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Fill Your Texas Maintenance Bond Form

The Texas Maintenance Bond form is a legal document that ensures a contractor, referred to as the Principal, is responsible for repairing any defective work for a specified period after completing a construction project. This bond protects the municipality, in this case, the City of Plano, by guaranteeing that the Principal will uphold their obligations related to public improvements. To initiate this process, complete the form by clicking the button below.

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Dos and Don'ts

When filling out the Texas Maintenance Bond form, consider the following guidelines:

  • Do ensure that all fields are completed accurately.
  • Do use the correct legal names for all parties involved, including the Principal and Surety.
  • Do verify that the amount of the bond is clearly stated in both words and numbers.
  • Do make sure the date on Page 1 matches the date on the Contract.
  • Don't leave any sections blank; incomplete forms may be rejected.
  • Don't use abbreviations or informal names for the parties involved.
  • Don't forget to include the name and address of the Resident Agent of Surety.
  • Don't forget to have the Principal and Surety sign and date the form.

Sample - Texas Maintenance Bond Form

 

 

MAINTENANCE BOND

STATE OF TEXAS

§

 

 

§

KNOW ALL MEN BY THESE PRESENTS:

COUNTY OF COLLIN

§

 

That ______________________________ of the City of ________________,

County of _________________ and State of Texas, (called "Principal"), and

_______________________________, a corporation organized and existing

under the laws of the State of Texas to act as surety on bonds for principals, (called "Surety"), are held and firmly bound unto the CITY OF PLANO, TEXAS, a Home Rule Municipal Corporation (called "City"), in the amount of

___________________________________ DOLLARS ($__________________), in

lawful money of the United States, to be paid in Plano, Collin County, Texas for the payment of which, the Principal and Surety bind themselves, and their heirs, administrators, executors, successors and assigns, jointly and severally, firmly by these presents:

WHEREAS, the Principal has entered into a contract (called "Contract") with

__________________________________ (called "Developer") dated the ____ day of

________________, ______, which among other things calls for the construction of

certain public improvements (called "Work"), which inure to the benefit of the City, such public improvements being in connection with development of

___________________________________, an addition or subdivision incorporated

hereby reference and which public improvements are listed on Exhibit "A" attached hereto and incorporated herein by reference; and

WHEREAS, under the terms of the specifications of the Work, the Principal is required to give a bond in the amount specified hereinabove to guarantee the replacement and repair of defective or faulty workmanship furnished or installed by the Principal for a period of one (1) year, from and after the date the Work is completed by Principal and accepted by the City.

NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the Principal shall for a period of one (1) year, from and after the date the Work is completed by the Principal and accepted by the City, replace and repair any and all defective or faulty workmanship in the Work, then the above obligation shall be void; otherwise, the said obligation shall remain in full force and effect.

Venue for any action to enforce this Bond shall be Collin County, Texas

DD/Forms:Bond-Maintenance (PD-2002)

Page 1

IN WITNESS WHEREOF, the said Principal and Surety have signed and sealed this instrument this ____ day of ________________, ______.

 

Principal

 

Surety

By:

______________________

By:

______________________

Title:

______________________

Title:

______________________

Address:

_______________________

Address:

________________________

 

_______________________

 

________________________

 

_______________________

 

________________________

The name and address of the Resident Agent of Surety is:

Name:

______________________________________________________

Address:

______________________________________________________

City, State, Zip

______________________________________________________

 

____________

For additional information on the above named Surety company you may contact the Texas Department of Insurance at (800)578-4677.

NOTE: Date on Page 1 of Maintenance Bond must be same date as Contract. Date on Page 2 of Maintenance Bond must be after the date of Contract. If Resident Agent is not a corporation, give a person's name.

DD/Forms:Bond-Maintenance (PD-2002)

Page 2

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Documents used along the form

The Texas Maintenance Bond form is an important document in the construction process, ensuring that public improvements are completed to the required standards. Along with this form, several other documents are commonly used to support and clarify the obligations of the parties involved. Below is a list of these documents, each with a brief description.

  • Contract Agreement: This is the primary document outlining the terms and conditions of the agreement between the Principal and the Developer. It specifies the scope of work, deadlines, and payment terms.
  • Exhibit A: Attached to the Maintenance Bond, this exhibit lists the specific public improvements that the Principal is responsible for completing. It serves as a reference for what needs to be repaired or replaced.
  • Performance Bond: This document guarantees that the Principal will complete the project according to the contract terms. If the Principal fails to do so, the Surety will step in to ensure completion.
  • Insurance Certificate: This certificate proves that the Principal has the necessary insurance coverage to protect against potential liabilities during the construction process.
  • Notice of Completion: Once the work is finished, this document is filed to officially notify the City that the project has been completed. It may trigger the start of the warranty period.
  • Change Order: This document is used to modify the original contract. It can include changes to the scope of work, deadlines, or costs and must be agreed upon by all parties involved.

These documents work together to ensure clarity and accountability in the construction process. Having all necessary forms in order can help prevent misunderstandings and protect the interests of everyone involved.

Common mistakes

Filling out the Texas Maintenance Bond form can be straightforward, but many people make mistakes that can lead to complications. One common error is failing to ensure that the dates on the form are consistent. The date on Page 1 must match the date of the Contract. If these dates are different, it could create confusion or invalidate the bond.

Another mistake is neglecting to provide complete information about the Principal and Surety. It's essential to fill in the names and addresses accurately. Missing or incorrect details can delay processing or lead to disputes later. Always double-check the spelling and completeness of this information.

