A Florida contractor license bond is required of a construction contractor applicants if he or she cannot evidence financially responsibility and financially stability. The Construction Industry Licensing Board is the division of the Department of Business Regulation that reviews applicants and issues licenses. The Board, for the purposes of licensing will assume an applicant financially responsible and stable and waive the Florida contractor bond requirement if:
1.) There are no unsatisfied liens against the applicant.
2.) There are no unsatisfied judgments against the applicant.
3.) Applicant has a 660 FICO derived credit score or higher.
If the three preceding conditions do not exist then a license applicant may BECOME financially responsible and stable by offering a Florida contractor license bond in a form and in the amount required by the Board for the license class for which he or she is applying. As per the Board’s published instructions, each applicant must submit a personal credit report and a credit report for the business he or she intends to qualify if any. The credit report must be from a nationally recognized credit reporting agency and indicate that all records have been searched on a federal, state and local level. The credit report must not show any unsatisfied liens or judgments against the applicant or the applicant’s company. The applicant’s personal credit report must also include the applicant’s credit score and must indicate that the credit score is a FICO or Beacon score. If an applicant’s credit score is not at least 660, then a Florida contractor license bond will be needed. The Board divides construction contractor licenses into two classes called Divisions. Each Division covers a specific type of contracting and its appropriate surety bond. First Division contractors engage in work defined under Sections (a) through (c) of §489.105. These licensees are GCs, building contractors and residential contractors. This class requires a Florida Division I contractor bond in the amount of $20,000. The Second Division consists of specialty contractors defined under Sections (d) through (q) of the same statute. These licensees include sheet metal experts, roofers, HVAC, etc. This class requires a Florida Division II contractor bond in the amount of $10,000.
Because of the difficulty in obtaining surety support and other factors considered by the Board, a contractor can request and be granted a REDUCTION in the amount of bond required under the “660 bond” rule. A contractor license applicant may attend a financial responsibility course given by and approved training facility. Doing so effectively cuts the amount of the Florida contractor bond amount in HALF. You may review a list of the approved providers by clicking here.
Florida surety leader, Surety One, Inc. focuses on supporting the bonding needs of the commercial, heavy industrial and construction contracting industries. We offer this class of bond to all applicants in every state required. Visit SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for an Florida contractor license bond application or information about any surety need. Recuérde que también asesoramos en SU idioma, así que comuníquese con nosotros, SU compañía afianzadora preferida para esta fianza u otras!
