What does a Florida public construction bond look like for public projects? As a starter, Florida Statute s. 255.05 states that the bond may be in substantially the same form as depicted below. This is a common public construction bond form that contains both payment and performance bond obligations. Many times, however, the public entity wants the general contractor to submit a separate payment bond and performance bond where the obligations are substantially the same as those depicted below. Importantly, from an owner’s perspective, this is pretty good bond form when it comes to triggering performance bond obligations because it does not require specific notice separate than the notice that would be required to default the general contractor (bond principal) under the prime contract.
PUBLIC CONSTRUCTION BOND
Bond No. (enter bond number)
BY THIS BOND, We ____, as Principal and ____, a corporation, as Surety, are bound to ____, herein called Owner, in the sum of $____, for payment of which we bind ourselves, our heirs, personal representatives, successors, and assigns, jointly and severally.
THE CONDITION OF THIS BOND is that if Principal:
1. Performs the contract dated ____, ____, between Principal and Owner for construction of ____, the contract being made a part of this bond by reference, at the times and in the manner prescribed in the contract; and
2. Promptly makes payments to all claimants, as defined in Section 255.05(1), Florida Statutes, supplying Principal with labor, materials, or supplies, used directly or indirectly by Principal in the prosecution of the work provided for in the contract; and
3. Pays Owner all losses, damages, expenses, costs, and attorney’s fees, including appellate proceedings, that Owner sustains because of a default by Principal under the contract; and
4. Performs the guarantee of all work and materials furnished under the contract for the time specified in the contract, then this bond is void; otherwise it remains in full force.
Any action instituted by a claimant under this bond for payment must be in accordance with the notice and time limitation provisions in Section 255.05(2), Florida Statutes.
Any changes in or under the contract documents and compliance or noncompliance with any formalities connected with the contract or the changes does not affect Surety’s obligation under this bond.
DATED ON ____, ____.
(Name of Principal)
By (As Attorney in Fact)
(Name of Surety)
For more information on important bullet points regarding Florida Statute s. 255.05, check out this article. It is always a good idea to consult with counsel so that you understand your rights and obligations when it comes to public construction bonds.
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