Florida Senate - 2006                      COMMITTEE AMENDMENT
    Bill No. SB 1350
                        Barcode 903914
                            CHAMBER ACTION
              Senate                               House
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 1           Comm: FAV             .                    
       03/08/2006 09:24 AM         .                    
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11  The Committee on Transportation (Sebesta) recommended the
12  following amendment:
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14         Senate Amendment (with title amendment) 
15         On page 1, line 9,
16  
17  insert:  
18         Section 1.  Paragraph (a) of subsection (3) of section
19  337.11, Florida Statutes, is amended to read:
20         337.11  Contracting authority of department; bids;
21  emergency repairs, supplemental agreements, and change orders;
22  combined design and construction contracts; progress payments;
23  records; requirements of vehicle registration.--
24         (3)(a)  On all construction contracts of $500,000
25  $250,000 or less, the department shall advertise for bids in a
26  newspaper having general circulation in the county where the
27  proposed work is located.  Publication shall be at least once
28  a week for no less than 2 consecutive weeks, and the first
29  publication shall be no less than 14 days prior to the date on
30  which bids are to be received.
31         Section 2.  Subsection (1) of section 337.14, Florida
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    9:20 AM   03/03/06                             s1350c-tr16-tl3

Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 1350 Barcode 903914 1 Statutes, is amended to read: 2 337.14 Application for qualification; certificate of 3 qualification; restrictions; request for hearing.-- 4 (1) Any person desiring to bid for the performance of 5 any construction contract in excess of $250,000 which the 6 department proposes to let must first be certified by the 7 department as qualified pursuant to this section and rules of 8 the department. The rules of the department shall address the 9 qualification of persons to bid on construction contracts in 10 excess of $250,000 and shall include requirements with respect 11 to the equipment, past record, experience, financial 12 resources, and organizational personnel of the applicant 13 necessary to perform the specific class of work for which the 14 person seeks certification. The department is authorized to 15 limit the dollar amount of any contract upon which a person is 16 qualified to bid or the aggregate total dollar volume of 17 contracts such person is allowed to have under contract at any 18 one time. Each applicant seeking qualification to bid on 19 construction contracts in excess of $250,000 shall furnish the 20 department a statement under oath, on such forms as the 21 department may prescribe, setting forth detailed information 22 as required on the application. Each application for 23 certification shall be accompanied by the latest annual 24 financial statement of the applicant completed within the last 25 12 months. If the annual financial statement shows the 26 financial condition of the applicant more than 4 months prior 27 to the date on which the application is received by the 28 department, then an interim financial statement must also be 29 submitted. The interim financial statement must cover the 30 period from the end date of the annual statement and must show 31 the financial condition of the applicant no more than 4 months 2 9:20 AM 03/03/06 s1350c-tr16-tl3
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 1350 Barcode 903914 1 prior to the date on which the application is received by the 2 department. Each required annual or interim financial 3 statement must be audited and accompanied by the opinion of a 4 certified public accountant or a public accountant approved by 5 the department. The information required by this subsection 6 is confidential and exempt from the provisions of s. 7 119.07(1). The department shall act upon the application for 8 qualification within 30 days after the department determines 9 that the application is complete. The department may waive the 10 requirements of this subsection for projects having a contract 11 price of $500,000 or less if the department determines that 12 the project is of a noncritical nature and noncompliance with 13 the subsection will not endanger public health, safety, or 14 property. 15 Section 3. Paragraph (a) of subsection (1) of section 16 337.18, Florida Statutes, is amended to read: 17 337.18 Surety bonds for construction or maintenance 18 contracts; requirement with respect to contract award; bond 19 requirements; defaults; damage assessments.-- 20 (1)(a) A surety bond shall be required of the 21 successful bidder in an amount equal to the awarded contract 22 price. However, the department may choose, in its discretion 23 and applicable only to multiyear maintenance contracts, to 24 allow for incremental annual contract bonds that cumulatively 25 total the full, awarded multiyear contract price. For a 26 project for which the contract price is $250,000 $150,000 or 27 less, the department may waive the requirement for all or a 28 portion of a surety bond if it determines the project is of a 29 noncritical nature and nonperformance will not endanger public 30 health, safety, or property. If the secretary or his designee 31 determines that it is in the best interests of the department 3 9:20 AM 03/03/06 s1350c-tr16-tl3
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 1350 Barcode 903914 1 to do so and that a reduced bonding requirement for a project 2 will not endanger public health, safety, or property, the 3 department may waive the requirement of a surety bond in an 4 amount equal to the awarded contract price for a project 5 having a contract price of $250 million or more, and, in its 6 place, may set a surety bond amount that is a portion of the 7 total contract price and provide an alternate means of 8 security for the balance of the contract amount which is not 9 covered by the surety bond or provide for incremental surety 10 bonding and provide an alternate means of security for the 11 balance of the contract amount which is not covered by the 12 surety bond. Such alternative means of security may include 13 letters of credit, United States bonds and notes, parent 14 company guaranties, and cash collateral. The department may 15 require alternate means of security if a surety bond is 16 waived. The surety on such bond shall be a surety company 17 authorized to do business in the state. All bonds shall be 18 payable to the department and conditioned for the prompt, 19 faithful, and efficient performance of the contract according 20 to plans and specifications and within the time period 21 specified, and for the prompt payment of all persons defined 22 in s. 713.01 furnishing labor, material, equipment, and 23 supplies for work provided in the contract; however, whenever 24 an improvement, demolition, or removal contract price is 25 $25,000 or less, the security may, in the discretion of the 26 bidder, be in the form of a cashier's check, bank money order 27 of any state or national bank, certified check, or postal 28 money order. The department shall adopt rules to implement 29 this subsection. Such rules shall include provisions under 30 which the department shall refuse to accept bonds on contracts 31 when a surety wrongfully fails or refuses to settle or provide 4 9:20 AM 03/03/06 s1350c-tr16-tl3
Florida Senate - 2006 COMMITTEE AMENDMENT Bill No. SB 1350 Barcode 903914 1 a defense for claims or actions arising under a contract for 2 which the surety previously furnished a bond. 3 4 (Redesignate subsequent sections.) 5 6 7 ================ T I T L E A M E N D M E N T =============== 8 And the title is amended as follows: 9 On page 1, line 3, after the first semicolon, 10 11 insert: 12 amending s. 337.11, F.S.; amending notification 13 requirements for construction contracts; 14 amending s. 337.14, F.S.; providing exemptions 15 from prequalification requirements for certain 16 projects; amending s. 337.18, F.S.; revising 17 requirements for surety bonds for certain 18 construction projects; 19 20 21 22 23 24 25 26 27 28 29 30 31 5 9:20 AM 03/03/06 s1350c-tr16-tl3