Florida Performance BondTwo Statutes. Four Thresholds.
Florida splits its public works bonding rules between two statutes that most guides treat as one. Section 255.05 -- Florida's “Little Miller Act” -- covers state and local government projects. But if you're building for FDOT, a separate statute (§337.18) governs your bond with different thresholds and different rules. Getting them confused can delay your project before it starts. A surety bond is a three-party guarantee -- the surety backs your promise to the project owner that you will finish the work.
Four Thresholds Most Guides Get Wrong
Florida does not have one bonding threshold. It has four, spread across two statutes and local ordinances. The threshold that applies to your project depends on who is awarding the contract. Getting this wrong means either bonding a project that doesn't require it (wasting money) or failing to bond one that does (risking contract rejection).
Above each threshold, the awarding authority must require both a performance bond and a payment bond, each at 100% of the contract price. Below the threshold, bonding may be waived at the official's discretion -- but “may be waived” does not mean “will be waived.” Many public entities require bonds on every project regardless of size.
Florida Performance Bond Thresholds by Awarding Authority
When a bond can be waived vs. when it is mandatory
| Awarding Authority | Statute | Waiver Threshold | Above Threshold |
|---|---|---|---|
| State agencies (non-FDOT) | §255.05(1)(a) | ≤$100,000: may waive | Bond required at 100% of contract |
| State agencies (delegated) | §255.05(1)(a) | $100K–$200K: Secretary may delegate waiver | Bond required at 100% of contract |
| Local government entities | §255.05(1)(b) | ≤$200,000: may waive at discretion | Bond required at 100% of contract |
| FDOT projects | §337.18 | ≤$250,000: may waive | Bond required at 100% of contract |
| Duval County (Jacksonville) | Local Act | ≤$500,000: reported waiver threshold | Bond required at 100% of contract |
For contracts exceeding $250 million, the bond may be set at the largest reasonably available amount (minimum $250M).
Florida Statutes \u00A7\u00A7255.05, 337.18
FDOT is a separate world. Section 255.05 explicitly states it does not apply to FDOT projects. If you're building roads, bridges, or transportation infrastructure under an FDOT contract, §337.18 is your governing statute -- not §255.05. FDOT also allows incremental annual bonds on multi-year maintenance contracts, a provision that doesn't exist under §255.05.
The 2023 Rules That Changed Florida Bonding
Chapter 2023-226, effective October 1, 2023, introduced two changes that affect every contractor holding a Florida performance bond. Most bonding guides haven't caught up.
Mandatory Bond Recording Before Payment
Before 2023, the recording requirement existed but had no teeth. Now, the public entity must withhold all payments until the contractor records the bond in the county where the project is located and delivers a certified copy to the awarding authority. This is not discretionary. A contractor who begins work without recording the bond will not get paid -- no matter how much work is complete. The recording also establishes the public record that subcontractors and suppliers need to identify the surety and file claims.
Restrictive Bond Language Is Now Unenforceable
Some sureties had been inserting language into bond forms that shortened claim deadlines or required arbitration instead of court action -- effectively narrowing the statutory protections that subcontractors rely on. Under the 2023 amendments, any bond language that restricts or limits the rights granted by §255.05 is declared unenforceable. The statute's claim procedures, notice deadlines, and limitation periods cannot be overridden by the bond form. If your current bond contains restrictive language, it will not hold up in court.
Chapter 2023-226 Quick Reference
Official Florida Requirements
"A person who enters into a formal contract with the state or any county, city, or political subdivision thereof, or other public authority, for the construction of a public building, for the prosecution and completion of a public work, or for repairs upon a public building or public work shall be required, before commencing the work, to execute, deliver to the public owner, and record in the public records of the county where the improvement is located, a payment and performance bond."Florida Legislature • Florida Statute \u00A7255.05(1)
The Notice Deadlines That Protect (or Kill) Bond Claims
Florida's performance and payment bond statutes impose strict notice requirements on subcontractors and suppliers. Missing a single deadline can forfeit your entire claim -- even if you are owed money.
Notice of Intent
Non-privity claimants (subs without a direct contract with the GC) must serve written notice of intent on the contractor within 45 days of first furnishing labor or materials. This starts the clock the moment you begin work -- not when you finish.
Notice of Nonpayment
If unpaid, file a Notice of Nonpayment no earlier than 45 days and no later than 90 days after your final furnishing. The window is narrow. File too early and the notice is premature. File too late and your claim rights expire.
