Performance Bonds in Florida Construction
A performance bond guarantees contractor completion per contract terms. Required on FL public projects (Section 255.05); optional on private. Three parties: principal, obligee, surety. Cost: 1-3% of contract. Default: surety completes, pays cost, or settles. Owner must provide written notice and cure opportunity before claiming.
Structure
- Principal: contractor
- Obligee: owner (protected)
- Surety: bonding company (guarantor)
Cost
- 1-3% of contract amount
- One-time premium at project start
- Based on contractor strength and risk
Default Process
- Written notice to contractor + surety
- Cure period (if bond requires)
- Surety: complete, pay, or settle
Related Terms
- Payment Bond — Subcontractor protection
Barnes Walker Construction Law
Barnes Walker’s attorneys handle performance bond claims in Florida. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC