Senate Bill sb2376c1

    Florida Senate - 2007                           CS for SB 2376

    By the Committee on Regulated Industries; and Senator Saunders





    580-2458-07

  1                      A bill to be entitled

  2         An act relating to public project construction

  3         bonds; amending s. 255.05, F.S.; providing that

  4         the amount of a bond shall equal the contract

  5         price except under certain conditions;

  6         providing that a bond may not be conditioned on

  7         the performance of design or nonconstruction

  8         services if such services are not included in

  9         the bond amount; providing an effective date.

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

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13         Section 1.  Paragraph (c) is added to subsection (1) of

14  section 255.05, Florida Statutes, to read:

15         255.05  Bond of contractor constructing public

16  buildings; form; action by materialmen.--

17         (1)

18         (c)1.  The amount of the bond shall equal the contract

19  price, except that for a contract in excess of $250 million,

20  if the state, county, municipality, political subdivision, or

21  other public entity finds that a bond in the amount of the

22  contract price is not reasonably available, the public owner

23  shall set the amount of the bond at the largest amount

24  reasonably available, but not less than $250 million.

25         2.  For a construction-management or design-build

26  contracts, if the public owner does not include in the bond

27  amount the cost of design or other nonconstruction services,

28  the bond may not be conditioned on performance of such

29  services or payment to persons furnishing such services.

30  Notwithstanding paragraph (a), such a bond may exclude persons

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






    Florida Senate - 2007                           CS for SB 2376
    580-2458-07




 1  furnishing such services from the classes of persons protected

 2  by the bond.

 3         Section 2.  This act shall take effect July 1, 2007.

 4  

 5          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 6                         Senate Bill 2376

 7                                 

 8  The committee substitute (CS) restores the requirement that
    the payment and performance bond must be with a surety insurer
 9  authorized to do business in this state as a surety.

10  The CS does not specify requirements for a performance bond.

11  The CS does not provide requirements related to contracts for
    construction-manager-at-risk construction services and
12  design-building construction services, including the amount of
    the bond and the services that it may not include.
13  
    The CS does not provide that the amount of the payment and
14  performance bonds may be reduced by the amount of such bonds
    that are provided by the subcontractors.  It also does not
15  require that the performance and payment bond name both the
    contractor and the public entity as obligees.
16  
    The CS permits a public owner to set the amount of the payment
17  and performance bond at the largest amount reasonably
    available if the contract exceeds $250 million and a bond in
18  the amount of the contract price is not reasonably available.

19  The CS provides that a bond for a construction-management or
    design-build contract, if the public owner does not include
20  the cost of the amount may not be conditioned on performance
    of such services or payment to persons furnishing such
21  services and must exclude persons furnishing such services
    from the classes of persons protected by the bond.
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CODING: Words stricken are deletions; words underlined are additions.