If you are a contractor working on a Florida public construction project (excluding an FDOT project) with a contract value in excess of $200,000, then you need to furnish the public entity with a payment and performance bond. Prior to performing work, the payment and performance bond must be recorded in the public records where the construction is being performed and a certified copy of the recorded bond must be provided to the public entity. This is important for two main reasons: (1) the public entity does not have to pay the contractor unless the the bonds are recorded and the public entity receives a certified copy of the bonds and (2) subcontractors, suppliers, and sub-subcontractors needs to be able to obtain the recorded payment bond in order to ensure their rights are properly preserved.
For more information, check out this article on Important Bullet Points for Payment Bonds on Florida Public Projects. You can also look at Florida Statute s. 255.05 (just make sure you are looking at the most current version).
Please contact David Adelstein at firstname.lastname@example.org or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.