Florida Bid Bond Guide
A Florida bid bond ensures owners that a bidder will honor its offer and obtain required performance and payment bonds if awarded. This practical, contractor‑focused guide explains what bid bonds cover in Florida, who needs them, common pitfalls, real examples, and fast steps you can take to win bids and close the deal.
Florida bid bond
What it is: a three‑party guarantee (owner, bidder, surety) that the low bidder will enter the contract and post required bonds. If the successful bidder refuses or cannot secure bonds, the obligee can claim damages up to the bond penalty.
FL bid bond
When owners require it: public agencies and many large private owners include bid bond language in solicitations to screen bidders and protect re‑procurement costs if the low bidder defaults.
Bid bond Florida
Typical structure: most bid bonds are expressed as a percentage of the bid—commonly 5%–10% on Florida public works. Read the solicitation carefully; some agencies use different thresholds or base calculations on total potential award.
Bid bond for contractors
What contractors should keep ready: current license, insurance certificates, compiled financials, a short claims history, and a surety capacity letter. For joint ventures include the JV agreement and partner financials.
How to get bid bond
Contact a surety broker early and confirm the obligee accepts your surety.
Provide 2 years of financials, current backlog, license, insurance, and references.
Request the obligee‑approved bond form and deliver the executed bond with your bid.
Bid bond requirements
Common traps: wrong obligee name, incorrect percentage, unsigned surety forms, or late delivery. Some solicitations accept certified checks or letters of credit — verify acceptable alternatives in writing.
Public works bid bond
Public projects often require original paper bonds, notarization, or hand‑delivery. Confirm whether electronic submissions are acceptable and whether the agency maintains an approved surety list.
Bid bond amounts
How they’re set: expressed as a percent of the base bid, alternates, or maximum contract value. Misreading the base used for calculation is an easy disqualifier — double‑check the solicitation.
Bid bond application
Make a reusable packet: compiled financials, bank references, insurance certificates, license copy, one‑page claims history, and a short company profile. A consistent packet shortens underwriting and speeds issuance.
Bid bond examples
Example 1: A county road project required 10% bond; the low bidder couldn’t secure performance bonds and the owner claimed the bid bond to cover re‑procurement costs. Example 2: A bidder submitted a personal check instead of an accepted bond form and was disqualified.
Practical Tips For Contractors Keep a surety broker on call. Update your bid packet each quarter. Confirm obligee name and bond percentage on every solicitation. Get written confirmation for any alternate instrument. Disclose prior claims up front — transparency speeds approvals.
Common Pitfalls To Avoid Late bond delivery, wrong obligee name, relying on verbal acceptances, and using unacceptable instruments can cost you the job and trigger financial exposure.
After You Win With A Bid Bond Secure performance and payment bonds immediately. If you are unable to obtain post‑award bonds, notify your surety right away — failure to do so may result in a bid bond claim and reputation damage.
Quick Action Steps
Review solicitation bonding language now.
Call your surety broker to confirm acceptable form and timing.
Attach your executed bid bond and packet to the bid and retain originals.