HOUSE AMENDMENT Bill No. HB 485
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	Remove line(s) 8-82, and insert:
16	Section 1. Paragraph (a) of subsection (1) and subsections
17	(3) and (6) of section 255.05, Florida Statutes, are amended,
18	and subsection (4) of said section is reenacted, to read:
19	255.05 Bond of contractor constructing public buildings;
20	form; action by materialmen.--
21	(1)(a) Any person entering into a formal contract with the
22	state or any county, city, or political subdivision thereof, or
23	other public authority, for the construction of a public
24	building, for the prosecution and completion of a public work,
25	or for repairs upon a public building or public work shall be
26	required, before commencing the work or before recommencing the
27	work after a default or abandonment, to execute, deliver to the
28	public owner, and record in the public records of the county
29	where the improvement is located, a payment bond and a
30	performance bond with a surety insurer authorized to do business
31	in this state as surety. A public entity may not require a
32	contractor to secure a surety bond under this section from a
33	specific agent or bonding company. EachThebond must state on
34	its front page: the name, principal business address, and phone
35	number of the contractor, the surety, the owner of the property
36	being improved, and, if different from the owner, the
37	contracting public entity; the contract number assigned by the
38	contracting public entity; and a description of the project
39	sufficient to identify it, such as a legal description or the
40	street address of the property being improved, and a general
41	description of the improvement. The performanceSuchbond shall
42	be conditioned upon the contractor's performance of the
43	construction work in the time and manner prescribed in the
44	contract, and the payment bond shall be conditioned upon the
45	contractorpromptly making payments to all persons defined in s.
46	713.01 who furnish labor, services, or materials for the
47	prosecution of the work provided for in the contract. Any
48	claimant may apply to the governmental entity having charge of
49	the work for copies of the contract and the paymentbond and
50	shall thereupon be furnished with a certified copy of the
51	contract and the paymentbond. The claimant shall have a right
52	of action against the contractor and surety for the amount due
53	him or her, including unpaid finance charges due under the
54	claimant's contract. Such action shall not involve the public
55	authority in any expense. When such work is done for the state
56	and the contract is for $100,000 or less, no payment orand
57	performance bond shall be required. At the discretion of the
58	official or board awarding such contract when such work is done
59	for any county, city, political subdivision, or public
60	authority, any person entering into such a contract which is for
61	$200,000 or less may be exempted from executing the payment and
62	performance bonds required by this sectionbond. When such work
63	is done for the state, the Secretary of the Department of
64	Management Services may delegate to state agencies the authority
65	to exempt any person entering into such a contract amounting to
66	more than $100,000 but less than $200,000 from executing the
67	payment and performance bonds required by this sectionbond. In
68	the event such exemption is granted, the officer or officials
69	shall not be personally liable to persons suffering loss because
70	of granting such exemption. The Department of Management
71	Services shall maintain information on the number of requests by
72	state agencies for delegation of authority to waive the bond
73	requirements by agency and project number and whether any
74	request for delegation was denied and the justification for the
75	denial.
76	(3)(a) The performance bond required in subsection (1)
77	shallmaybe in substantially the following form:
78
79	PUBLIC CONSTRUCTION PERFORMANCEBOND
80
81	Bond No. (enter bond number)
82
83	BY THIS BOND, We, _____(enter name, principal business
84	address, and telephone number of contractor) , as Principal,
85	and _____(enter name, principal business address, and telephone
86	number of surety) , a corporation authorized to do business
87	in Florida as a surety insurer, as Surety, are bound to
88	_____(enter name, principal business address, and telephone
89	number of public owner) , hereinafterhereincalled Owner,
90	in the sum of $_____(enter contract amount as penal sum of bond)
91	, for payment of which the Principal and each individually named
92	surety binds itself and itswe bind ourselves, ourheirs,
93	personal representatives, successors, and assigns, jointly and
94	severally.
95
96	WHEREAS, Principal has entered into a contract with Owner
97	for ...(enter description of project sufficient to identify it,
98	such as a legal description of property, the street address of
99	property, and a general description of the improvement to be
100	constructed)..., which is Owner's contract No. ...(enter
101	contract number)... belonging to ...(enter name, principal
102	business address, and telephone number of owner of property if
103	different from the contracting public entity)...; and
104
105	WHEREAS, the Bond is given to meet the requirements of the
106	contract and Section 255.05, Florida Statutes, and the
107	respective rights and obligations of the Principal, Surety, and
108	Owner shall be controlled by the contract and Section 255.05,
109	Florida Statutes.
110
111	NOW, THEREFORE,THE CONDITION OF THIS BOND is that if
112	Principal:
113	1. Performs the contract dated _____(enter date of
114	contract) , _____,between Principal and Owner for
115	construction of ___the Project__, the contract being made a part
116	of this bond by reference, at the times and in the manner
117	prescribed in the contract; and
118	2. Promptly makes payments to all claimants, as defined in
119	Section 255.05(1), Florida Statutes, supplying Principal with
120	labor, materials, or supplies, used directly or indirectly by
121	Principal in the prosecution of the work provided for in the
122	contract; and
123	2.3. Pays Owner all losses, damages as defined in the
124	contract, expenses, costs, and attorney's fees, including
125	appellate proceedings, that Owner sustains because of a default
126	by Principal under the contract; and
127	3.4.Performs the guarantee of all work and materials
128	furnished under the contract for the time specified in the
129	contract, then this bond is void; otherwise it remains in full
130	force.
