Senate Bill sb1600c1

    Florida Senate - 2004                           CS for SB 1600

    By the Committee on Governmental Oversight and Productivity;
    and Senator Sebesta




    302-2224-04

  1                      A bill to be entitled

  2         An act relating to public construction bonds;

  3         amending s. 255.05, F.S.; revising requirements

  4         for the form used for public construction

  5         bonds; requiring payment provisions of public

  6         construction bonds to be construed as statutory

  7         bonds; requiring payment bond forms to

  8         reference notice and time limitation

  9         provisions; providing an effective date.

10  

11  Be It Enacted by the Legislature of the State of Florida:

12  

13         Section 1.  Subsections (3), (4), and (6) of section

14  255.05, Florida Statutes, are amended to read:

15         255.05  Bond of contractor constructing public

16  buildings; form; action by materialmen.--

17         (3)  The bond required in subsection (1) may be in

18  substantially the following form:

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20                     PUBLIC CONSTRUCTION BOND

21  

22                                    Bond No. (enter bond number)

23  

24         BY THIS BOND, We ...., as Principal and ...., a

25  corporation, as Surety, are bound to ...., herein called

26  Owner, in the sum of $...., for payment of which we bind

27  ourselves, our heirs, personal representatives, successors,

28  and assigns, jointly and severally.

29         THE CONDITION OF THIS BOND is that if Principal:

30         1.  Performs the contract dated ...., ...., between

31  Principal and Owner for construction of ...., the contract

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                           CS for SB 1600
    302-2224-04




 1  being made a part of this bond by reference, at the times and

 2  in the manner prescribed in the contract; and

 3         2.  Promptly makes payments to all claimants, as

 4  defined in Section 255.05(1), Florida Statutes, supplying

 5  Principal with labor, materials, or supplies, used directly or

 6  indirectly by Principal in the prosecution of the work

 7  provided for in the contract; and

 8         3.  Pays Owner all losses, damages, expenses, costs,

 9  and attorney's fees, including appellate proceedings, that

10  Owner sustains because of a default by Principal under the

11  contract; and

12         4.  Performs the guarantee of all work and materials

13  furnished under the contract for the time specified in the

14  contract, then this bond is void; otherwise it remains in full

15  force.

16         Any action instituted by a claimant under this bond for

17  payment must be in accordance with the notice and time

18  limitation provisions in subsection (2).

19         Any changes in or under the contract documents and

20  compliance or noncompliance with any formalities connected

21  with the contract or the changes does not affect Surety's

22  obligation under this bond.

23  

24         DATED ON ...., .....

25                                       ...(Name of Principal)...

26                                  By ...(As Attorney in Fact)...

27                                          ...(Name of Surety)...

28  

29         (4)  The payment provisions of all bonds required by

30  furnished for public work contracts described in subsection

31  (1) shall, regardless of form, be construed and deemed

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                           CS for SB 1600
    302-2224-04




 1  statutory bonds furnished pursuant to this section and such

 2  bonds shall not under any circumstances be converted into

 3  common law bonds bond provisions, subject to all requirements

 4  of subsection (2).

 5         (6)  All payment bond forms used by a public owner and

 6  all payment bonds executed pursuant to this section by a

 7  surety shall make reference to this section by number and

 8  shall contain reference to the notice and time limitation

 9  provisions in subsection (2) of this section.

10         Section 2.  This act shall take effect upon becoming a

11  law.

12  

13          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
14                         Senate Bill 1600

15                                 

16  Removes bill's requirement that public construction form is
    mandatory. Adds bond number and language regarding notice and
17  time limitations to permissive public construction bond form.
    Provides that all public construction bonds are to be
18  construed as statutory bonds.

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CODING: Words stricken are deletions; words underlined are additions.