eLaws of Florida

  SECTION 713.245. Conditional payment bond.  


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  • 1(1) 2Notwithstanding any provisions of ss. 7713.23 8and 9713.24 10to the contrary, if the contractor’s written contractual obligation to pay lienors is expressly conditioned upon and limited to the payments made by the owner to the contractor, the duty of the surety to pay lienors will be coextensive with the duty of the contractor to pay, if the following provisions are complied with:
    64(a) 65The bond is listed in the notice of commencement for the project as a conditional payment bond and is recorded together with the notice of commencement for the project prior to commencement of the project.
    100(b) 101The words “conditional payment bond” are contained in the title of the bond at the top of the front page.
    121(c) 122The bond contains on the front page, in at least 10-point type, the statement: THIS BOND ONLY COVERS CLAIMS OF SUBCONTRACTORS, SUB-SUBCONTRACTORS, SUPPLIERS, AND LABORERS TO THE EXTENT THE CONTRACTOR HAS BEEN PAID FOR THE LABOR, SERVICES, OR MATERIALS PROVIDED BY SUCH PERSONS. THIS BOND DOES NOT PRECLUDE YOU FROM SERVING A NOTICE TO OWNER OR FILING A CLAIM OF LIEN ON THIS PROJECT.
    186(2) 187Except as specified in this section, all bonds issued under this section must conform to the requirements of s. 206713.23(1)(a), 207(b), (f), and (4). No action shall be instituted or prosecuted against the contractor or the surety after 1 year from the date the lien is transferred to the bond.
    237(3) 238The owner’s property is not exempt from liens filed under this part. All lienors must comply with the provisions of this part to preserve and perfect those lien rights.
    267(4) 268Within 90 days after a claim of lien is recorded for labor, services, or materials for which the contractor has been paid, the owner or the contractor may record a notice of bond as specified in s. 305713.23(2), 306together with a copy of the bond and a sworn statement in substantially the following form:

    322CERTIFICATE OF PAYMENT
    325TO THE CONTRACTOR

    328TO: Lienor 330(name and address from claim of lien)

    337Contractor 338(name and address)

    341Surety 342(name and address)

    345Under penalties of perjury, the undersigned certifies that the bond recorded with this certificate conforms with s. 362713.245, 363F.S., that the bond is in full force and effect, and that the contractor has been paid $ 381for the labor, services, and materials described in the Claim of Lien filed by 395dated , 396(year) , 397and recorded , 399(year) , 400in Official Records Book 404at Page 406of the Public Records of 411County, Florida.

    413Dated this 415day of , 417(year) 418.

    419(Owner)

    420(Address)

    421STATE OF FLORIDA

    424COUNTY OF

    426Sworn to (or affirmed) and subscribed before me this 435day of , 437(year) , 438by 439(name of person making statement) 444.

    445(Signature of Notary Public - State of Florida)

    453(Print, Type, or Stamp Commissioned Name of Notary Public)

    462Personally Known 464OR Produced Identification

    467Type of Identification Produced

    471(Contractor)

    472(Address)

    473STATE OF FLORIDA

    476COUNTY OF

    478Sworn to (or affirmed) and subscribed before me this 487day of , 489(year) , 490by 491(name of person making statement) 496.

    497(Signature of Notary Public - State of Florida)

    505(Print, Type, or Stamp Commissioned Name of Notary Public)

    514Personally Known 516OR Produced Identification

    519Type of Identification Produced

    523Any notice of bond recorded more than 90 days after the recording of the claim of lien shall have no force or effect as to that lien unless the owner, the contractor and the surety all sign the notice of bond.

    564(5) 565The clerk shall serve a copy of the notice, the bond, and the certificate on the contractor, the surety, and the lienor; certify to the service on the face of the notice, the bond, and the certificate; record the notice, the bond, and the certificate; and collect a fee in accordance with s. 618713.23(2)619.
    620(6) 621The contractor may join in a certificate of payment to the contractor at any time by recording a sworn statement substantially in the following form:

    646JOINDER IN CERTIFICATE OF PAYMENT

    651TO: Owner 653(name and address from certificate of payment)

    660Lienor 661(name and address from claim of lien)

    668Surety 669(name and address)

    672The undersigned joins in the Certificate of Payment to the Contractor recorded on , 685(year) , 686in Official Records Book 690at Page 692of the Public Records of 697County, Florida, and certifies that the facts stated in the Certificate of Payment to the Contractor are true and correct.

