Construction Bond Claims in Florida: What South Florida Contractors and Property Owners Need to Know
Bonds are a valuable tool when Boca Raton construction projects run into problems. They provide financial protection when a contractor fails to perform or a subcontractor isn’t paid. However, Florida bond claims require careful attention to deadlines and procedural requirements.
Our experienced Boca Raton construction litigation lawyer explains how construction bonds work, when they apply, and important factors that impact your rights in a claim.
How Florida Construction Bonds Work and When They Apply
Florida construction bonds are three-party agreements that involve the principal (usually the contractor), the party protected by the bond, and the bonding company that guarantees the principal’s obligations.
Payment and performance bonds are required on most public construction projects under Section 255.05 of the Florida Statutes. On private projects, bonds are not always required, but owners and contractors frequently include them. Common situations where bonds may apply include:
- A Florida contractor abandons a project or fails to complete the work.
- A subcontractor or supplier does not receive payment from the general contractor.
- A surety bond was required as part of a public works project.
- A contractor’s defective work causes financial losses that exceed their ability to pay.
- Payment disputes on a privately funded project (where the owner required a bond at the outset).
- A general contractor is insolvent, leaving subcontractors and suppliers without recourse.
Florida law imposes strict notice and filing requirements on bond claims, and missing a deadline can jeopardize your right to recover.
Key Requirements When Filing a South Florida Construction Bond Claim
If you face any of the above issues and are filing a Boca Raton construction bond claim, key requirements you need to be aware of include:
- If you don’t have a contractual relationship with them, you must serve a Notice to Contractor within 45 days, letting them know you’re seeking bond protection.
- If you remain unpaid, you must serve a Notice of Nonpayment on both the contractor and the bonding company on public projects within 90 days of the last date on which they furnished labor, materials, or services.
- You have one year to file a lawsuit to enforce a bond claim on a public project.
- For private projects, bond claim requirements depend on the specific terms of the bond.
Keep in mind that bonding companies have the right to investigate claims and raise a defense. To protect your rights, gather and preserve all contracts, invoices, payment records, and communications.
Request a Consultation Today With Our Experienced Boca Raton Construction Litigation Lawyers
When a Boca Raton construction project goes wrong, filing a construction bond claim can be your most effective path to recovery. Our experienced Boca Raton construction litigation lawyers help contractors, subcontractors, suppliers, and property owners throughout South Florida evaluate bond claims, meet critical deadlines, and pursue the compensation they deserve.
To request a consultation, contact Neuman Law, P.A. today.
We protect clients in Boca Raton, Palm Beach County, Martin County, Broward County, Miami-Dade County, Monroe County, and Hillsborough County.
Sources:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0200-0299/0255/Sections/0255.05.html
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0300-0399/0337/Sections/0337.18.html