Construction License ($20,000) Bond - Statewide in Florida
Table of Contents
Brief Summary
The $20,000 figure ties to the Division I tier of Florida's contractor financial stability rule, which covers general, building and residential contractors. Specialty trades fall in Division II at $10,000. Knowing your division keeps you from buying the wrong amount, and a surety bond lets you show financial stability without waiting to rebuild a credit score.
Florida Construction Industry Licensing Board Rule 61G4-15.006, as adopted in 2007, listed a financial stability bond payable at the direction of the Board of $20,000 for Division I applicants and $10,000 for Division II. Division I is general, building and residential contractors. Current DBPR applications describe meeting financial stability with a FICO score of 660 or higher or a Board approved 14 hour course, so confirm with CILB that a bond is being requested before it is issued.
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How to Apply for a Construction License ($20,000) Bond:
- Confirm your license category is general, building or residential, the Division I classes under Fla. Stat. 489.105.
- Get the exact bond wording, obligee and amount from the Construction Industry Licensing Board or the office requesting the bond.
- Provide the applicant's name and DBPR application or license number.
- Complete the bond application and review the quoted premium.
- Pay the premium and receive the executed $20,000 bond.
- Submit the bond as directed with your DBPR application or to the requesting office.
Detailed Information About the Florida Construction License ($20,000) Bond:
Check your division first
Fla. Stat. 489.105 splits Florida contractors into two divisions. Division I is made up of general contractors, building contractors and residential contractors. Division II covers the specialty trades, such as roofing, plumbing, air conditioning, mechanical, pool and spa, solar and underground utility contractors. The $20,000 amount on this page matches the Division I tier.
Where the bond comes from
The Construction Industry Licensing Board rule on financial responsibility and financial stability, Rule 61G4-15.006 of the Florida Administrative Code, was adopted in 2007 with a financial stability bond payable at the direction of the Board in the amount of $20,000 for Division I applicants and $10,000 for Division II applicants. That version also let half of the bond requirement be met by completing a 14 hour financial responsibility course, required a credit score of 600 or higher for financial responsibility, and let an applicant meet both requirements with a consumer credit report score of 660 or higher.
What the current application says
DBPR's current CILB application forms, effective July 2024, state that financial responsibility and stability can be shown by a credit score of 660 or higher with no unsatisfied judgments or liens. An applicant below 660 must provide proof of a Board approved 14 hour financial responsibility course. The forms refer applicants to Rule 61G4-15.006 for details. If the Board or a building department has asked you for a $20,000 bond, get its exact wording and obligee and confirm the current form and filing steps with the Construction Industry Licensing Board before the bond is issued.
What the bond guarantees
A financial stability bond stands behind the contractor's financial obligations while licensed and is payable at the direction of the Board. The surety pays valid claims up to the bond amount and then recovers that money from the contractor.
Eligibility and Requirements for a Florida Construction License ($20,000) Bond:
- Bond amount of $20,000, the Division I tier in Rule 61G4-15.006 as adopted in 2007.
- Bond payable at the direction of the Florida Construction Industry Licensing Board.
- Applicant name matching the DBPR application exactly.
- Personal credit review of the qualifying individual.
- Current DBPR forms also list a FICO score of 660 or higher, or a Board approved 14 hour course, for financial stability.
Florida Construction License ($20,000) Bond FAQs:
It is the Division I amount, which applies to general, building and residential contractors. Specialty trades such as roofing, plumbing, air conditioning and pool contractors are Division II, where the rule listed $10,000.
Rule 61G4-15.006 deals with financial responsibility and financial stability. The 2007 version listed this bond as one way to satisfy financial stability, alongside a qualifying credit score and a 14 hour financial responsibility course.
DBPR's July 2024 application forms say an applicant below 660 must complete a Board approved 14 hour financial responsibility course. If you have been told to post a bond instead or as well, confirm the requirement with CILB before buying it.
The surety prices the bond from the bond amount and an underwriting review of the qualifying individual, mostly personal credit. Because this bond often comes up for applicants with credit issues, expect the surety to look closely at judgments and liens.
