Florida Performance Bond Guide
Performance bonds are commonly required on Florida public works and many private construction contracts. This concise, scannable guide explains what a performance bond does, who needs one, how cost is determined, what underwriters review, a short checklist you can act on, and practical filing tips to avoid rejections.
FL performance bond
A FL performance bond guarantees the contractor (principal) will complete the work per contract terms and specifications. It protects the project owner (obligee) from additional costs if the contractor defaults or fails to perform.
Florida bond cost
Premiums depend on the bond amount, contractor credit, company financials, experience, and claims history. Strong financials and a clean claims record lower annual premiums; weak credit can require higher rates or collateral.
Performance bond cost
Large contracts and higher perceived project risk raise the premium. Public works often require both performance and payment bonds, which increases the overall bonding need and may affect pricing.
FL bond underwriting
Underwriters review financial statements, tax returns, work history, backlog, trade references, and key personnel. For substantial bonds expect compiled or audited financials and a detailed work‑in‑progress schedule.
FL bond application
Provide the exact obligee name, contract amount, scope, and start/completion dates. Include 3–12 months of bank statements, the most recent tax return, and signed credit authorizations for principals.
Performance bond filing
Deliver the executed bond exactly as the contract requires—sometimes recorded with the county clerk, sometimes delivered to the owner. Incorrect forms, misnamed obligees, and missing signatures are the most common rejection reasons.
FL payment bond
Many Florida public projects require payment bonds to protect subcontractors and suppliers. Payment bonds often equal 100% of the contract amount on government work; private owners may set their own thresholds.
Performance bond checklist
Confirm the exact obligee name and required bond form in the contract packet.
Gather business formation documents, EIN, contractor license, and local registrations.
Prepare 3–12 months of bank statements and the latest tax return.
Compile backlog, key project references, and list of key personnel.
Sign credit authorizations for principals and request a preliminary broker quote.
Performance bond alternatives
If traditional surety underwriting is constrained by credit, consider posting collateral, a partial collateral arrangement, 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 discussions as soon as you receive a notice of award.
Keep a rolling prequalification packet ready to speed approvals.
Order larger bonds several business days before deadlines.
Action: obtain the exact bond form from the contract, assemble the checklist documents, contact a Florida surety broker, and authorize credit checks so underwriting can proceed.