Quick Facts:

  • Regulating Agency: Florida Department of Business and Professional Regulation (DBPR) – Construction Industry Licensing Board
  • Required Bond Amount: $5,000 – $100,000 (depending on license type and circumstances)
  • Cost Range: $100 – $1,000 annually (depending on credit)
  • Required For: State-licensed contractors with credit scores below 660, companies with non-owner qualifiers, and locally licensed contractors

What Is a Florida Contractor License Bond?

A Florida contractor license bond is a type of surety bond that serves as a financial guarantee that contractors will comply with state and local licensing laws, building codes, and fulfill their obligations to clients. Unlike insurance that protects the contractor, these bonds protect consumers and regulatory agencies if a contractor fails to meet their legal obligations or causes financial harm through violations.

Who Regulates Florida Construction Contractor Licensing?

  • The Florida Department of Business and Professional Regulation (DBPR) through its Construction Industry Licensing Board oversees state contractor licensing
  • Local contractor licensing is managed by individual counties and municipalities through their own licensing boards and building departments
  • Official DBPR Website

What Bond Amount Is Required in Florida?

  • State Level (Credit-Based Construction License Bond):
    • Division I Contractors (General, Building, Residential): $20,000 (or $10,000 with approved financial responsibility course)
    • Division II Contractors (Specialty Trades like HVAC, Plumbing, Electrical): $10,000 (or $5,000 with approved financial responsibility course)
  • Financially Responsible Officer (FRO) Bond: $100,000 (required when a qualifying agent does not own the company)
  • Local Level (County/City License Bonds): Most jurisdictions require $5,000, with a few exceptions (e.g., Cape Coral requires $25,000)

How Much Does a Contractor Bond Cost in Florida?

  • State-Level Bonds:
    • Construction License Bond (credit-based): ~$100-$600 annually (1-3% of bond amount for good credit, up to 10% for poor credit)
    • FRO Bond: ~$750-$1,000 annually (typically 0.75-1% of the $100,000 bond amount)
  • Local Bonds: About $100 per year for the standard $5,000 bond (flat rate in most cases)
  • Factors affecting cost:
    • Personal credit score (typically the most important factor)
    • Financial history (liens, judgments, bankruptcies)
    • Industry experience and business stability
    • Size of the bond amount

Who Needs a Contractor License Bond in Florida?

  • State Level:
    • Any contractor applying for a state license with a personal credit score below 660
    • Construction businesses where the qualifying agent is not an owner (requires FRO bond)
  • Local Level:
    • Contractors obtaining local licenses or certificates of competency in counties and cities
    • Specifically applies to registered (not state-certified) contractors working in:
      • Miami-Dade County
      • Broward County
      • Hillsborough County (Tampa)
      • Orange County (Orlando)
      • Duval County (Jacksonville)
      • And many other Florida municipalities

What Other Contractor Bonds Are Required in Florida?

  • Performance Bonds: Often required for public construction projects to guarantee completion
  • Payment Bonds: Ensure subcontractors and suppliers are paid on projects
  • Permit Bonds: Some municipalities require these for specific permits
  • Note: Florida contractors are also required to carry various insurance types, including:
    • Workers’ Compensation Insurance
    • General Liability Insurance
    • Commercial Auto Insurance

How Does ContractorNerd’s Application Process Work?

  1. Select your bond type based on your license and requirement
  2. Complete a simple application (online or through an agent)
  3. Receive an instant quote based on your credit and qualifications
  4. Pay the premium (credit card or electronic payment)
  5. Get your bond emailed immediately with hard copy to follow
  6. File the bond with the appropriate licensing authority

How Quickly Can I Purchase a Bond?

  • Most local $5,000 bonds can be issued instantly online
  • State license bonds typically require a soft credit check but can be issued same-day
  • FRO bonds may require slightly more underwriting but are usually available within 1-2 business days
  • Our online system provides instant quotes 24/7, and most bonds can be purchased immediately

Who Files the Bond With the FL Once It Is Purchased?

  • State bonds: Must be filed with the Florida Construction Industry Licensing Board through DBPR
  • Local bonds: Filed with the respective county or city contractor licensing department
  • Our team can provide filing instructions, though the contractor is typically responsible for ensuring proper filing
  • You’ll need to maintain a copy of the bond for your records and note the expiration date for renewal

How Are Claims Handled on a Florida Contractor Bond?

  • A claim may be filed by a consumer, government agency, or licensing board if a contractor:
    • Violates licensing laws or building codes
    • Fails to complete work as contracted
    • Does not pay required fees or fines
    • Causes financial harm through negligence or fraud
  • The surety company investigates the claim to determine its validity
  • If the claim is valid, the surety pays the claimant up to the bond amount
  • The contractor must then reimburse the surety company for any claims paid

Frequently Asked Questions (FAQ)

Can I get a contractor bond with bad credit? Yes, most contractors can obtain the required bonds regardless of credit score. Those with poor credit will pay higher premiums, but specialty programs exist to accommodate all credit types. For the $5,000 local bonds, many sureties offer flat rates regardless of credit.

What happens if I don’t have a required bond? Operating without a required bond can result in license suspension, fines, or inability to obtain permits. Your license application may be denied or your existing license could be placed on inactive status until the bond requirement is met.

How do bond renewals work? Bonds typically follow your license renewal cycle. State license bonds renew every two years (August 31 of even or odd years depending on license type), while local bonds are often annual. You’ll receive a renewal notice before expiration, and the process is usually a simple premium payment.

What’s the difference between a bond and insurance? Insurance protects you (the contractor) against losses, while bonds protect others (consumers and regulators) from your potential non-compliance. Insurance pays you if you have a covered loss; bonds pay others if you fail to meet your obligations. Both are essential components of a contractor’s risk management strategy.

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