    717Dated this 719day of , 721(year) 722.

    723(Name)

    724(Address)

    725STATE OF FLORIDA

    728COUNTY OF

    730Sworn to (or affirmed) and subscribed before me this 739day of , 741(year) , 742by 743(name of person making statement) 748.

    749(Signature of Notary Public - State of Florida)

    757(Print, Type, or Stamp Commissioned Name of Notary Public)

    766Personally Known 768OR Produced Identification

    771Type of Identification Produced

    775(7) 776The clerk shall serve the joinder in certificate of payment on the owner, the surety, and the lienor; certify to the service on the face of the joinder; record the joinder; and collect a fee in accordance with s. 815713.23(2)816.
    817(8) 818If the contractor disputes the certificate of payment to the contractor, the contractor must record, not later than 15 days after the date the clerk certifies service of the certificate, a sworn statement in substantially the following form:

    856NOTICE OF CONTEST OF PAYMENT

    861TO: Owner 863(name and address from certificate of payment)

    870Lienor 871(name and address from claim of lien)

    878Surety 879(name and address)

    882Under penalties of perjury, the undersigned certifies that the contractor has not been paid or has only been paid $ 902for the labor, services, and materials described in the Certificate of Payment to the Contractor recorded in Official Records Book 922at Page 924of the Public Records of 929County, Florida.

    931Dated this 933day of , 935(year) 936.

    937(Name)

    938(Address)

    939STATE OF FLORIDA

    942COUNTY OF

    944Sworn to (or affirmed) and subscribed before me this 953day of , 955(year) , 956by 957(name of person making statement) 962.

    963(Signature of Notary Public - State of Florida)

    971(Print, Type, or Stamp Commissioned Name of Notary Public)

    980Personally Known 982OR Produced Identification

    985Type of Identification Produced

    989(9) 990The clerk shall serve a copy of the notice of contest of payment on the owner, the lienor, and the surety; certify service on the face of the notice; record the notice; and collect a fee in accordance with s. 1030713.23(2)1031.
    1032(10) 1033If the contractor has signed the certificate of payment to the contractor or the joinder in the certificate or the contractor fails to record a notice of contest of payment within 15 days after the date the clerk certifies service of a certificate of payment to the contractor signed by the owner, the lien shall transfer to the bond to the extent of payment specified in the certificate of payment to the contractor. To the extent the lien exceeds the amount specified in the certificate of payment to the contractor, such amount shall remain as a lien on the owner’s property. The surety may assert all claims or defenses of the owner regarding the validity of the claim of lien or of the contractor regarding the amount due the lienor.
    1163(11) 1164If the notice of contest of payment specifies that the contractor has been paid a portion of the amount due the lienor, the lien shall transfer to the bond to the extent of the payment specified in the notice of contest of payment. To the extent the lien exceeds the amount specified in the notice of contest of payment, such amount shall remain as a lien on the owner’s property. The surety may assert all claims or defenses of the owner regarding the validity of the claim of lien or of the contractor regarding the amount due the lienor.
    1263(12) 1264If there are any material misstatements of fact made by the owner or the contractor in any certificate of payment to the contractor, or by the contractor in any notice of contest of payment, the person making the material misstatement is guilty of a felony of the third degree, punishable as provided in s. 1318775.082, 1319s. 1320775.083, 1321or s. 1323775.0841324. The penalties apply individually and to the business entity if the false certificate is signed in a representative capacity.
    1344(13) 1345The certificate of payment to the contractor and the notice of contest of payment must be signed by the owner or the contractor individually if she or he is a natural person, by the general partner if the owner or the contractor is a limited partnership, by a partner if the owner or the contractor is a general partnership, by the president or a vice president if the owner or the contractor is a corporation, or by any authorized agent if the owner or the contractor is any other type of business entity.
    1438(14) 1439In an action to enforce a lien, the owner shall not be considered the prevailing party solely because the lien is transferred to a conditional payment bond after the action to enforce the lien is brought.
History.-s. 13, ch. 90-109; s. 9, ch. 92-286; s. 3, ch. 93-99; s. 58, ch. 95-211; s. 814, ch. 97-102; s. 16, ch. 98-246; s. 9, ch. 2001-211.

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