carry out work at the project site; or (4) power, water fuel and lubricants used, or ordered and delivered for use, directly to carry out a public work. “Public work labor” means labor used directly to carry out a public work. Notice Required: Notice Required for Claim for Payment for Labor and Material. To recover in a suit on a payment bond for a claim for payment for public work labor performed or public work material delivered, a payment bond beneficiary must mail to the prime contractor and the surety written notice of the claim on or before the 15th day of the third month after each month in which any of the claimed labor was performed or any of the claimed material was delivered. The notice must be accompanied by a sworn statement of account that states in substance the amount claimed is just and correct, and all just and lawful offsets, payments and credits known to the affiant have been allowed. The statement of account shall include the amount of any retainage applicable to the account that has not become due under the terms of the public work contract between the payment bond beneficiary and the prime contractor or between the payment bond beneficiary and a subcontractor. Notice of Claim for Unpaid Labor or Materials When Written Agreement Does Not Exist. When no written agreement exists between the claimant and the prime contractor or between the claimant and a subcontractor, the notice for a claim for unpaid bills must contain the name of the party for whom the public work labor was performed or to whom the public work material was delivered, the approximate date of performance or delivery, a description of the public work labor or material for reasonable identification and the amount due. The claimant shall generally itemize the claim and include with it copies of documents, invoices or orders that reasonably identify the public work labor performed or public work material delivered for which the claim is made, the job and the destination of delivery. Notice of Claim for Multiple Items of Labor or Material. When the claim is for multiple items of public work labor or material, to be paid on a lump sum basis, the notice must describe the labor or material in a manner that reasonably identifies the labor or material, state the name of the party for whom the labor was performed or to whom the material was delivered, the approximate date of performance or delivery, whether the contract is written or oral, the amount of the contract and the amount claimed. Notice of Claim for Unpaid Labor or Material Under Written Unit Price Agreement. Where a claimant who is a subcontractor or materialman to the prime contractor or to a subcontractor has a written unit price agreement that is wholly or partially completed, notice is sufficient if a claimant attaches to the sworn statement of account a list of units and unit prices as fixed by its contract, and a statement of those completed and partially completed units. Additional Notice Required for Payment Bond Beneficiary Without Direct Contractual Relationship with Prime Contractor. A payment bond beneficiary who does not have a direct contractual relationship with the prime contractor for public work labor or material must also provide the following notices: (1) To perfect a claim for contractual retainage, the payment bond beneficiary must provide written notice to the prime contractor that the contract provides for retainage, and generally indicates the nature of the retainage on or before the 15th day of the second month after the date of the beginning of the delivery of public work material or the performance of public work labor. (2) To perfect a claim for unpaid public work labor performed or public work material delivered, a second tier payment bond beneficiary must provide written notice to the prime contractor on or before the 15th day of the second month after each month in which the labor was performed or the material was delivered. A copy of the statement sent to a subcontractor is sufficient as notice under this subsection; and (3) To perfect a claim for specifically fabricated materials, a payment bond beneficiary must mail to the prime contractor, on or before the 15th day of the second month after the receipt and acceptance of an order for specially fabricated material, written notice that the order has been received and accepted. These additional notice provisions do not apply to a payment bond beneficiary who is an individual mechanic or laborer who makes a claim for wages. Retainage . Retainage, as defined in the statute, means the part of the payments that is not required to be paid within the month after the month in which the labor is performed or material furnished. Notice Required for Claim for Payment of Retainage. To recover on a payment bond for a claim for payment of retainage, a claimant whose contract with a prime contractor or subcontractor provides for retainage must mail written notice of the claim to the prime contractor and the surety on or before the 90th day after the date of the final completion of the public work contract. The notice shall consist of a statement stating the amount of the contract, any amount paid under the contract, and the outstanding balance. Notwithstanding the above, notice for claim for payment of retainage is not required if the amount claimed is part of a prior claim made for payments other than retainage. Time for Suit: Suit on a payment bond may be filed if the claim is not paid before the 61st day after the date the notice of claim is mailed. No suit may be brought on the payment bond after the expiration of one year after the date the notice of claim is mailed. Contracts Excluded: When the governmental entity is not a municipality or a joint board created under Subchapter D, Chapter 22 of the Transportation Code, contracts excluded are those less than $25,000. When the governmental entity is a municipality or a joint board created under Subchapter D, Chapter 22 of the Transportation Code, contracts excluded are those less than $50,000. Penalty for Failure to Take Bond: If the payment bond is not furnished, the governmental entity is subject to the same liability that a surety would have if the surety had issued the payment bond and the governmental entity had required the bond to be provided. Public/Private Partnerships: Chapter 2267 of the Texas Government Code allows governmental entities to enter into comprehensive agreements with private parties to construct qualifying projects, including buildings, hospitals, schools, public works, recreational facilities and other public projects. Among other things, Chapter 2267 provides a process for private parties to submit unsolicited proposals to governmental entities. Chapter 2267 requires subcontractors and suppliers to procure payment and performance bonds in compliance with Chapter 2253 of the Texas Government Code on projects funded by public/private partnerships. Statutory Citation: Texas Government Code, Title 10, Subtitle F, Chapters 2253, 2267.

— fullertonlaw.com, retrieved 2026-08-17

Source

• fullertonlaw.comhttps://fullertonlaw.com/50-state-summary-payment-bond-law

Last verified against source: 2026-08-17. Due for re-check by 2027-08-17. This page as Markdown · OKF bundle · full dataset as JSON.