Before contractors in Florida can begin construction projects, they may be required to post a surety bond. Florida has bonding requirements for contractors at the local and state level, which vary based on your license classification. Typically, your required bond amount at the state level will be between $5,000-$10,000 for Division II contractors (specific trades such as plumbing or HVAC) and $20,000 for Division I contractors (general residential/commercial).
Contractors agree to comply with building codes and regulations established by their city, county, and state to obtain their license. There are other licensing requirements, such as getting a contractor license bond. A contractor bond provides individuals (e.g., homeowners) that suffer losses as a result of poor workmanship from a licensed contractor the ability to recover damages via a claim against the contractor’s bond. The surety company that writes the contractor’s bond will determine if the claim is valid and then pay out the claim up to the bond amount. The licensed contractor will be financially responsible for reimbursing the surety for any claims they pay out, plus additional fees and expenses incurred.
Division I and II contractors who must have a license for their trade will need a bond if their FICO credit score is 660 or below. These contractors include but are not limited to:
The bond amount you need for the Florida Construction License Bond will vary depending on the type of contractor you are. Division I contractors must have a $20,000 bond amount, while Division II contractors must have a $10,000 bond amount. Furthermore, you can complete a financial responsibility course to reduce these required amounts by 50%.
The business or entity that requires you to get a surety bond is known as the obligee. The obligee for this bond is the Florida Construction Industry Licensing Board of the Florida Department of Business and Professional Regulation. Their contact information is listed below:
Division of Professions
Construction Industry Licensing Board
2601 Blair Stone Road
Tallahassee, FL 32399-0791
Phone: 850-487-1395
For those with FICO credit scores 660 or below, the state requires you to obtain a construction license bond to establish financial responsibility. The surety company will assign you a premium rate after examining your credit (using a soft credit check) and other factors, such as business experience. Generally, these rates begin at around 3-5% for individuals with a credit score near 660. Simply multiply this rate by your required bond amount to determine your premium.
Keep in mind that there are also bond requirements at the local government level. Always check your local municipalities for additional bonding requirements. Bonds at the local level are typically lower in cost and may not require a credit check.
Applying for your bond with EZ Surety Bonds is quick and free. Simply find the bond you need on our site, fill out the application, and our surety experts will reach out to you with your free quote within 24 hours.
If you ever have questions or need help with your surety bonding needs, call our surety experts at 1-866-546-4605 or reach out via email at info@ezsuretybonds.com.
How do I get a Florida Contractor License?
To get your Florida contractor license, you must first determine what license classification you need. Once you know your license type, you’ll need to:
What is a general contractor license?
Obtaining a general contractor license allows you to perform work over a wide variety of trades within the state the license is issued. For these reasons, it’s one of the most highly-coveted licenses a contractor can obtain. To earn a general contractor license, locate the regulatory agency for contractors in your state and complete their licensing requirements.
I purchased my Florida Construction License Bond—now what?
After purchasing a Florida Construction License Bond, we will mail the original bond directly to you, the principal. Most obligees require you to file the original document with them; however, always be sure to double-check your obligee’s filing requirements before mailing out your bond.
You’ll know if you need a surety bond because some entity will have required you to obtain one. They must also inform you of which specific bond type you’ll need. There are thousands of bonds across the country, all of which vary by state and industry.
Visit EZSuretyBonds.com to browse hundreds of bonds by state, type, or industry.
