Florida Construction Bonds and What to Know

If you’re a construction company in the state of Florida, construction bonding will be required so that you can legally operate within the state. Additionally, the right types of bonding will help to protect you in the case of unforeseen events. Here, you’ll learn some important facts about Florida construction bonds so you can take the right steps, make sure you’re in compliance, and always have what you need.Construction bonds are utilized as an assurance that the construction company completes the specified work and lives up to its obligations. It is a requirement for obtaining professional licensure. While it is in some ways similar to insurance, it’s not the same. Rather, it’s a type of surety, or guarantee.The Florida Construction Industry Licensing Board has a requirement of a $100,000 bond in most cases. However, this figure could change and may depend on your specific circumstances, so don’t make any assumptions.Also, keep in mind that your needs for bonding and insurance don’t necessarily end there. For one thing, the specifics for construction companies and contractors of different specialties may all vary from one another.For instance, the Florida Department of Business and Professional Regulation lists dozens of different licensing classifications in these industries alone. Each classification may have its own different requirements, so it’s important that you take the time to learn exactly what you need for yourself and your company.Their official website is available at MyFloridaLicense.com/DBPR/, and they have all of the specific information available to be accessed there.Florida construction bonds may also be utilized in place of credit reports in certain instances. In other words, it shows your financial accountability so that you can obtain your license, or satisfy the needs of certain partners or clients.Finally, keep in mind that there are also bid bonds, which are also known as contract bonds, performance bonds, or performance and payment bonds. As you’re bidding on a project, this type of bond ensures the company sticks to the price they bid, and also successfully completes the project per the original specifications.Builder’s risk, or liability insurance, is another important type of protection for construction companies.It’s always best to work with a professional who has the experience and expertise to not only get you a great deal on your bonding and insurance, but also make sure you’re in full legal compliance, and you’re never caught off guard and never leave anything uncovered.So whether you’re new to the industry or you’re looking to be better prepared and fully informed moving ahead, then get started with a team who can help you find the ideal type of protection and the right Florida construction bonds to match your needs.