Common Law bonds aren’t defined by statutes, and that matters for Florida contractors.

Title: Understanding Bonds on Florida Construction Projects: Common Law vs. Statutory Types

If you’ve ever walked a Florida job site and glanced at the contract binder, you’ve probably noticed a few lines about bonds. They sound like legalese, but bonds are really part of the safety net that keeps construction projects moving—protecting the public, the owner, and the contractor. In Florida, two broad families shape how bonds work: statutory bonds, created and guided by written laws, and Common Law bonds, born from long-standing court decisions rather than a specific statute. Let’s untangle what that means for you as a builder, estimator, or project manager.

What’s a bond, anyway?

At its core, a bond is a promise backed by a third party (the surety) to fulfill certain obligations if something goes wrong. In construction, you’ll often hear about performance bonds, payment bonds, and liability bonds. Each serves a distinct purpose:

• Performance bonds: guarantee that the contractor will complete the project according to the contract terms.

• Payment bonds: ensure suppliers and subcontractors get paid, even if the primary contractor runs into trouble.

• Liability bonds: provide coverage related to injuries or damages that may occur on the job.

Two paths, one goal: clarity and reliability

Here’s the thing about bonds in Florida: not all bonds are born equal. Some are defined and regulated by statutes—clear rules you can point to in writing. Others aren’t tied to a statute at all; they come from common-law principles, which grow out of court decisions and traditional practices rather than a specific lawbook.

Statutory bonds: rules you can count on

Statutory bonds are a kind of bond that Florida law explicitly creates and regulates. They’re tied to statutes that spell out when they’re required, what protections they offer, and how claims are processed. On a project, you’ll often see:

• Performance bonds required by state or local government contracts.

• Payment bonds mandated to protect subcontractors and material suppliers.

• Licensure-related bonds that some trades must carry to operate legally in Florida.

Because they’re codified, statutory bonds leave less room for interpretation. If the contract or the law says a bond must be in place, the obligations are clearly defined, the claim process is laid out, and the timeframes are predictable. For many public projects and regulated professions, statutory bonds are the default expectation.

Common Law bonds: flexibility with a caveat

Common Law bonds aren’t drawn from statutes. They arise from established legal principles, past court rulings, and customary business practices. They can adapt more readily to the specifics of a project or a unique risk profile because they aren’t tethered to a single written statute.

That flexibility can be a strength:

• They can accommodate unusual project arrangements or bespoke contracting structures.

• They rely on the strength of established legal precedent, which can guide dispute resolution.

But that flexibility also means less certainty. The exact terms, remedies, and how a claim might be handled can vary case by case, depending on jurisdiction and the facts at hand. For Florida contractors, the practical takeaway is simple: when a bond isn’t defined by statute, it’s essential to spell out the expectations clearly in the contract and ensure the bond instrument aligns with the client’s risk tolerance and project specifics.

Why this distinction matters for Florida builders and businesses

The Florida construction landscape is lively and complex. Public projects, private developments, and everything in between all ride on the certainty bonds provide. Here’s why the distinction matters in real life:

• Compliance and risk management: If a project requires a statutory bond, you’ll want to know the exact form, the agency involved, and the claim procedures. Miss a mandated bond, and you risk project delays or penalties. With Common Law bonds, you’ll want to ensure the contract language, the context, and the applicable court principles are aligned so there’s no gap in coverage when trouble shows up.

• Clarity in contracts: Contracts that clearly state bond requirements reduce ambiguity. Whether a bond is statutory or Common Law, the more explicit the bond terms, the smoother the project runs.

• Relationships with sureties: Surety companies look for well-defined obligations. Projects built on statutory bonds tend to offer more predictability for the surety. Common Law bonds require careful drafting and a shared understanding of expectations to keep those relationships strong.

A practical lens: what this means on the ground

Think about a typical Florida project with a general contractor, a pool of subcontractors, and a material supplier chain. If the contract calls for a statutory performance bond, you’ll find a statute that governs the bond’s form, the triggers for a claim, and the remedies. If a bond follows Common Law principles, you’ll want to confirm:

• The exact obligations the bond covers (what constitutes “completed work” in this project’s context).

• The process for resolving disputes or claims (who steps in, how notices are served, and typical timelines).

• Any discretionary elements that might affect coverage, such as unique safety requirements or unusual site conditions.

In short, Florida contractors benefit from knowing not just that a bond exists, but how it’s defined and enforced in their specific situation.

A practical guide: how to navigate bonds on a project

If you’re working on a Florida job, here’s a simple, survival-friendly checklist to keep you in the loop:

1. Check the contract and project type

• Is the project a public works job, a school, a hospital, or a private development? Public works often brings statutory bond requirements, but that isn’t universal. Read the contract closely.

2. Identify the bond type early

• Look for language that points to statutory requirements or references a traditional bonding arrangement. If it’s not clearly statutory, expect that the bond is built on Common Law principles.

3. Talk to the surety

• Your bonding company or agent can confirm what form the bond takes, what standards apply, and what documentation will be needed if a claim arises. A quick call upfront saves headaches later.

4. Align the bond with the project’s risk profile

• Consider who benefits from the bond and who bears the risk. If there are large subcontractor submittals, larger performance requirements, or tight project timelines, make sure the bond reflects that reality.

5. Document everything

• Even with a Common Law bond, having written, detailed contract language helps everyone stay on the same page. Put expectations in writing about scope, timelines, changes, and remedies.

6. Know the claim mechanics

• Understand how a claim is filed, what notices are required, and what deadlines apply. This is where the distinction between statutory and Common Law bonds can have practical consequences.

Common mistakes to avoid

• Assuming all bonds on every Florida project are the same just because they’re all called “bonds.” The difference between statutory and Common Law bonds matters.

• Skipping contract review and relying on a generic bond form. If a bond isn’t tailored to the project, gaps can bite you when a dispute arises.

• Overlooking the role of the surety. The surety isn’t just a financial backstop; they’re a partner in ensuring project continuity. Open lines of communication help everyone perform better.

• Ignoring local nuances. Florida’s regulatory environment can shift from county to county, and the interplay between state statutes and local rules matters.

Bringing it all together

Bonds may not be the flashiest topic on a construction site, but they’re essential to keeping projects moving and money flowing. The Florida distinction between Common Law bonds and statutory bonds isn’t just academic—it affects how obligations are framed, how claims are handled, and how smoothly a project can weather challenges.

If you’re navigating a Florida project, remember:

• Statutory bonds are defined by law and provide a predictable framework.

• Common Law bonds rely on long-standing legal principles and can be more flexible, but require careful contract drafting and clear expectations.

• The best approach is to know which path your project takes, ensure the bond language matches the project’s risk, and keep the lines of communication open with the contractor, owner, and the surety.

Resources and references you can turn to

• Florida Department of Business and Professional Regulation (DBPR): a primary source for licensing, bonding, and regulatory requirements in Florida.

• Local construction boards and county offices: they often publish bond requirements for public works and municipal projects.

• Reputable surety providers: many offer guidance on bond forms, claim processes, and the practical differences between bond types.

• Industry associations and legal guides: they can help clarify how Common Law principles have evolved in construction context and how they’ve been applied in Florida courts.

Final reflection

Bonds aren’t just about money or penalties. They’re about trust—trust that projects stay on track, that workers and suppliers get paid, and that owners receive the value they were promised. For Florida builders, knowing whether a bond is statutory or Common Law isn’t a dry categorization; it’s a practical map for risk, compliance, and reliable project delivery. So next time you crack open a contract binder, take a moment to note the bond language. It might be the most important sentence on the page.