Construction Bond - City of Orlando, Florida

Construction Bond is a legal document that was released by the Economic Development Department - City of Orlando, Florida - a government authority operating within Florida. The form may be used strictly within City of Orlando.

FAQ

Q: What is a construction bond?A: A construction bond is a type of surety bond that guarantees the completion of a construction project and protects the project owner from financial loss if the contractor fails to fulfill their obligations.

Q: Why does the City of Orlando require a construction bond?A: The City of Orlando requires a construction bond to ensure that construction projects are completed according to the terms and conditions of the contract and to protect the interests of the city and its residents.

Q: Who is responsible for obtaining the construction bond?A: The contractor or construction company is responsible for obtaining the construction bond.

Q: How much does a construction bond in the City of Orlando cost?A: The cost of a construction bond in the City of Orlando can vary depending on the size and complexity of the project, but it is typically a percentage (usually between 1-3%) of the total contract amount.

Q: Are there any specific requirements for the construction bond in Orlando?A: Yes, the City of Orlando may have specific requirements for the construction bond, such as minimum coverage amounts and approved bonding companies. Contractors should consult the city's regulations and guidelines for more information.

Q: What happens if a contractor fails to fulfill their obligations?A: If a contractor fails to fulfill their obligations, the construction bond can be used to compensate the project owner for any financial losses or to hire a new contractor to complete the project.

Q: Can a contractor get their construction bond refunded?A: In most cases, the construction bond is not refundable. It is in place to provide financial protection and is typically only released once the project is successfully completed and all obligations have been met.

Q: Are there alternatives to a construction bond?A: Yes, there are alternatives to a construction bond, such as letters of credit or cash deposits, but these options may have their own requirements and limitations. It is best to consult with the City of Orlando for specific alternatives.