Construction on public projects in Florida comes with unique payment protections and unique legal requirements. Unlike private construction jobs, contractors, subcontractors, and suppliers generally cannot file a mechanic’s lien against public property. You cannot place a lien on a school, courthouse, municipal building, or public roadway project. Instead, Florida law protects payment bonds.
If you are unpaid for labor, materials, or services provided on a public project, your remedy is often a payment bond claim under Florida’s “Little Miller Act,” found in Florida Statutes §255.05. Understanding how these claims work is critical because strict deadlines apply, and missing one can eliminate your right to recover payment.
What Is a Payment Bond?
A payment bond is a surety bond posted by the prime contractor before work begins on most qualifying public projects. Its purpose is to guarantee that subcontractors, laborers, and material suppliers will be paid even if the contractor fails to make payment.
Florida generally requires a payment and performance bond for public construction contracts exceeding $100,000 involving the state, counties, cities, municipalities, or other public entities. The bond must be recorded in the public records of the county where the project is located.
This system protects both the public owner and downstream construction participants. Public property stays free from liens, while subcontractors and suppliers still have a legal path to recover unpaid balances.
Who Can File a Payment Bond Claim?
Not every party on a project has bond rights. Typically, the following may have valid payment bond claims:
- First-tier subcontractors
- Sub-subcontractors in certain circumstances
- Material suppliers
- Labor providers
Generally, the prime contractor cannot make a claim against its own bond, and suppliers to suppliers are often excluded. Coverage depends heavily on the claimant’s contractual relationship within the project chain. This is why documentation showing who hired whom is often one of the first issues reviewed in a bond claim dispute.
The Importance of Notice Requirements
One of the most common mistakes in Florida payment bond claims is failing to provide proper notice. Many claimants who do not have a direct contract with the prime contractor must serve a written Notice to Contractor and later a Notice of Nonpayment. These notices preserve bond rights and alert the contractor and surety that payment is being demanded.
In many cases, a claimant must provide notice more than 45 days after first furnishing labor or materials, but no later than 90 days after last furnishing labor or materials to the project. Missing this window can be fatal to the claim. Even strong claims can fail if the notice requirements are ignored.
Filing Suit Against the Surety
Sending notice is only part of the process. If payment is still not made, the claimant may need to file suit against the surety and potentially the contractor. Florida law generally requires the lawsuit to be filed within one year from the claimant’s final furnishing of labor, services, or materials. This deadline is strictly enforced.
Courts will not usually excuse a late filing simply because negotiations were ongoing. Waiting too long can permanently bar recovery, even when the money is clearly owed.
Common Disputes in Payment Bond Claims
Bond claims are often challenged by contractors or sureties for reasons such as:
- Improper or late notice
- Disputes over the scope of work performed
- Unapproved change order work
- Back charges and offsets
- Pay-if-paid or pay-when-paid arguments
- Defective work allegations
- Questions regarding claimant eligibility
Sureties investigate claims carefully and often request extensive supporting documentation before issuing payment. In some cases, litigation becomes necessary to enforce rights. This is where legal counsel becomes especially important.
Why Legal Guidance Matters
Payment bond claims are not simple collection matters. They involve statutory deadlines, notice rules, surety defenses, and contract interpretation.
A contractor may believe they are owed money, and be absolutely correct, but still lose the claim because a required notice was not sent properly.
Construction counsel helps by:
- Reviewing bond documents
- Confirming statutory deadlines
- Preparing compliant notices
- Preserving evidence and payment records
- Negotiating with the surety
- Filing enforcement actions when necessary
On public projects, being proactive is far less expensive than trying to repair a missed deadline later. Florida public construction projects offer strong payment protections, but only for those who know how to use them.
Because mechanic’s liens are unavailable on public property, payment bond claims become the primary tool for recovering unpaid contract balances. The Little Miller Act gives contractors, subcontractors, and suppliers a path to payment, but only if they follow the rules precisely.
If payment problems arise on a public project, time is not your friend. Reviewing the bond, preserving notice rights, and acting quickly can make the difference between full recovery and no recovery at all. Understanding your rights early is one of the smartest risk management decisions in construction.
John Caravella, Esq
John Caravella Esq., is a construction attorney and formerly practicing project architect at The Law Office of John Caravella, P.C., representing architects, engineers, contractors, subcontractors, and owners in all phases of contract preparation, litigation, and arbitration across New York and Florida. He also serves as an arbitrator to the American Arbitration Association Construction Industry Panel. Mr. Caravella can be reached by email: [email protected] or (631) 608-1346.
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Resources
Florida Statutes §255.05 – Bond of Contractor Constructing Public Buildings
https://www.leg.state.fl.us/
Levelset – Florida Bond Claim Guide
https://www.levelset.com/bond-claim/florida-bond-claim-faqs/
Levelset – How to Get Paid on Florida Public Projects
https://www.levelset.com/blog/get-paid-public-projects-florida/
Levelset – How to Make a Florida Payment Bond Claim
https://www.levelset.com/blog/how-to-make-bond-claim-florida/
American Bar Association – Miller Act Payment Bond Claims: The Basics
https://www.americanbar.org/groups/construction_industry/resources/under-construction/archive/miller-act-payment-bond-claims-basics/
SunRay Construction Solutions – Florida Payment Bond Claims on Public Projects
https://www.sunraynotice.com/blog/how-to-make-a-florida-payment-bond-claim-on-public-projects-and-best-practices