HOUSE AMENDMENT Bill No. CS/SB 1986
1	CHAMBER ACTION
2	Senate House
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12	Representative Joyner offered the following:
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14	Amendment (with title amendment)
15	On page 1, line 9, through page 3, line 26,
16	remove: all of said lines
17
18	and insert:
19	Section 1. Paragraph (a) of subsection (1) and subsections
20	(3) and (6) of section 255.05, Florida Statutes, are amended,
21	and subsection (4) of said section is reenacted, to read:
22	255.05 Bond of contractor constructing public buildings;
23	form; action by materialmen.--
24	(1)(a) Any person entering into a formal contract with the
25	state or any county, city, or political subdivision thereof, or
26	other public authority, for the construction of a public
27	building, for the prosecution and completion of a public work,
28	or for repairs upon a public building or public work shall be
29	required, before commencing the work or before recommencing the
30	work after a default or abandonment, to execute, deliver to the
31	public owner, and record in the public records of the county
32	where the improvement is located, a payment bond and a
33	performance bond with a surety insurer authorized to do business
34	in this state as surety. A public entity may not require a
35	contractor to secure a surety bond under this section from a
36	specific agent or bonding company. EachThebond must state on
37	its front page: the name, principal business address, and phone
38	number of the contractor, the surety, the owner of the property
39	being improved, and, if different from the owner, the
40	contracting public entity; the contract number assigned by the
41	contracting public entity; and a description of the project
42	sufficient to identify it, such as a legal description or the
43	street address of the property being improved, and a general
44	description of the improvement. The performanceSuchbond shall
45	be conditioned upon the contractor's performance of the
46	construction work in the time and manner prescribed in the
47	contract, and the payment bond shall be conditioned upon the
48	contractorpromptly making payments to all persons defined in s.
49	713.01 who furnish labor, services, or materials for the
50	prosecution of the work provided for in the contract. Any
51	claimant may apply to the governmental entity having charge of
52	the work for copies of the contract and the paymentbond and
53	shall thereupon be furnished with a certified copy of the
54	contract and the paymentbond. The claimant shall have a right
55	of action against the contractor and surety for the amount due
56	him or her, including unpaid finance charges due under the
57	claimant's contract. Such action shall not involve the public
58	authority in any expense. When such work is done for the state
59	and the contract is for $100,000 or less, no payment orand
60	performance bond shall be required. At the discretion of the
61	official or board awarding such contract when such work is done
62	for any county, city, political subdivision, or public
63	authority, any person entering into such a contract which is for
64	$200,000 or less may be exempted from executing the payment and
65	performance bonds required by this sectionbond. When such work
66	is done for the state, the Secretary of the Department of
67	Management Services may delegate to state agencies the authority
68	to exempt any person entering into such a contract amounting to
69	more than $100,000 but less than $200,000 from executing the
70	payment and performance bonds required by this sectionbond. In
71	the event such exemption is granted, the officer or officials
72	shall not be personally liable to persons suffering loss because
73	of granting such exemption. The Department of Management
74	Services shall maintain information on the number of requests by
75	state agencies for delegation of authority to waive the bond
76	requirements by agency and project number and whether any
77	request for delegation was denied and the justification for the
78	denial.
79	(3)(a) The performance bond required in subsection (1)
80	shallmaybe in substantially the following form:
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82	PUBLIC CONSTRUCTION PERFORMANCEBOND
83
84	Bond No. (enter bond number)
85
86	BY THIS BOND, We, _____(enter name, principal business
87	address, and telephone number of contractor) , as Principal,
88	and _____(enter name, principal business address, and telephone
89	number of surety) , a corporation authorized to do business
90	in Florida as a surety insurer, as Surety, are bound to
91	_____(enter name, principal business address, and telephone
92	number of public owner) , hereinafterhereincalled Owner,
93	in the sum of $_____(enter contract amount as penal sum of bond)
94	, for payment of which the Principal and each individually named
95	surety binds itself and itswe bind ourselves, ourheirs,
96	personal representatives, successors, and assigns, jointly and
97	severally.
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99	WHEREAS, Principal has entered into a contract with Owner
100	for ...(enter description of project sufficient to identify it,
101	such as a legal description of property, the street address of
102	property, and a general description of the improvement to be
103	constructed)..., which is Owner's contract No. ...(enter
104	contract number)... belonging to ...(enter name, principal
105	business address, and telephone number of owner of property if
106	different from the contracting public entity)...; and
107
108	WHEREAS, the Bond is given to meet the requirements of the
109	contract and Section 255.05, Florida Statutes, and the
110	respective rights and obligations of the Principal, Surety, and
111	Owner shall be controlled by the contract and Section 255.05,
112	Florida Statutes.
113
114	NOW, THEREFORE,THE CONDITION OF THIS BOND is that if
115	Principal:
116	1. Performs the contract dated _____(enter date of
117	contract) , _____,between Principal and Owner for
118	construction of ___the Project__, the contract being made a part
119	of this bond by reference, at the times and in the manner
120	prescribed in the contract; and
121	2. Promptly makes payments to all claimants, as defined in
122	Section 255.05(1), Florida Statutes, supplying Principal with
123	labor, materials, or supplies, used directly or indirectly by
124	Principal in the prosecution of the work provided for in the
125	contract; and
126	2.3. Pays Owner all losses, damages as defined in the
127	contract, expenses, costs, and attorney's fees, including
128	appellate proceedings, that Owner sustains because of a default
129	by Principal under the contract; and
130	3.4.Performs the guarantee of all work and materials
131	furnished under the contract for the time specified in the
132	contract, then this bond is void; otherwise it remains in full
133	force.
