Contract Bonds · Florida
Florida Construction Bonds: Bid, Performance & Payment Bonds
Project owners and lenders require a bid bond to pitch and a performance bond to start. We build your Florida bonding program with multiple A-rated sureties to keep you bidding.
What is a performance and payment bond in Florida construction?
A performance bond guarantees to the project owner or municipality that a contractor will complete the construction work exactly according to the contract specifications. The companion payment bond guarantees that all subcontractors and material suppliers will be fully compensated for their work, preventing mechanic's liens against the Florida property.
Florida Contract Bond Requirements on Public Jobs
Public owners must require bonds by law. Private owners and lenders decide in the contract. Our guide to payment bond vs. performance bond explains who each one protects.
| What the law requires | What it means for your bid |
|---|---|
| A payment and performance bond on public construction contracts with the state, counties, cities and other public entities (§ 255.05(1)(a), Florida Statutes) | Plan your bonding before you bid a public job. The bond is recorded in the county where the work is done. |
| No bond is required on state work of $100,000 or less, and other public owners may waive it on contracts of $200,000 or less (§ 255.05(1)(a)) | Smaller public jobs may not need a bond, but the owner decides. Read the bid documents. |
| The bond amount equals the contract price (§ 255.05(1)(a)) | A $500,000 contract needs a $500,000 performance and payment bond. Your capacity has to cover it. |
| Federal construction contracts over $150,000 require performance and payment bonds under the Miller Act (FAR 28.102-1) | Federal jobs between $35,000 and $150,000 require other payment protection the contracting officer chooses. |
These are the legal thresholds, not a quote. Bid documents may require more, and private owners and lenders set their own terms.
The Four Contract Bonds Florida Contractors Need
Bid bond
Guarantees that if you win, you will sign the contract and post the performance and payment bonds.
Performance bond
Guarantees that you will finish the job according to the plans, specifications and contract.
Payment bond
Guarantees that your subcontractors, laborers and suppliers get paid for their work and materials.
Maintenance bond
Guarantees repairs of defects for a set period after the job is accepted, often one year.
Bonding Capacity: Single-Job vs. Aggregate Limit
A surety sets two numbers for every contractor. Both decide which jobs you can bid. Other bonds a Florida business may need are listed on our surety bonds page.
Single-job limit
The largest contract the surety will bond on its own. It grows with your working capital, your net worth and the size of the jobs you have finished well.
Aggregate limit
The total of all your bonded work in progress at one time. When a big job finishes, that capacity comes back. Sureties watch your work-in-progress schedule closely before they approve a new bond.
Have This Ready for Your Contract Bond Quote
- The bid documents, or the bond form and the contract price.
- Your company's year-end financial statements and a current work-in-progress schedule.
- A list of your largest finished jobs, with owners and contract amounts.
- Your contractor license number and your bank line of credit, if you have one.
Who writes bid and performance bonds in Miami?
American US Insurance is an independent, bilingual insurance agency headquartered in Kendall that writes bid, performance, payment and maintenance bonds for contractors across South Florida. As your bonding agent, we present your financials and your work history to the sureties most likely to support your next job. Then we compare contract bonds from multiple A-rated sureties and help you grow your capacity over time. We bond contractors in Miami, Doral, Hialeah and Fort Lauderdale, and across Florida.
Additional Business Insurance Options
Bonding Guides for Florida Contractors
Business Owners Policy vs. General Liability: Which Fits?
Business owners policy vs. general liability: a BOP adds property and business income coverage to liability. How to tell which your Florida business needs.
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Payment Bond vs. Performance Bond: How Each One Works
Payment bond vs. performance bond: one guarantees the job gets finished, the other that subs and suppliers get paid. When Florida public jobs need both.
Read More →Get a Performance Bond Quote in Miami
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