Florida construction bonds are always required by a specific party: a public agency, a private owner, a lender or a local building department. Knowing who is asking, and under what rule, tells you which bond to line up and when.
This guide sorts the common Florida construction bonds by who requires them. It is general information, and the bid documents, contract or local ordinance on your job always control. For bond options and to apply, see the Florida construction bonds page.
The main Florida construction bonds at a glance
Most Florida construction bonds fall into two groups. Contract bonds tie to a particular project. License and permit bonds tie to the contractor’s right to work in a jurisdiction.
| Bond | Who usually requires it | What it backs |
|---|---|---|
| Bid bond | Public owners, and some private owners, in the bid documents | That the winning bidder signs the contract and provides the required bonds |
| Performance bond | Public owners under s. 255.05; private owners and lenders by contract | That the work is completed according to the contract |
| Payment bond | Public owners under s. 255.05; private owners who use s. 713.23 | That subcontractors, laborers and suppliers get paid |
| Maintenance bond | Some counties, cities and owners, often for site or right-of-way work | Repair of defects for a set period after completion |
| License or permit bond | Some county and city building departments | Compliance with local codes and licensing rules |
If you want the general mechanics of how these bonds connect over a project’s life, this explainer covers how bid, performance and payment bonds work together. The rest of this article stays focused on Florida rules and the parties that impose them.
Public works: Florida construction bonds under s. 255.05
Florida’s public-works bond law is section 255.05, Florida Statutes, sometimes called Florida’s “Little Miller Act.” It applies when a contractor enters a formal contract with the state, a county, a city, another political subdivision or public authority for the construction of a public building or public work, or for repairs to one.
On those contracts, the statute requires the contractor to furnish a payment and performance bond written by a surety insurer authorized to do business in Florida, before work begins. A few points from the statute matter in practice:
- Recording. The contractor must record the bond in the public records of the county where the improvement is located and give the public entity a certified copy before starting work.
- Thresholds and exemptions. Smaller contracts can fall outside the requirement. State contracts below the threshold in s. 255.05 do not require the bond, and other public bodies have discretion to exempt contracts below a separate threshold. Read the statute for the current figures and confirm with the awarding agency.
- Alternative security. The statute lets a contractor file certain alternative forms of security, such as cash or a certified check, in place of the bond. In practice most contractors use a surety bond so they do not tie up working capital.
Transportation work has its own statute. Florida Department of Transportation contracts fall under section 337.18, which requires a surety bond from the successful bidder covering performance and payment, with limited waivers the department can grant. For more on the performance side, see Florida performance bonds.
Who requires a bid bond?
A bid bond is required by the project owner that issues the solicitation, most often a public agency such as a state department, county, city, school district or utility. The requirement appears in the invitation to bid or bid documents. Some private owners and general contractors also ask for bid bonds from bidders or subcontractors.
Florida law sets the payment and performance bond on public work, but the bid security on a given job is usually spelled out in the solicitation itself. That document typically states whether a bid bond is required, the amount or percentage of the bid it must cover, whether cash or a certified check is accepted instead, and whether a specific bond form must be used. If the bid security is missing or wrong, the agency can reject the bid.
The bid bond backs a simple promise. If you are the selected bidder, you will sign the contract and furnish the performance and payment bonds the contract requires. If you walk away, the owner can make a claim against the bid bond. Because the surety is effectively pre-approving you for the final bonds, underwriting for a bid bond looks at the same capacity questions as the performance bond that would follow. More on that product is on the Florida bid bonds page.
Private projects: owners, lenders and s. 713.23
Florida’s bond statutes generally do not require a performance bond on an ordinary private project. On private work, Florida construction bonds usually come from the contract. The usual sources are:
- The owner or developer, who writes bond requirements into the prime contract to protect against non-completion.
- The construction lender, which may make performance and payment bonds a condition of funding.
- The general contractor, who may require subcontract bonds from major trade contractors.
Payment bonds on private work have a statutory hook. Under section 713.23, Florida Statutes, an owner can use a payment bond furnished by the contractor to exempt itself under Florida’s construction lien law. The bond must be in at least the amount of the original contract price, and a copy is attached to the notice of commencement when that notice is recorded. Subcontractors and suppliers then look to the bond, rather than a lien on the property, for payment, and the statute sets notice requirements they must follow to recover.
