Florida Contractor Practice Exam 2026 - Free Contractor License Practice Questions and Study Guide

For public construction projects, statutory bonds are often required to ensure that contractors comply with legal requirements and protect the interests of the public, project owners, and subcontractors. These bonds are mandated by state or federal laws and typically include payment bonds and performance bonds.

Payment bonds guarantee that all suppliers and subcontractors will be paid for their work on the project, which helps to prevent liens against the property. Performance bonds ensure that the contractor will complete the project according to the contractual obligations, including quality and timeline, thereby providing a safety net for project owners. The requirement for statutory bonds reflects the government’s intent to safeguard public funds and ensure that projects are completed as promised.

This structure helps to mitigate risks associated with public construction, thus promoting more secure and responsible contracting practices.