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132	NO RIGHT OF ACTION SHALL ACCRUE ON THIS BOND TO, OR FOR THE
133	BENEFIT OR USE OF, ANY PERSON OR CORPORATION OTHER THAN . . .
134	(enter the name of public owner) . . ., THE OWNER, ITS
135	SUCCESSORS, AND ASSIGNS.
136
137	Any changes in or under the contract documents and compliance or
138	noncompliance with any formalities connected with the contract
139	or the changes does not affect Surety's obligation under this
140	bond.
141
142	DATED ON _____, _____(enter date of bond) .
143
144	... (entername of Principal) ...
145	By ... (enter name of its authorized officer)(As Attorney in
146	Fact)...
147	... (enter name of Surety) ...
148
149	By ... (its authorized Attorney-in-Fact)
150	(b) The payment bond required in subsection (1) shall be
151	in substantially the following form:
152
153	PUBLIC CONSTRUCTION PAYMENT BOND
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155	Bond No. (enter bond number)
156
157	BY THIS BOND, We, _____(enter name, principal business
158	address, and telephone number of contractor) , as Principal,
159	and _____(enter name, principal business address, and telephone
160	number of surety) , a corporation authorized to do business
161	in Florida as a surety insurer, as Surety, are bound to
162	_____(enter name, principal business address, and telephone
163	number of public owner) , hereinafter called Owner, in the
164	sum of $_____(enter contract amount as penal sum of bond) ,
165	for payment of which the Principal and each individually named
166	surety binds itself and its heirs, personal representatives,
167	successors, and assigns, jointly and severally.
168
169	WHEREAS, Principal has entered into a contract with Owner
170	for ...(enter description of project sufficient to identify it,
171	such as a legal description of property, the street address of
172	property, and a general description of the improvement to be
173	constructed)..., which is Owner's contract No. ...(enter
174	contract number)... belonging to ...(enter name, principal
175	business address, and telephone number of owner of property if
176	different from the contracting public entity)...; and
177
178	WHEREAS, the Bond is given to meet the requirements of the
179	contract and Section 255.05, Florida Statutes, and the
180	respective rights and obligations of the Principal, Surety,
181	Owner, and any Claimant shall be controlled by Section 255.05,
182	Florida Statutes, including specifically the notice and time
183	limitation provisions of Section 255.05(2), Florida Statutes.
184
185	NOW, THEREFORE, THE CONDITION OF THIS BOND is that if
186	Principal:
187	1. Performs the contract dated _____(enter date of
188	contract) , between Principal and Owner for construction of
189	___the Project__, the contract being made a part of this bond by
190	reference, at the times and in the manner prescribed in the
191	contract; and
192	2. Pays Owner all losses, damages as defined in the
193	contract, expenses, costs, and attorney's fees, including
194	appellate proceedings, that Owner sustains because of a default
195	by Principal under the contract; and
196	3. Promptly makes payments to all claimants, as defined in
197	Section 255.05(1), Florida Statutes, supplying Principal with
198	labor, materials, or supplies, used directly or indirectly by
199	Principal in the prosecution of the work provided for in the
200	contract, then this bond is void; otherwise, it remains in full
201	force, subject, however, to the following conditions:
202	a. No action for labor, materials, or supplies may be
203	instituted against the Principal or the Surety unless the
204	notices required under Section 255.05(2), Florida Statutes, have
205	been given; and
206	b. Any action under this Bond must be instituted in
207	accordance with the notice and time limitation provisions
208	prescribed in Section 255.05(2), Florida Statutes.
209
210	Any changes in or under the contract documents and compliance or
211	noncompliance with any formalities connected with the contract
212	or the changes does not affect Surety's obligation under this
213	bond.
214
215	DATED ON _____, _____(enter date of bond) .
216
217	... (enter name of Principal) ...
218	By ... (enter name of its authorized officer) ...
219	... (enter name of Surety) ...
220
221	By ... (its authorized Attorney-in-Fact)
222	(4) The payment provisions of all bonds furnished for
223	public work contracts described in subsection (1) shall,
224	regardless of form, be construed and deemed statutory bond
225	provisions, subject to all requirements of subsection (2).
226	(6) The notice and time limitation provisions of
227	subsection (2) shall apply to all payment bonds furnished for
228	public building and public work contracts described in
229	subsection (1), and any deviation from such requirements
230	contained in the bond form used by the public owner or furnished
231	by the contractor shall be disregardedAll bonds executed
232	pursuant to this section shall make reference to this section by
233	number and shall contain reference to the notice and time
234	limitation provisions of this section.
235
236	================= T I T L E A M E N D M E N T =================
237	Remove line(s) 3-4, and insert:
238	255.05, F.S.; providing for mandatory forms for public
239	performance construction bonds and payment construction
240	bonds for public work contracts; describing form of said
241	public construction bonds; reenacting s. 255.05(4), F.S.;
242	requiring payment bond provisions to be construed as
243	statutory bonds; providing that deviations from the notice
244	and time limitations in s. 255.05(2), F.S., in bond forms
245	must be disregarded; providing an effective date.