Contract Bonds in Florida - Bid & Performance Bonds

Contractor reviewing blueprints and contract bonds in Florida for construction and public projects

Contract bonds are a category of surety bonds commonly required for construction and public projects in Florida. If you’re bidding on a construction project or have been awarded a contract in the state, you may be required to obtain a contract bond. Contract bonds are commonly required by public agencies, municipalities, developers, and private project owners to reduce financial risk and ensure contractual obligations are met.

At American US Insurance, we help contractors and businesses obtain contract bonds in Florida quickly and correctly, whether the project is local or statewide.

What Are Contract Bonds?

A contract bond is a type of surety bond that guarantees a contractor will fulfill the terms of a contract. If the contractor fails to meet those obligations, the bond provides financial protection to the project owner.

Contract bonds are widely used in:

  • Public construction projects

  • Government contracts

  • Private commercial developments

  • Infrastructure and municipal work

They help owners move forward with confidence while holding contractors accountable.

Types of Contract Bonds We Offer in Florida

Bid Bonds

A bid bond guarantees that a contractor submitting a bid will:

  • Enter into the contract if selected

  • Provide the required performance and payment bonds

Bid bonds are often required for public projects and competitive bidding situations.

Performance Bonds

A performance bond guarantees that the contractor will complete the project according to the contract terms, plans, and specifications.

If the contractor defaults, the surety may:

  • Arrange completion of the project

  • Compensate the project owner up to the bond amount

Performance bonds are among the most commonly required contract bonds in Florida.

Payment Bonds

A payment bond helps ensure that subcontractors, laborers, and material suppliers are paid for their work. These bonds reduce lien risk for project owners and are frequently required alongside performance bonds.

Maintenance Bonds

A maintenance bond (also known as a warranty bond) guarantees that work performed will remain free from defects for a specified period after project completion.

These bonds are often required for:

  • Road and infrastructure projects

  • Public improvement work

  • Municipal construction contracts

Supply Bonds

A supply bond guarantees that a supplier will deliver materials or equipment according to the contract terms. These bonds are less common but may be required for certain public or large-scale projects.

When Are Contract Bonds Required in Florida?

Contract bonds are commonly required when:

  • Working on public or government-funded projects

  • Bidding on municipal or county contracts

  • Performing large private commercial projects

  • Contract language specifically mandates bonding

Bond requirements vary by project owner, municipality, and contract type. Correct bond wording and amounts are critical for approval.

How to Get a Contract Bond in Florida

The process typically includes:

  1. Identifying the bond type and required amount

  2. Reviewing the contract or bid specifications

  3. Submitting an application and basic financial information

  4. Receiving approval and issuing the bond

  5. Filing the bond with the project owner or agency

Some contract bonds require underwriting review, while others can be approved more quickly depending on project size and experience.

Contract Bonds for Florida Contractors & Businesses

We assist contractors and businesses throughout:

  • Miami & Miami-Dade County

  • Kendall

  • Hollywood

  • Orlando

  • All of Florida

Whether you’re bidding locally or operating statewide, we help ensure your contract bond meets the exact requirements of the obligee.

Related Surety & Insurance Services

Contract bonds are often required in conjunction with other types of coverage. Learn more about Surety Bonds in Florida

Get a Contract Bond Quote in Florida

If you need a bid bond, performance bond, payment bond, or maintenance bond in Florida, our team will guide you through the process and help you avoid costly delays.

Call Now for Contract Bond Assistance

Frequently Asked Questions About Contract Bonds in Florida

What is a contract bond in Florida?

A contract bond is a type of surety bond that guarantees a contractor will fulfill the obligations outlined in a contract. It protects the project owner if the contractor fails to perform.

Are contract bonds required for all construction projects in Florida?

Not all projects require contract bonds. They are most commonly required for public projects, government contracts, and large private developments.

What is the difference between a bid bond and a performance bond?

A bid bond guarantees a contractor will honor their bid, while a performance bond guarantees the project will be completed according to the contract.

How long does it take to get a contract bond in Florida?

Timing varies based on the bond type and underwriting requirements. Some contract bonds can be issued quickly once information is reviewed.