Personalized Professionalism

Bonds in Construction Liens

The purpose of the Statutory Payment Bond furnished under the Florida Construction Lien Law is to exempt the owner of the property from liens of all lienors other than the contractor. The Statutory Payment Bond is a substitute for the realty, and the furnishing of such bond by the contractor is a complete defense to a construction lien action by non privity lienors. The failure of the owner to attach a copy of the Bond to the Notice of Commencement when the Notice is recorded negates the exemption provided in §713.02(6), Fla. Stat.

Section 255.05(1), Fla. Stat., requires that any person entering into a formal contract with the state or other public authority or private entity for the construction of a public building must first execute a Payment and Performance Bond with a surety authorized to do business in the State of Florida. However, on contracts involving $100,000 or less on state jobs, and $200,000 or less on county, city, political subdivision, or public authority jobs, the governing authority may, at its discretion, excuse the Bond.