Statute of Limitations
Payment bond claims must be filed within one year after the date of performing the labor or delivering the materials. This is a hard cutoff -- courts have no discretion to extend it. Calendar it from your last day of work on the project.
What Actually Happens After a Performance Bond Claim
A performance bond claim does not automatically mean the surety writes a check. The surety has four distinct resolution paths, and it chooses based on what will cost the least while getting the project finished. Understanding these options matters whether you are the contractor, the owner, or a subcontractor.
Pay the Penal Sum
The surety pays the bond amount (up to 100% of the contract price) directly to the project owner. This is the simplest option but often the most expensive for the surety, so it is typically used only when the remaining work is minimal or the surety has no viable alternative.
Finance the Contractor
The surety provides funding and oversight to keep the original contractor on the job. This preserves the existing workforce and subcontractor relationships. The surety monitors progress and controls disbursements. Used when the contractor's problem is financial, not competence.
Cooperative Completion
The surety provides financial support while the project owner manages the completion process, often by hiring a replacement contractor. The surety reimburses completion costs up to the bond penal sum. This option gives the owner more control over contractor selection and scheduling.
Surety Takeover
The surety takes full control of the project, hires its own completion contractor, and manages the remaining work to finish. This gives the surety maximum control over costs but requires the surety to accept full project management responsibility. Used on larger, more complex projects.
The obligee cannot dictate which option the surety chooses. Understanding the surety's perspective is critical -- learn more about how surety bonds differ from insurance and why the surety's investigation process matters.
License Bond vs. Performance Bond: A Florida Confusion That Costs Contractors
Florida contractors regularly confuse two bonds with similar names but entirely different purposes. The DBPR/CILB contractor license bond and a project performance bond are not interchangeable, and having one does not satisfy the other.
DBPR/CILB License Bond
- $10,000–$20,000 fixed amount
- Required for contractors with credit score below 660
- Guarantees compliance with state licensing laws
- Filed with DBPR -- not project-specific
See Florida contractor license bond for full DBPR requirements.
Performance Bond (§255.05)
- 100% of contract price -- varies by project
- Required on public works above threshold
- Guarantees completion of a specific project
- Recorded in county records -- project-specific
Many Florida contractors need both bonds simultaneously.
What a Florida Performance Bond Costs
Performance bond premiums are a percentage of the contract price, not a fixed dollar amount. A $500,000 project at 2% costs $10,000 per year. A $5 million project at 1.5% costs $75,000. The rate drops as the contract size increases because surety underwriting spreads risk over larger revenue. Your personal and business credit, years in business, project experience, and financial statements all factor in. For a deeper breakdown, see our surety bond cost guide.
Florida's construction market is large enough that multiple sureties actively compete for business, which generally keeps rates competitive. Contractors who cannot qualify through standard markets can often obtain bonds through the SBA Surety Bond Guarantee Program, which backs bonds up to $14 million. Learn the full process in our guide to getting a surety bond.
Florida Performance Bond Rate by Credit
Based on a % of Contract bond amount
- Excellent (750+)Rate: 0.5-1.5%$2,500-$7,500*
- Good (680-749)Rate: 1.5-3%$7,500-$15,000*
- Fair (620-679)Rate: 3-5%$15,000-$25,000*
- Below 620Rate: 5-10%$25,000-$50,000*
*Estimates based on $500,000 contract. Actual rates depend on contract size, experience, and financials.
Florida Performance Bond Requirements at a Glance
Key details for contractors, project owners, and subcontractors
Public Works (§255.05)
FDOT Projects (§337.18)
Private Construction Projects: A Different Set of Rules
Florida law does not mandate performance bonds on private projects, but commercial lenders and sophisticated property owners frequently require them as a condition of financing or contract execution. Private project bonds are governed by §§713.23 and 713.245 -- entirely separate statutes from the public works §255.05.
A dual obligee rider is standard on lender-financed private projects. This rider names both the property owner and the construction lender as obligees on the bond, protecting the lender's collateral interest if the contractor defaults mid-project. The dual obligee structure changes the claim dynamic because either obligee can trigger the bond independently. If you're working on private projects where the owner requires bonding, the same surety underwriting process applies -- but the bond form, claim procedures, and applicable statutes differ from public works bonds.
Do not assume public bond forms work for private projects. The statutory framework is different (§§713.23/713.245 vs. §255.05), the claim procedures are different, and the obligee structure may include a lender. Always confirm which statute governs before the bond is issued.
