| 1 | A bill to be entitled |
| 2 | An act relating to public construction bonds; amending s. |
| 3 | 255.05, F.S.; revising the form for a public construction |
| 4 | bond; requiring all public construction bonds to be |
| 5 | construed as statutory bonds; prohibiting conversion to |
| 6 | common law bonds; limiting certain reference requirements |
| 7 | to payment bond forms used by public owners and bonds |
| 8 | executed by a surety; providing an effective date. |
| 9 |
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| 10 | Be It Enacted by the Legislature of the State of Florida: |
| 11 |
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| 12 | Section 1. Subsections (3), (4), and (6) of section |
| 13 | 255.05, Florida Statutes, are amended to read: |
| 14 | 255.05 Bond of contractor constructing public buildings; |
| 15 | form; action by materialmen.-- |
| 16 | (3) The bond required in subsection (1) may be in |
| 17 | substantially the following form: |
| 18 |
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| 19 | PUBLIC CONSTRUCTION BOND |
| 20 |
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| 21 | Bond No. (enter bond number) |
| 22 |
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| 23 | BY THIS BOND, We _____, as Principal and _____, a |
| 24 | corporation, as Surety, are bound to _____, herein called Owner, |
| 25 | in the sum of $_____, for payment of which we bind ourselves, |
| 26 | our heirs, personal representatives, successors, and assigns, |
| 27 | jointly and severally. |
| 28 | THE CONDITION OF THIS BOND is that if Principal: |
| 29 | 1. Performs the contract dated _____, _____, between |
| 30 | Principal and Owner for construction of _____, the contract |
| 31 | being made a part of this bond by reference, at the times and in |
| 32 | the manner prescribed in the contract; and |
| 33 | 2. Promptly makes payments to all claimants, as defined in |
| 34 | Section 255.05(1), Florida Statutes, supplying Principal with |
| 35 | labor, materials, or supplies, used directly or indirectly by |
| 36 | Principal in the prosecution of the work provided for in the |
| 37 | contract; and |
| 38 | 3. Pays Owner all losses, damages, expenses, costs, and |
| 39 | attorney's fees, including appellate proceedings, that Owner |
| 40 | sustains because of a default by Principal under the contract; |
| 41 | and |
| 42 | 4. Performs the guarantee of all work and materials |
| 43 | furnished under the contract for the time specified in the |
| 44 | contract, then this bond is void; otherwise it remains in full |
| 45 | force. |
| 46 | Any action instituted by a claimant under this bond for |
| 47 | payment must be in accordance with the notice and time |
| 48 | limitation provisions in Section 255.05(2), Florida Statutes. |
| 49 | Any changes in or under the contract documents and |
| 50 | compliance or noncompliance with any formalities connected with |
| 51 | the contract or the changes does not affect Surety's obligation |
| 52 | under this bond. |
| 53 |
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| 54 | DATED ON _____, _____. |
| 55 |
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| 56 | (Name of Principal) |
| 57 | By (As Attorney in Fact) |
| 58 | (Name of Surety) |
| 59 |
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| 60 | (4) The payment provisions of all bonds required by |
| 61 | furnished for public work contracts described in subsection (1) |
| 62 | shall, regardless of form, be construed and deemed statutory |
| 63 | bonds furnished pursuant to this section and such bonds shall |
| 64 | not under any circumstances be converted into common law bonds |
| 65 | bond provisions, subject to all requirements of subsection (2). |
| 66 | (6) All payment bond forms used by a public owner and all |
| 67 | payment bonds executed pursuant to this section by a surety |
| 68 | shall make reference to this section by number and shall contain |
| 69 | reference to the notice and time limitation provisions of |
| 70 | subsection (2) this section. |
| 71 | Section 2. This act shall take effect upon becoming a law. |