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One of the primary requirements to obtaining a contractors license in FL is to secure Liability Insurance , however being bonded is not required.
Here is a brief overview of five different types of contract or construction bonds we can help you secure for your project. Bid Bonds. Owners use bid bonds to pre-qualify contractors that submit proposals for construction project contracts. Performance Bonds. Payment Bonds. Maintenance Bonds. Subdivision Bonds.
A performance bond for a construction project (also known as a contract bond) effectively guarantees satisfactory completion of a project by a contractor. The bond protects the insured party should a contracted entity fail to meet its obligations as set in out in the contract between the insured and the contractor.
There are three kinds of bonds defined in CIAP Document 102: Guarantee Bond, Payment Bond, and Performance Bond. The Contractor and his Surety furnish these bonds. A Surety is the person, firm, or corporation which issues the bond required of the Contractor.
The major types of surety bonds are contractor license bonds, bid bonds, performance or contract bonds, and payment bonds.
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Surety bonds play a vital role in the construction industry. They guarantee that contractors perform on jobs in compliance with contractual conditions and legal requirements. They protect project owners, other contractors and the public by playing the role of a financial security mechanism.
The exact cost will vary depending on the surety bond amount required by the Florida Department of Highway Safety and Motor Vehicles. Bond amounts up to $6,000 cost just $100. Bond amounts from $6,001 to $50,000 cost $15 for every $1,000 of coverage, starting at $100.
Florida Contractor License Bond Requirements The required amounts for the different Florida contractor license type are the following: Division I license - $20,000. Division II license - $10,000. Division II license after completing a board-approved financial responsibility course - $10,000.
The three main types of construction bonds are bid, performance, and payment.
All general contractors and subcontractors must obtain a contractor license bond from the Construction Industry Licensing Board, which falls under the Florida Department of Business and Professional Regulation.

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