Bond Claims in Florida: What Contractors Need to Know to Stay Protected

In the construction industry, trust and performance go hand in hand. When a contractor agrees to a job, there’s a mutual expectation from the project owner and all stakeholders that the job will be completed as promised, and everyone will be paid. Surety bonds help reinforce that trust by providing financial backing in the event something goes wrong. But what happens when a contractor falls short—or is accused of doing so?

Enter the world of bond claims.

While most Florida contractors never experience a bond claim, it’s crucial to understand what they are, how the bond claim process in Florida works, and what can be done to avoid one. After all, a single claim—whether justified or not—can disrupt your project pipeline, damage your reputation, and limit your future bonding capacity.

In this post, we’ll break down what every contractor in Florida should know about bond claims, including how they happen, what they cover, and the steps you can take to protect your business and bonding status. And we’ll show you how Florida Risk Partners helps contractors avoid common pitfalls while staying compliant and competitive.

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What Is a Bond Claim?

A bond claim is a formal allegation that a contractor has failed to meet the terms of a bonded contract—either by not completing the work (performance bond claim) or by failing to pay subcontractors or suppliers (payment bond claim). The party filing the claim (the claimant) is seeking compensation from the surety company that backed the bond.

Bond claims can involve:

• Performance bonds – If the contractor doesn’t deliver the project per contract specs
• Payment bonds – If subcontractors or suppliers aren’t paid as agreed
• License and permit bonds – If a contractor violates licensing laws or local ordinances

Unlike traditional insurance, surety bonds are not a risk transfer product. If a surety pays out on a claim, the contractor (the principal) is typically obligated to repay the surety in full. That’s why managing your business to avoid claims is so important.

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How Common Are Bond Claims in Florida?

While the majority of Florida contractors never experience a claim, the risk increases when:

• Projects are larger or more complex
• Multiple tiers of subcontractors are involved
• There’s poor project documentation
• Cash flow issues arise
• Communication breaks down between parties

Florida’s booming construction economy and active public works sector make it a state where bond claims can and do occur—especially on municipal and state contracts governed by the Florida Little Miller Act (F.S. 255.05).

Understanding your responsibilities under Florida law and bond terms is your first line of defense.

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Common Reasons for Bond Claims

Here are the most common triggers for bond claims in Florida:

1. Non-Payment to Subcontractors or Suppliers

On payment bonds, this is by far the most common claim. If a subcontractor or supplier isn’t paid—whether due to oversight or financial trouble—they may file a claim directly with the surety.

2. Abandonment or Non-Performance

If a contractor fails to complete the job, walks off the project, or performs work that doesn’t meet contract specs, the owner may file a performance bond claim.

3. Failure to Follow Licensing Rules

With license and permit bonds, claims often stem from violations of local ordinances or unlicensed activity. For example, working without proper bonding in place in cities like Tampa or Orlando may prompt a regulatory complaint.

4. Timeline and Delay Issues

While not always cause for a claim, chronic delays without just cause can be cited as non-performance—especially if they affect milestones or funding draws.

5. Quality Disputes

Disagreements over workmanship can escalate into bond claims if they involve contract deviations or if repairs are refused.

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The Bond Claim Process: Step by Step

If a claim is filed on your bond, here’s what typically happens:

Step 1: The Claim Is Filed

The claimant submits a written notice of claim to the surety, detailing the alleged breach and the amount sought.

In Florida, subcontractors and suppliers must give notice within 45 days of first furnishing labor or materials (if not under direct contract with the GC), and must file suit within one year of last furnishing labor or materials.

Step 2: The Surety Investigates

The surety will:

• Request documentation from both the claimant and the contractor
• Review contracts, invoices, change orders, and payment records
• Evaluate whether the claim is valid and covered under the bond terms

Step 3: Surety Decision

The surety will either:

• Deny the claim, if it’s invalid or outside the bond’s scope
• Settle the claim, and then seek reimbursement from the contractor
• Step in to perform or fund work, in the case of performance bond claims

Step 4: Resolution and Recourse

If the surety pays out, the contractor must repay the amount, along with potential legal fees or penalties. Failure to repay can affect your credit, future bonding capacity, and license status.

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How to Avoid Bond Claims

Most bond claims are preventable with proper risk management, documentation, and communication. Here’s how Florida contractors can reduce the risk of a claim:

1. Keep Clear and Accurate Records

Document everything—contracts, change orders, payment schedules, delivery receipts. If a dispute arises, these records are your strongest defense.

2. Pay Subcontractors and Suppliers Promptly

Nothing triggers claims faster than late or missed payments. Use a system to track payables and release payments based on clearly defined milestones.

3. Communicate with Project Stakeholders

If delays, disputes, or issues arise, communicate them early with the owner, subs, and suppliers. Don’t wait for problems to escalate.

4. Know the Bond Terms

Every bond has conditions, exclusions, and deadlines. Know what triggers a claim and stay ahead of compliance obligations.

5. Prequalify Your Subs

If you’re a GC, make sure your subcontractors are financially stable, licensed, and reputable. Their mistakes can become your liability.

6. Stay Within Project Scope

Avoid making changes to materials, timelines, or methods without written approval from the owner or architect. Unauthorized deviations can lead to claims.

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What to Do If a Claim Is Filed Against You

If you find yourself facing a bond claim in Florida, act quickly:

1. Don’t ignore it – Respond to the surety’s inquiry immediately.
2. Review the claim carefully – Compare the claim to your records. Is it valid? Was payment made? Was work completed?
3. Gather your documentation – Provide invoices, proof of payment, signed change orders, and communications to support your position.
4. Work with your surety and agent – Your surety and bonding agent can help navigate the situation and avoid escalation.
5. Consider legal counsel – For larger claims or when facts are disputed, consult with a construction law attorney familiar with Florida surety law.

The goal is to resolve the matter quickly, maintain your reputation, and preserve your bonding eligibility.

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How Bond Claims Affect Your Future

Even if a claim is resolved, it can have long-term consequences:

• Reduced bonding capacity
• Higher bond premiums
• Loss of preferred surety status
• Damage to your business credit
• Difficulty qualifying for future public work

That’s why the team at Florida Risk Partners works closely with contractors to help them avoid risky situations in the first place and support them through the resolution process if needed.

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How Florida Risk Partners Helps Contractors Avoid Bond Claims

At Florida Risk Partners, we do more than issue bonds—we help Florida contractors build bonding programs that are sustainable, scalable, and claim-resistant.

Here’s how we support you:

• Proactive education – We provide resources like this blog series to help you understand your bonding responsibilities.
• Fast, 24/7 bonding access – Our online platform lets you issue bonds any time, so you never miss a deadline or scramble last-minute.
• Contract and risk review – Before you sign a major project, we help you review bonding requirements and potential red flags.
• Claims support – If a dispute arises, we advocate on your behalf and work with the surety to minimize damage and resolve it fairly.

Our mission is to be your bonding partner, not just a transaction processor.

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Conclusion: Stay Ahead of Bond Claims by Managing Risk

Bond claims in Florida are serious—but they’re also largely avoidable. By staying organized, communicating proactively, paying your vendors, and understanding your responsibilities, you can reduce the chances of ever facing one.

At the same time, it’s essential to have a bonding partner that not only helps you get bonds quickly, but supports your long-term success.

That’s where Florida Risk Partners shines.

We help Florida contractors stay bond-ready, risk-aware, and fully equipped to win more jobs—without the fear of unexpected claims derailing their momentum.

Stay tuned for Week 12, where we’ll bring the series home with a comprehensive look at how to prepare your business financially for bigger bond opportunities and grow your construction business with confidence.