Florida Payment Bond Guide
Payment bonds protect subcontractors, suppliers, and laborers when a prime contractor fails to pay. This practical guide covers what Florida payment bonds do, when they’re required, how cost is determined, what underwriters review, a simple checklist you can act on, and filing tips to avoid costly rejections.
Fl payment bond
A FL payment bond guarantees payment for labor and materials furnished to a bonded contractor. On many public jobs in Florida the payment bond is required to exempt the owner from lien claims and protect downstream parties.
Florida payment bond cost
Premiums depend on bond amount, contractor credit, company financials, experience, and claims history. Well‑organized financials and strong credit usually reduce premiums and the need for collateral.
Payment bond requirements FL
Florida statutes and local agencies set thresholds and procedures for payment bonds on public projects. Private owners can also require payment bonds by contract. Confirm the exact bond requirement in the solicitation or contract packet.
FL bond underwriting
Underwriters review tax returns, balance sheets, bank statements, backlog, trade references, and principals’ credit. Larger bonds often require compiled or audited financials and a detailed schedule of work‑in‑progress.
FL bond application
Provide precise contract details: obligee name, contract amount, scope, start and completion dates, and delivery instructions. Include business formation documents, EIN, 3–12 months of bank statements, the latest tax return, and signed credit authorizations for principals.
Payment bond claims Florida
Claimants must follow notice and filing timelines set by statute and the bond form. Common steps include serving notice of nonpayment, submitting proof of unpaid labor or materials, and filing suit within statutory limits if unresolved.
Payment bond checklist
Confirm the exact obligee name and required bond form in the contract packet.
Gather contractor license, EIN, formation documents, and local registrations.
Prepare 3–12 months of bank statements and the most recent tax return.
Compile subcontract agreements, change orders, and supplier invoices.
Request a preliminary quote from a surety broker and sign credit authorizations.
Payment bond filing Florida
Deliver the executed bond exactly as the contract requires—sometimes recorded with the county clerk, sometimes delivered directly to the owner. The most common rejections are incorrect form, misnamed obligee, or missing signatures.
Payment bond alternatives FL
If traditional surety underwriting is constrained by credit, options include posting collateral, partial collateral arrangements, parent company guarantees, or third‑party guarantees. Discuss alternatives early with a surety broker.
Practical tips for contractors
Confirm obligee wording before ordering the bond. Start bonding conversations when you bid or upon notice of award. Keep a rolling prequalification packet so underwriting can move quickly. Order larger bonds several business days before the deadline.
Action: get the exact bond form from the contract, assemble your checklist documents, contact a Florida surety broker, and authorize credit checks so underwriting can proceed.