Many individuals also overlook the requirement to specify the bond amount. This amount should be clearly stated in both words and numbers. If the bond amount is not filled out correctly, it can lead to misunderstandings about the obligations involved.

In addition, people sometimes forget to include the name of the Developer in the designated area. This information is crucial as it ties the bond to the specific project. Omitting this detail can result in the bond being considered incomplete.

Another frequent error involves the signature section. All necessary parties must sign the form. If the Principal or Surety fails to sign, the bond may not be enforceable. Make sure that all signatures are present and that titles are included where required.

Finally, individuals often miss the note about the Resident Agent. If the Resident Agent is not a corporation, the name of a person must be provided. Failing to do this can lead to issues with the bond's validity. It's important to follow all instructions carefully to ensure the bond is properly executed.

Misconceptions

Understanding the Texas Maintenance Bond form is crucial for anyone involved in construction or development projects. However, several misconceptions often arise regarding its purpose and requirements. Here are five common misunderstandings:

  • The Maintenance Bond is only for new construction. Many believe that this bond applies solely to new construction projects. In reality, it also covers repairs and improvements to existing structures, ensuring that all workmanship meets acceptable standards.
  • Once the bond is filed, no further action is needed. Some assume that filing the bond is the end of their obligations. However, the principal must actively monitor and address any defects or faulty workmanship for the duration of the bond, typically one year.
  • The bond amount is fixed and cannot be adjusted. There is a misconception that the bond amount is set in stone. In fact, the amount can be negotiated based on the scope of work and the specific requirements of the project, as long as it aligns with city regulations.
  • The bond protects only the city. While it is true that the bond primarily benefits the city by ensuring public improvements are maintained, it also protects the interests of the developer and the principal by ensuring that quality standards are upheld.
  • The Maintenance Bond is the same as insurance. Many people confuse the maintenance bond with insurance. A bond guarantees that specific obligations will be met, while insurance provides coverage against unforeseen events. They serve different purposes in the context of construction projects.

Addressing these misconceptions can lead to better compliance and smoother project execution. Understanding the true nature of the Texas Maintenance Bond helps all parties involved navigate their responsibilities more effectively.

Key takeaways

When dealing with the Texas Maintenance Bond form, there are several important points to keep in mind. Here are key takeaways that will help you navigate the process effectively:

  • Understand the Parties Involved: The form requires the identification of the Principal (the party responsible for the work) and the Surety (the bonding company). Both parties must be clearly defined.
  • Know the Amount: The bond amount must be specified in the form. This is the financial guarantee for the work performed and should reflect the value of the project.
  • Contract Reference: The form references a contract with a Developer. Ensure that this contract is attached and referenced correctly, as it outlines the scope of work.
  • Public Improvements: The bond guarantees the replacement and repair of any faulty workmanship related to public improvements. Familiarize yourself with what these improvements entail.
  • Time Frame: The bond is effective for one year after the work is completed and accepted. Be aware of this timeline for any potential claims.
  • Venue for Enforcement: Any legal action related to the bond must be taken in Collin County, Texas. This is important for understanding where to file any disputes.
  • Signature Requirements: Both the Principal and Surety must sign the bond. Ensure that all signatures are obtained before submission.
  • Resident Agent Information: The Surety must provide the name and address of its Resident Agent. This is crucial for communication regarding the bond.
  • Consistency with Dates: The date on the Maintenance Bond must match the date of the contract. The second page of the bond should have a date that follows the contract date.

By keeping these points in mind, you can ensure that the Texas Maintenance Bond form is filled out correctly and serves its intended purpose. Proper attention to detail can prevent issues down the line.

File Characteristics

Fact Name Description
Purpose The Texas Maintenance Bond ensures that a contractor will repair any defective work for one year after completion.
Governing Law This bond is governed by Texas law, specifically related to construction and public improvements.
Parties Involved The bond involves three main parties: the Principal (contractor), the Surety (bonding company), and the City (municipality).
Amount The bond amount is specified in dollars and must be sufficient to cover potential repair costs.
Venue for Disputes Any legal actions related to the bond must take place in Collin County, Texas.
Contract Requirement The bond must be executed on the same date as the contract and guarantees compliance with the contract's terms.

How to Use Texas Maintenance Bond

Completing the Texas Maintenance Bond form requires attention to detail. Ensure all sections are filled out accurately to avoid any delays in processing. Follow these steps to fill out the form correctly.

  1. Begin by entering the name of the Principal in the first blank space. This is the individual or entity responsible for the work.
  2. In the next blank, write the city where the Principal is located.
  3. Fill in the county where the Principal resides.
  4. Next, write the state, which will be Texas.
  5. Identify the Surety by entering the name of the corporation that will act as the surety on the bond.
  6. Specify the amount of the bond in the space provided, both in words and numerals.
  7. In the section for the Developer, write the name of the developer involved in the contract.
  8. Enter the date the contract was signed in the designated area.
  9. Fill in the name of the addition or subdivision related to the public improvements.
  10. Attach Exhibit "A" that lists the public improvements, as referenced in the form.
  11. Indicate the date the Work is completed and accepted by the City. This date should match the date on Page 1 of the bond.
  12. In the signature area, have the Principal sign and date the form.
  13. The Surety must also sign and date the form. Include the title of the person signing for the Surety.
  14. Provide the address for both the Principal and the Surety in the spaces provided.
  15. Lastly, fill in the name and address of the Resident Agent for the Surety. If the Resident Agent is not a corporation, include a person’s name instead.