Bid Bonds in Florida – Your Ticket to Bigger Construction Opportunities

For many Florida contractors, growth isn’t just about working harder—it’s about working smarter and securing bigger, more profitable projects. But before you can break ground on a lucrative public contract or large-scale private development, there’s usually one critical step: submitting a bid bond. Whether you’re pursuing a municipal road project or bidding to renovate a commercial property, bid bonds are your way of saying, “I’m serious, qualified, and ready to get to work.”

This article explains bid bonds, their requirements in Florida, and their role for contractors. Securing a bid bond can open bigger opportunities for your construction business. Florida Risk Partners simplifies the process with a 24/7 bonding platform, reducing paperwork delays.

What Is a Bid Bond?

A bid bond is a type of surety bond that contractors submit when bidding on a project—most commonly for public sector jobs. The bond guarantees that the contractor will honor the bid submitted, and if awarded the contract, will enter into the agreement and provide the necessary performance and payment bonds. Essentially, it protects the project owner (the obligee) from the risk of a winning bidder backing out.

A contractor submits a bid with a bid bond, usually 5% to 10% of the bid. If the contractor fails to move forward, the owner can file a claim against the bond. This claim helps recover costs for re-bidding or accepting a higher bid from another contractor.

A bid bond is not insurance. If a claim is paid out, the surety will seek reimbursement from the contractor. That’s why surety companies require a review of your financials and experience before issuing one—it’s a vote of confidence that you’re able and willing to follow through.

Why Are Bid Bonds Required in Florida?

In Florida, bid bonds are often required for public construction projects due to state laws that prioritize accountability in taxpayer-funded work. The key regulation is Florida Statute §255.05, commonly known as Florida’s Little Miller Act, which requires contractors to furnish performance and payment bonds on most public jobs exceeding $100,000. To ensure that only serious and capable contractors bid on these projects, government agencies almost always require a bid bond at the proposal stage.

Bid bonds are also common in private construction, particularly for large-scale commercial developments or projects financed by lenders. Owners or developers want to minimize the risk of selecting a contractor who wins the bid but can’t deliver. A bid bond assures them that you’ve been vetted by a surety and have the financial and operational capacity to complete the project.

In short, Florida bid bond requirements are about risk management. They prevent project delays, cost overruns, and the need to re-start the bidding process due to an unreliable contractor.

How Bid Bonds Work: A Real-World Example

Let’s say you’re a Florida general contractor bidding on a $1 million public infrastructure job in Tampa. As part of the bid package, you’re required to include a 10% bid bond—so you submit a bond worth $100,000. The municipality reviews all proposals and selects yours as the winner.

At this point, you’re expected to:

1. Sign the contract
2. Provide the required performance and payment bonds
3. Start the project as scheduled

If you follow through, the bid bond expires with no further action needed.

But if you fail to meet those obligations—maybe your financing falls through or your bonding capacity is insufficient for the performance bond—the municipality can file a claim against your bid bond. The surety will pay them up to $100,000 to cover the cost of selecting another contractor or bridging the price gap to the next-lowest bidder. And then the surety will turn to you for reimbursement.

This is why bid bonds in Florida construction carry significant weight. Submitting one is a statement that you’ve done your due diligence and are fully prepared to execute the contract.

Who Needs a Bid Bond?

Most contractors who want to scale their business and go after public work will need a bid bond sooner or later. You’ll likely encounter bid bond requirements if you are:

• Bidding on state-funded construction projects over $100,000
• Pursuing county or municipal contracts, especially in major metro areas like Orlando, Jacksonville, or Miami
• Seeking school district or university construction contracts
• Bidding on federally-funded jobs administered by Florida-based agencies
• Competing for large private-sector developments with strict prequalification standards

Bid bonds aren’t typically required for small residential work or projects under a few thousand dollars. But as your company grows, they become a standard part of the pre-bid process for major opportunities.

How Much Do Bid Bonds Cost?

Here’s some good news: bid bonds are often free for qualified contractors. That’s right—many surety companies provide bid bonds at no cost, especially if you already have a relationship with them and plan to secure the performance and payment bonds for the project through the same provider.

