Senate Bill sb0652c2

    Florida Senate - 2005                     CS for CS for SB 652

    By the Committees on Judiciary; Governmental Oversight and
    Productivity; and Senator Sebesta




    590-2253-05

  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:

19  

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 - 2005                     CS for CS for SB 652
    590-2253-05




 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  

17         Any action instituted by a claimant under this bond for

18  payment must be in accordance with the notice and time

19  limitation provisions in Section 255.05(2), Florida Statutes.

20  

21         Any changes in or under the contract documents and

22  compliance or noncompliance with any formalities connected

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

24  obligation under this bond.

25  

26         DATED ON ...., .....

27                                       ...(Name of Principal)...

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

29                                          ...(Name of Surety)...

30  

31  

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    Florida Senate - 2005                     CS for CS for SB 652
    590-2253-05




 1         (4)  The payment bond provisions of all bonds required

 2  by furnished for public work contracts described in subsection

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

 4  statutory payment bonds furnished pursuant to this section and

 5  such bonds shall not under any circumstances be converted into

 6  common law bonds bond provisions, subject to all requirements

 7  of subsection (2).

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

 9  all payment bonds executed pursuant to this section by a

10  surety shall make reference to this section by number and

11  shall contain reference to the notice and time limitation

12  provisions in subsection (2) of this section.

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

14  law.

15  

16          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
17                        CS/Senate Bill 652

18                                 

19  The committee substitute makes the following change to the
    underlying committee substitute.
20  
    --   Clarifies references to "payment bonds."
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CODING: Words stricken are deletions; words underlined are additions.