In Florida, bonds are required on all public construction projects over $200,000, per Section 255.05 of Florida Statutes. Bonds are especially important in this case because subcontractors and suppliers cannot lien public property due to sovereign immunity.
There are a few types of bonds that construction and service contractors may encounter on public works projects and some commercial projects.
Provides financial assurance that the bid has been submitted in good faith and the successful bidder will enter the contract at the price bid and provide required performance and payment bonds. The bid bond is also referred to as a bid security or bid guarantee. Bid bonds are a tool used by Owners to pre-qualify bidders because they appreciate the strict underwriting involved in the surety approval process.
Performance and Payment Bonds
The Performance Bond protects the owner from financial loss if the contractor fails to perform per the plans, spec and contract. The Payment Bond assures the Owner that the contractor will pay certain workers, subcontractors, and suppliers.
If you have a current bond need, or looking to get pre-qualified
Commercial surety bonds
Commercial surety bonds range from license and permit surety bonds such as motor vehicle dealer, mortgage broker, and contractor license surety bonds to business service, ERISA, and other surety bonds not required by state statute but by other companies in order to do business with them. Please take a look at the list below and select the bond that best fits your needs. Most commercial bonds are annual bonds, as they renew every year for as long as they are needed. The premiums for these are paid annually. Underwriting is based on the indemnitors personal credit, experience, as well as corporate and personal financial strength.