In other cases, there may be a small administrative fee (usually under $250), but it’s minimal compared to the opportunity a bond unlocks. The real cost comes from performance and payment bonds, which are based on a percentage of the contract value (typically 1% to 3%). But bid bonds? They’re more like a placeholder—a free ticket to enter the game, as long as you play by the rules.

What Sureties Look for Before Issuing a Bid Bond

Before issuing a bid bond, a surety company wants to ensure you’re not bidding on a project that exceeds your capabilities. They’ll evaluate your:

• Experience with similar project types and sizes
• Credit history and financial stability
• Work-in-progress (WIP) report to ensure you’re not overextended
• Backlog capacity to confirm you can take on new work
• Bonding history and claims record

If you already have a bonding line in place, getting a bid bond is usually as simple as submitting project details and having the surety issue the bond. For first-time users, you may need to submit financial statements, resumes, and past project summaries. It might feel like a hassle, but once you’re approved, the door to bigger opportunities swings wide open.

The Risk of Not Having a Bid Bond

Skipping the bid bond is rarely an option for public projects—it’s typically a hard requirement. Submitting a bid without the required bond will get your proposal thrown out immediately. But even in cases where the bond isn’t mandatory, not including one can weaken your proposal.

Project owners and developers want to work with contractors they can trust. A bid bond shows them you’ve been vetted, and a surety confirms you’re qualified and committed. Failing to offer that reassurance raises a red flag, especially when other bidders provide bonds.

Worse, if you win a bid without a bond and then can’t qualify for the performance bond, you could lose the job and damage your reputation. Owners might blacklist you from future bidding, and word spreads quickly in Florida’s contracting community.

Bottom line: don’t treat bid bonds as optional—they’re a vital part of professional contracting in Florida.

How Bid Bonds Fit into the Bigger Picture

Bid bonds are just one part of the larger bonding process, but they’re the first major milestone in pursuing larger-scale projects. The full sequence usually looks like this:

1. Prequalification (your bonding agent reviews your financials and experience)
2. Bid Bond Submission (you enter the bid process)
3. Contract Award
4. Performance and Payment Bonds Issued
5. Project Completion
6. Bond Close-Out

So think of the bid bond as your opening move. It shows you’re playing at a higher level and ready to compete for significant contracts. By securing bid bonds consistently, you build a track record with your surety, which can help you grow your bonding capacity over time—allowing you to bid on even larger jobs with more confidence.

Florida Risk Partners Makes Bid Bonds Easy

If all this sounds complicated or time-consuming, don’t worry—we’ve simplified the entire process. At Florida Risk Partners, we offer a 24/7 online quote/bind/issue bonding platform that allows contractors to request and issue bid bonds in minutes—not days.

Here’s what makes our system different:

• Access anytime: Nights, weekends, holidays—it doesn’t matter. If you need a bid bond at 10 PM, we’ve got you covered.
• User-friendly interface: You don’t need to be a tech wizard. Just log in, enter your bid details, and generate your bond.
• Fast turnarounds: For prequalified contractors, many bid bonds can be issued instantly. Even if you’re new, we’ll walk you through the onboarding process so you can get bonded fast.
• Support when you need it: Have a question or a unique situation? Our experienced team is available to help by phone or email.

In a high-stakes environment where deadlines matter, having access to quick and reliable bid bonds can be the difference between winning the job or missing the opportunity. Our goal is to take the friction out of bonding so you can focus on what you do best—building.

Conclusion: Bid Bonds Are the First Step Toward Bigger Wins

If you’re serious about growing your construction business in Florida, bid bonds aren’t optional—they’re essential. They show clients and agencies that you’re credible, capable, and committed to following through. Whether you’re bidding on a public job in Miami, a county road project in Central Florida, or a private development in the Panhandle, including a bid bond in your proposal instantly elevates your professional standing.

Don’t let paperwork or confusion hold you back. At Florida Risk Partners, we make it easy to get the bonding you need with our online, 24/7 bid bond portal. Whether you’re submitting your first bid or your hundredth, we’re here to help you win the work and take your business to the next level.

Let the competition worry about red tape. With the right support, you can bid with confidence—and build with certainty.