Florida Performance Bond Questions
Answers covering §255.05, FDOT §337.18, 2023 law changes, and claim procedures
What is the difference between §255.05 and §337.18 for Florida performance bonds?
Section 255.05 is Florida's "Little Miller Act" covering all public works projects EXCEPT those under the Florida Department of Transportation. FDOT projects are governed exclusively by §337.18, which has its own threshold ($250,000 vs. $200,000 for local government under §255.05), its own waiver procedures, and its own rules for multi-year maintenance contracts. If you are bidding on an FDOT project, your bond requirements come from §337.18 -- not §255.05. This distinction matters because the statutes differ on waiver thresholds, claim procedures, and bond forms. A bond written to §255.05 may not satisfy FDOT requirements.
What changed with Florida's 2023 bond law amendments (Chapter 2023-226)?
Effective October 1, 2023, Chapter 2023-226 strengthened two critical provisions. First, the contractor must now record the bond in the county where the project is located AND provide a certified copy to the public entity before any payment can be made. Second, any bond language that attempts to restrict or limit the statutory rights granted under §255.05 is declared unenforceable. This means sureties cannot insert restrictive claim procedures or shortened limitation periods into the bond form that would override the statute. The recording requirement is not optional -- until the bond is recorded and a certified copy delivered, the public entity is legally required to withhold payment.
How do subcontractors and suppliers file claims against a Florida performance bond?
Non-privity claimants (anyone without a direct contract with the contractor) must serve a written notice of intent on the contractor within 45 days of first furnishing labor, services, or materials. If unpaid, the claimant must then file a Notice of Nonpayment no earlier than 45 days and no later than 90 days after their final furnishing of labor or materials. The payment bond claim must be filed within one year after the date of performing the labor or delivering the materials. Missing the 45-day initial notice deadline can destroy a subcontractor's claim rights entirely. The bond must be recorded in the county clerk's office, and claimants can obtain a copy from the county records.
Is a DBPR/CILB contractor license bond the same as a Florida performance bond?
No -- these are completely different bonds serving different purposes. A DBPR/CILB contractor license bond ($10,000-$20,000) is a one-time licensing requirement from the Florida Department of Business and Professional Regulation for contractors with personal credit scores below 660. It guarantees compliance with state licensing laws. A performance bond, by contrast, is project-specific -- it guarantees you will complete a specific construction contract according to its terms. A license bond does not satisfy a project owner's performance bond requirement, and a performance bond does not satisfy DBPR licensing requirements. Many Florida contractors need both.
What happens when a project owner makes a claim on a Florida performance bond?
The surety has four options after a valid default is declared: (1) pay the bond penal sum directly to the obligee, (2) finance the original contractor to complete the work with surety oversight, (3) arrange cooperative completion where the surety provides financial support while the obligee manages a replacement contractor, or (4) take over the project entirely by hiring a completion contractor. The surety's choice depends on the project's status, the contractor's financial condition, and the cost to complete. The obligee cannot simply demand cash -- the surety has the right to investigate and choose its remedy. For performance bond claims, the statute of limitations is five years from the date of default.
Do Florida private construction projects require performance bonds?
Florida law does not require performance bonds on private projects. However, private owners and lenders frequently require them contractually, especially on projects financed through commercial lending. Private project bonds are governed by §§713.23 and 713.245 -- separate statutes from the public works §255.05. A dual obligee rider is common on lender-financed private projects, naming both the owner and the lender as obligees on the bond. This protects the lender's collateral interest if the contractor defaults. Private bond claim procedures differ from public bond procedures, so the bond form and applicable statute matter.
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Other Florida Bonds
Additional surety bonds available in Florida
Nearby States
Performance bonds in neighboring states
Need a different Florida bond? See our Florida contractor license bond page for DBPR requirements, or visit our performance bonds hub for nationwide coverage. Explore bid bonds if you are at the pre-award stage. Our surety bond cost guide breaks down pricing across every bond type.
All content is researched from official state and federal sources (.gov) and verified before publication. BuySuretyBonds.com works with Treasury-certified, A- minimum rated surety carriers serving all 50 states.
Your Bid Is Only as Strong as Your Bond
Florida public entities cannot award contracts to unbonded contractors above the statutory threshold. Get your performance bond approved before the bid deadline -- not after. We work with OIR-licensed sureties who understand §255.05, §337.18, and the 2023 recording requirements.