That is why some private owners and lenders ask for a payment bond even when they are comfortable with the contractor’s ability to finish. It keeps the property clear of liens from lower-tier parties. If your private contract mentions s. 713.23, have the contract and bond form reviewed so the bond meets the statute’s terms.
Florida contractor license and permit bonds
State certification through the Construction Industry Licensing Board, part of the Florida Department of Business and Professional Regulation, focuses on exams, experience, insurance and financial responsibility. There is no general license bond that every state-certified contractor must post simply to hold a license. The board’s financial stability rules can involve a bond or letter of credit for some applicants who do not meet its credit standards, so check the current requirements with DBPR if that applies to you.
Local rules are where license and permit bonds tend to show up. Some Florida counties and cities require a bond before they issue a local certificate of competency, register a contractor or issue permits. Orange County, for example, requires a contractor performance bond filed with its Division of Building Safety, executed in the name of the license holder. Requirements, bond forms and amounts differ from place to place, and they change. Check with the county or city building department where you plan to pull permits.
Single Source Surety’s Florida contractor bonds page covers these local license and permit bonds, which sit alongside the project-based Florida construction bonds above.
Maintenance bonds required by some counties and owners
A maintenance bond backs the contractor’s obligation to fix defects in materials or workmanship for a stated period after the work is accepted. In Florida, they often come up on subdivision improvements, roadway and right-of-way work, and utility installations that a county or city will take over once complete. Some public owners require one as a condition of accepting the work, and some private owners include one in the contract.
The length of the maintenance period, the bond amount and the form are set by the local ordinance, development order or contract. Ask the obligee for those details before you request the bond so it matches what they will accept.
How to find out which bonds your Florida job needs
Each project sets its own Florida construction bond requirements, so the answer is in the documents and with the party requiring the bond, which is called the obligee. Work through these steps before you bid or sign:
- Read the bid documents. The invitation to bid, instructions to bidders and general conditions usually list every bond, its amount and the required form.
- Read the contract. On private jobs, the bond requirements may sit in the prime contract, a lender’s loan agreement or a subcontract.
- Check whether a statute applies. Public building and public works contracts fall under s. 255.05; FDOT work falls under s. 337.18; private payment bonds used to avoid liens fall under s. 713.23.
- Check local rules. Ask the county or city building department about license, permit or maintenance bonds before you pull permits.
- Ask the obligee directly. Confirm the exact obligee name, the bond amount, any required form, and whether the bond must be recorded or filed.
- Talk to your surety early. Bonds on large jobs require underwriting, and having financial statements and work-in-progress schedules ready speeds that up.
Frequently asked questions
Do Florida contractors need to be bonded?
It depends on the job and the jurisdiction. Public building and public works contracts generally require payment and performance bonds under s. 255.05. Private owners and lenders may require bonds by contract. Some counties and cities require license or permit bonds. Check each project and each local building department.
Can I use cash instead of a bond on Florida public work?
Section 255.05 allows certain alternative forms of security, such as cash or a certified check, in place of the payment and performance bond. Bid documents may set their own rules for bid security. Most contractors use surety bonds to keep working capital free.
What is the Florida Little Miller Act?
It is the common name for s. 255.05, Florida Statutes. It requires contractors on qualifying public building and public works contracts to furnish and record a payment and performance bond from a surety authorized in Florida.
Is a payment bond required on private projects in Florida?
Not by default. A private owner or lender may require one by contract, and an owner can use a payment bond under s. 713.23 as an alternative to the lien process, with subcontractors and suppliers making claims against the bond.
Does the State of Florida require a contractor license bond?
State certification does not carry a general license bond for every contractor, though the licensing board’s financial stability rules can involve a bond for some applicants. Many local jurisdictions have their own bond requirements, so check with your county or city.
How do I know what bond amount I need?
The obligee sets the amount for Florida construction bonds. Public bonds follow the statute and the bid documents, private bonds follow the contract, and local bonds follow the ordinance. Confirm the amount and form with the party requiring the bond.
Get the bonds your Florida project requires
Once you know which bonds the job calls for and who the obligee is, gather the bid documents or contract, the required bond forms and your financial information. Then visit the Single Source Surety Florida construction bonds page to request bid, performance, payment or maintenance bonds for your project.
This article is general information, not legal advice. Bond requirements vary by project, agency and local jurisdiction; the governing statute, contract and bid documents control.