HB 1489

1	A bill to be entitled
2	An act relating to public project construction bonds;
3	amending s. 255.05, F.S.; specifying amounts, criteria,
4	and requirements for payment and performance bonds for
5	public construction projects; providing an effective date.
6
7	Be It Enacted by the Legislature of the State of Florida:
8
9	Section 1.  Paragraph (a) of subsection (1) of section
10	255.05, Florida Statutes, is amended to read:
11	255.05  Bond of contractor constructing public buildings;
12	form; action by materialmen.--
13	(1)(a)1.  Any person entering into a formal contract with
14	the state or any county, city, or political subdivision thereof,
15	or other public authority, for the construction of a public
16	building, for the prosecution and completion of a public work,
17	or for repairs upon a public building or public work shall be
18	required, before commencing the work or before recommencing the
19	work after a default or abandonment, to execute, deliver to the
20	public owner, and record in the public records of the county
21	where the improvement is located, the following bonds:
22	a.  A payment bond in an amount equal to the full contract
23	amount solely for the protection of claimants supplying labor or
24	materials to the contractor or the contractor's subcontractors
25	in the execution of the construction and not for the protection
26	of persons providing any design services, preconstruction
27	services, finance services, maintenance services, operations
28	services, or other related services provided for the contract;
29	however, for construction manager at-risk construction services
30	and design-build construction services, the amount of the
31	payment bond shall be the price of construction and shall not
32	include the cost of any design services, preconstruction
33	services, finance services, maintenance services, operations
34	services, or any other related services included in the
35	contract.
36	b.  A and performance bond in an amount equal to the full
37	contract amount conditioned on the faithful performance of the
38	contract in accordance with plans, specifications, and
39	conditions of the contract; however, for construction manager
40	at-risk construction services and design-build construction
41	services, the amount of the performance bond shall be the price
42	of construction and shall not include the cost of any design
43	services, preconstruction services, finance services,
44	maintenance services, operations services, or any other related
45	services included in the contract with a surety insurer
46	authorized to do business in this state as surety.
47
48	To the extent the contractor, pursuant to written agreements
49	with its subcontractors, requires the subcontractors to provide
50	performance and payment bonds that name both the contractor and
51	the public entity as obligees, the amount of the payment and
52	performance bonds required to be provided by the contractor
53	pursuant to this paragraph may be reduced by the amount of such
54	bond or bonds that are provided by the subcontractors.
55	2.  A public entity may not require a contractor to secure
56	a surety bond under this section from a specific agent or
57	bonding company. The bond must state on its front page: the
58	name, principal business address, and phone number of the
59	contractor, the surety, the owner of the property being
60	improved, and, if different from the owner, the contracting
61	public entity; the contract number assigned by the contracting
62	public entity; and a description of the project sufficient to
63	identify it, such as a legal description or the street address
64	of the property being improved, and a general description of the
65	improvement. Such bond shall be conditioned upon the
66	contractor's performance of the construction work in the time
67	and manner prescribed in the contract and promptly making
68	payments to all persons defined in s. 713.01 who furnish labor,
69	services, or materials for the prosecution of the work provided
70	for in the contract. Any claimant may apply to the governmental
71	entity having charge of the work for copies of the contract and
72	bond and shall thereupon be furnished with a certified copy of
73	the contract and bond. The claimant shall have a right of action
74	against the contractor and surety for the amount due him or her,
75	including unpaid finance charges due under the claimant's
76	contract. Such action shall not involve the public authority in
77	any expense. When such work is done for the state and the
78	contract is for $100,000 or less, no payment and performance
79	bonds bond shall be required. At the discretion of the official
80	or board awarding such contract when such work is done for any
81	county, city, political subdivision, or public authority, any
82	person entering into such a contract which is for $200,000 or
83	less may be exempted from executing the payment and performance
84	bonds bond. When such work is done for the state, the Secretary
85	of the Department of Management Services may delegate to state
86	agencies the authority to exempt any person entering into such a
87	contract amounting to more than $100,000 but less than $200,000
88	from executing the payment and performance bonds bond. In the
89	event such exemption is granted, the officer or officials shall
90	not be personally liable to persons suffering loss because of
91	granting such exemption. The Department of Management Services
92	shall maintain information on the number of requests by state
93	agencies for delegation of authority to waive the bond
94	requirements by agency and project number and whether any
95	request for delegation was denied and the justification for the
96	denial. Any provision in a payment bond furnished for public
97	work contracts as provided by this subsection which restricts
98	the classes of persons as defined in s. 713.01 protected by the
99	bond or the venue of any proceeding relating to such bond is
100	unenforceable.
101	Section 2.  This act shall take effect July 1, 2007.

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