Public Construction Performance and Payment Bond - Lee County, Florida

Public Construction Performance and Payment Bond is a legal document that was released by the Procurement Management Department - Lee County, Florida - a government authority operating within Florida. The form may be used strictly within Lee County.

FAQ

Q: What is a Public Construction Performance and Payment Bond?
A: A Public Construction Performance and Payment Bond is a type of surety bond that is typically required for public construction projects.

Q: Why is a Public Construction Performance and Payment Bond required?
A: A Public Construction Performance and Payment Bond is required to protect the owner or the government entity in case the contractor fails to complete the project or fails to pay subcontractors, laborers, and suppliers for their work and materials.

Q: Who is typically responsible for obtaining a Public Construction Performance and Payment Bond?
A: The general contractor or the principal is typically responsible for obtaining a Public Construction Performance and Payment Bond.

Q: What does a Public Construction Performance and Payment Bond cover?
A: A Public Construction Performance and Payment Bond covers the performance of the contractor in completing the project and the payment to subcontractors, laborers and suppliers for their work and materials.

Q: How much does a Public Construction Performance and Payment Bond cost?
A: The cost of a Public Construction Performance and Payment Bond varies depending on the size and complexity of the project, as well as the contractor's financial strength and credit history.

Q: Who pays for a Public Construction Performance and Payment Bond?
A: The cost of a Public Construction Performance and Payment Bond is typically included in the contractor's bid and is ultimately paid for by the owner or the government entity.

Q: Can a subcontractor or supplier make a claim against a Public Construction Performance and Payment Bond?
A: Yes, subcontractors and suppliers who have not been paid by the contractor can make a claim against a Public Construction Performance and Payment Bond.

Q: What happens if a claim is made against a Public Construction Performance and Payment Bond?
A: If a valid claim is made against a Public Construction Performance and Payment Bond, the surety company that issued the bond will typically investigate the claim and may compensate the claimant if the claim is found to be valid.

Q: Can a contractor get a Public Construction Performance and Payment Bond with bad credit?
A: Obtaining a Public Construction Performance and Payment Bond with bad credit can be difficult, as surety companies typically require good credit and financial strength from the contractor.

Q: Are there alternatives to a Public Construction Performance and Payment Bond?
A: There are alternatives to a Public Construction Performance and Payment Bond, such as letters of credit or cash deposits, but these options may not provide the same level of protection and are often not accepted by government entities.