They are similar, but not the same. On a private project where a governmental entity (i.e., state, county, city, school district, etc.) is not involved, an unpaid general contractor, subcontractor, or supplier can file a lien against the property. On a public works project where a governmental entity is involved, the same contractors or suppliers (but not the general contractor) would file a bond claim against the surety which is also known as a bonding company.

Both documents seek payment for unpaid work and both documents require similar notice and filing requirements. A bond can be thought of as money being held and guaranteed by an insurance company. A lien is a claim against the actual property where the unpaid work was performed.

In Texas, it is generally not an option to file a lien against public property. The general contractor for a public project valued over $25,000.00 is required to purchase a bond for the benefit of subcontractors and suppliers. For that reason, subcontractors and suppliers usually need to file a bond claim (rather than a lien) if they don’t get paid on a public works project.

Bonds are also occasionally used by general contractors on large private commercial projects.