Florida Performance and Payment Bonds

Bond Overview

• Purpose: Performance bond — completion guarantee for the project owner. Payment bond — payment guarantee for subs, labor, and suppliers.
• Who Needs It: General contractors bidding on Florida public work, subcontractors bonded by GC contract terms, private owners requiring bonds by contract.
• Regulating Authority / Statute: Florida Statutes Section 255.05 (statewide public entities); Florida Statutes Section 337.18 for Florida Department of Transportation (FDOT) contracts.
• Public Contract Threshold: Over $200,000 for public contracts (counties, cities, and state agencies). For state contracts, bonds are not required up to $100,000, and state agencies have discretion to exempt contracts between $100,000 and $200,000.
• Bond Amount: 100% of the contract price for both bonds.
• Premium Rates: Start at 1% — typically 1% to 3% of the contract amount.

Disclaimer: Requirements, thresholds, and bond costs listed on this page are accurate as of September 3, 2026, but are subject to change by federal and state regulatory authorities or surety underwriters — for current rates and requirements, call 866-362-6637.

Who Needs a Florida Performance and Payment Bond?

Florida public entities and many private owners require this bond before work starts, not after.

• General contractors bidding public contracts over $200,000
• Subcontractors required to bond by the general contractor’s contract terms
• Contractors on Florida Department of Transportation (FDOT) projects, which run their own $250,000 waiver threshold under Section 337.18
• Private-project contractors where the owner or lender requires bonding regardless of contract size

Counties, cities, and political subdivisions have the discretion to waive bond requirements for contracts valued at $200,000 or less. Not sure if your contract hits the threshold? We’ll check it before you bid.

Florida Performance and Payment Bond Requirements

Florida Statutes Section 255.05 (Florida’s Little Miller Act) sets the general bonding rules for Florida public contracts; Florida Department of Transportation (FDOT) work follows its own statute on top of it.

• Florida Statutes Section 255.05 — triggers on public building or public works contracts over $200,000 for counties, cities, state agencies, and other political subdivisions (state agencies may waive bond requirements for contracts between $100,000 and $200,000).
• Performance bond amount — equal to 100% of the contract price.
• Payment bond amount — also equal to 100% of the contract price; covers all persons who furnish labor, services, or materials on the project.
• Filing — the contractor executes and records the bond in the public records of the county where the project sits, then delivers a certified copy to the public entity; the awarding agency won’t issue notice to proceed until both bonds are filed.
• DOT carve-out — FDOT contracts follow Florida Statutes Section 337.18 instead of 255.05, with its own $250,000 threshold. (Under Section 255.05, for general public contracts over $250 million, alternate bond amounts may be determined if full coverage is unavailable.)
• Private work — private-project bonding is set by the owner or lender’s contract, not by statute; Florida law doesn’t require it on private jobs of any size.