Surety Bond Encyclopedia

Contractor License ($2,000) Bond - Sanford, FL in Florida

Brief Summary

Florida limits what a city can ask for here. Under Florida Statutes 489.131(3)(e), a city or county can require one bond for each contractor, the bond cannot exceed $5,000, and it is conditioned only on compliance with the Florida Building Code. Sanford's $2,000 bond sits well inside that limit, and the premium you pay is a fraction of the face amount.

This $2,000 contractor license bond is filed with the City of Sanford Building Division at 300 N Park Ave. Florida Statutes 489.131(3)(e) lets a city require one bond for each contractor, up to $5,000, conditioned only on compliance with the Florida Building Code. Confirm the current bond form, obligee wording and filing steps with the Building Division before the bond is issued.

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How to Apply for a Contractor License ($2,000) Bond:

  • Hold the state contractor license for the work you will permit in Sanford.
  • Contact the Sanford Building Division at (407) 688-5150 for the current bond form and obligee wording.
  • Have your business name exactly as it appears on your state license.
  • Complete the surety application and review the quoted premium.
  • File the executed $2,000 bond with the Building Division before you pull permits.
  • Keep the bond in force for as long as the Building Division requires it.

Detailed Information About the Florida Contractor License ($2,000) Bond:

What Florida law allows

Florida Statutes 489.131(3) says nothing in the contractor licensing law limits the power of a municipality or county to require one bond for each contractor in an amount not to exceed $5,000. Paragraph (3)(e) sets the rules for that bond:

  • It is conditioned only upon compliance with the Florida Building Code adopted under section 553.73.
  • It must be equally available to all contractors, without regard to how long a contractor has been certified or registered and without regard to any financial responsibility requirements.
  • It is payable to the Florida Homeowners' Construction Recovery Fund and filed in each county or municipality where a building permit is requested.
  • Bond reciprocity is granted statewide.
  • These bonds count toward any financial responsibility requirement imposed by statute or rule.

The warranty exemption

A contractor who provides a third party insured warranty policy for a new building or structure, for the benefit of the purchaser or owner, is exempt from the bond requirement for that building or structure. The exemption applies project by project.

Your state license is still required

The bond does not replace a state contractor license. The Building Division tells property owners to ask to see a contractor's state license, and notes that state law requires the license number on the business card and proposal. A general or building contractor pulls the main permit, and state licensed subcontractors pull their own permits.

Filing in Sanford

The City of Sanford Building Division is at 300 N Park Ave, Sanford, FL 32771, phone (407) 688-5150, email Building@Sanfordfl.gov. Permits are applied for through the city's Citizenserve portal. Because the statute makes these bonds payable to the Florida Homeowners' Construction Recovery Fund, check the obligee and payee wording on Sanford's form and confirm the filing steps with the Building Division before the bond is issued.

Eligibility and Requirements for a Florida Contractor License ($2,000) Bond:

  • Bond amount of $2,000, within the $5,000 limit set by Florida Statutes 489.131(3)(e).
  • Conditioned only on compliance with the Florida Building Code.
  • One bond for each contractor.
  • Obligee and payee wording as shown on the City of Sanford form.
  • Owner credit review by the surety.

Florida Contractor License ($2,000) Bond FAQs:

Can a Florida city require more than a $5,000 contractor bond?

Florida Statutes 489.131(3)(e) caps a local contractor bond at $5,000 and allows one bond for each contractor. Sanford's bond is $2,000.

What does the bond guarantee?

Under 489.131(3)(e) the bond is conditioned only upon compliance with the Florida Building Code adopted under section 553.73.

Is any contractor exempt?

A contractor who provides a third party insured warranty policy for a new building or structure, for the benefit of the purchaser or owner, is exempt from the bond requirement for that building or structure. The exemption covers that project only.

Does the bond replace my state license?

No. Sanford's Building Division expects contractors to hold a state license, and state law requires the license number on business cards and proposals.

Where do I file it?

With the City of Sanford Building Division, 300 N Park Ave, Sanford, FL 32771, phone (407) 688-5150. Confirm the current form before the bond is issued.

Official and Additional Resources for the Florida Contractor License ($2,000) Bond:

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