Florida Construction Bonds and What To Know

If you wish to run your construction business in Florida on firm legal grounds, the first condition that you will be required to fulfill is to buy a construction bond. Before buying one though, you will also have to ensure that the construction bond you are buying is of the right type, only then it will give you the desired protection against unpredictable events. In the state of Florida, construction bonds are primarily used as an instrument of guarantee for successful completion of the construction project.

In Florida, the cost of buying this bond for a construction project is currently fixed at 100,000 USD. There is also provision for adjustment in the amount depending entirely on the nature and type of construction project for which this bond is being acquired by the contractor. Another thing to keep in mind here is the fact that your needs for bonding and insurance won’t actually end here, because the Florida Department of Business and Professional Regulation has a long list of licensing classifications for different kinds of construction projects undertaken by contractors for construction companies, and each classification has its own set of requirements that you will be required to fulfill when buying a construction bond.

That’s why; it becomes all the more important that you devote proper time in understanding the exact category of classification your construction bond will fall in, so that you buy the appropriate construction bond for the type of contractual work you are going to undertake in the state of Florida. This is the only thing that will help you in running a legal construction business in this state without any trouble with the law.

To get proper advice on choosing the right classification for your construction bond, your best bet would actually lie on the Surety Company you are going to buy your construction Bond from. If you choose wisely and pick a company that has plenty of experience in this area, you are definitely going to do your chances a world of good in choosing the appropriate construction bond for your contractual work in this state. A well established Surety company would have sound advisers on their panel that would be readily available to offer you any help in any matter regarding your bond application. Moreover, a good surety company would also give you the convenience of applying for a bond online.