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135	NO RIGHT OF ACTION SHALL ACCRUE ON THIS BOND TO, OR FOR THE
136	BENEFIT OR USE OF, ANY PERSON OR CORPORATION OTHER THAN . . .
137	(enter the name of public owner) . . ., THE OWNER, ITS
138	SUCCESSORS, AND ASSIGNS.
139
140	Any changes in or under the contract documents and compliance or
141	noncompliance with any formalities connected with the contract
142	or the changes does not affect Surety's obligation under this
143	bond.
144
145	DATED ON _____, _____(enter date of bond) .
146
147	... (entername of Principal) ...
148	By ... (enter name of its authorized officer)(As Attorney in
149	Fact)...
150	... (enter name of Surety) ...
151
152	By ... (its authorized Attorney-in-Fact)
153	(b) The payment bond required in subsection (1) shall be
154	in substantially the following form:
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156	PUBLIC CONSTRUCTION PAYMENT BOND
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158	Bond No. (enter bond number)
159
160	BY THIS BOND, We, _____(enter name, principal business
161	address, and telephone number of contractor) , as Principal,
162	and _____(enter name, principal business address, and telephone
163	number of surety) , a corporation authorized to do business
164	in Florida as a surety insurer, as Surety, are bound to
165	_____(enter name, principal business address, and telephone
166	number of public owner) , hereinafter called Owner, in the
167	sum of $_____(enter contract amount as penal sum of bond) ,
168	for payment of which the Principal and each individually named
169	surety binds itself and its heirs, personal representatives,
170	successors, and assigns, jointly and severally.
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172	WHEREAS, Principal has entered into a contract with Owner
173	for ...(enter description of project sufficient to identify it,
174	such as a legal description of property, the street address of
175	property, and a general description of the improvement to be
176	constructed)..., which is Owner's contract No. ...(enter
177	contract number)... belonging to ...(enter name, principal
178	business address, and telephone number of owner of property if
179	different from the contracting public entity)...; and
180
181	WHEREAS, the Bond is given to meet the requirements of the
182	contract and Section 255.05, Florida Statutes, and the
183	respective rights and obligations of the Principal, Surety,
184	Owner, and any Claimant shall be controlled by Section 255.05,
185	Florida Statutes, including specifically the notice and time
186	limitation provisions of Section 255.05(2), Florida Statutes.
187
188	NOW, THEREFORE, THE CONDITION OF THIS BOND is that if
189	Principal:
190	1. Performs the contract dated _____(enter date of
191	contract) , between Principal and Owner for construction of
192	___the Project__, the contract being made a part of this bond by
193	reference, at the times and in the manner prescribed in the
194	contract; and
195	2. Pays Owner all losses, damages as defined in the
196	contract, expenses, costs, and attorney's fees, including
197	appellate proceedings, that Owner sustains because of a default
198	by Principal under the contract; and
199	3. Promptly makes payments to all claimants, as defined in
200	Section 255.05(1), Florida Statutes, supplying Principal with
201	labor, materials, or supplies, used directly or indirectly by
202	Principal in the prosecution of the work provided for in the
203	contract, then this bond is void; otherwise, it remains in full
204	force, subject, however, to the following conditions:
205	a. No action for labor, materials, or supplies may be
206	instituted against the Principal or the Surety unless the
207	notices required under Section 255.05(2), Florida Statutes, have
208	been given; and
209	b. Any action under this Bond must be instituted in
210	accordance with the notice and time limitation provisions
211	prescribed in Section 255.05(2), Florida Statutes.
212
213	Any changes in or under the contract documents and compliance or
214	noncompliance with any formalities connected with the contract
215	or the changes does not affect Surety's obligation under this
216	bond.
217
218	DATED ON _____, _____(enter date of bond) .
219
220	... (enter name of Principal) ...
221	By ... (enter name of its authorized officer) ...
222	... (enter name of Surety) ...
223
224	By ... (its authorized Attorney-in-Fact)
225	(4) The payment provisions of all bonds furnished for
226	public work contracts described in subsection (1) shall,
227	regardless of form, be construed and deemed statutory bond
228	provisions, subject to all requirements of subsection (2).
229	(6) The notice and time limitation provisions of
230	subsection (2) shall apply to all payment bonds furnished for
231	public building and public work contracts described in
232	subsection (1), and any deviation from such requirements
233	contained in the bond form used by the public owner or furnished
234	by the contractor shall be disregardedAll bonds executed
235	pursuant to this section shall make reference to this section by
236	number and shall contain reference to the notice and time
237	limitation provisions of this section.
238
239	================= T I T L E A M E N D M E N T =================
240	On page 1, line(s) 3-5,
241	remove: all of said lines
242
243	and insert: amending s. 255.05, F.S.; providing for mandatory
244	forms for public performance construction bonds and payment
245	construction bonds for public work contracts; describing form of
246	said public construction bonds; reenacting s. 255.05(4), F.S.;
247	requiring payment bond provisions to be construed as statutory
248	bonds; providing that deviations from the notice and time
249	limitations in s. 255.05(2), F.S., in bond forms must be
250	disregarded; providing an effective date.