Guide - Florida Surety Bonds

Florida Statute 713.23 – Payment Bond Guide

Florida Statute 713.23 – Payment Bond Guide (Contractors & Surety)

What 713.23 Covers

Section 713.23 of the Florida Statutes governs payment bonds on bonded construction projects, and how those bonds interact with lienor rights and required notices. The high‑level sequence is simple: record the Notice of Commencement with the bond, serve early notice if you’re not in privity, serve a sworn Notice of Nonpayment if unpaid, and file suit on time.

Record before work starts

Owner/GC

The Notice of Commencement (NOC) should be recorded before commencement and include a copy of the payment bond to exempt the owner. The bond must be at least the original contract amount and issued by an authorized surety.

Early notice preserves rights

Lienors not in privity (subs/suppliers)

Serve a Notice to Contractor (can be combined with a Notice to Owner) within 45 days of first furnishing to look to the bond for payment. If the bond wasn’t recorded before start, you may serve within 45 days after receiving a copy of the bond.

If unpaid, act fast

Lienors

Serve a sworn Notice of Nonpayment on the contractor and a copy to the surety no later than 90 days after last furnishing. If still unpaid, sue the contractor or surety within 1 year of last furnishing (or 60 days after a Notice of Contest is served).

Practical tip: Calendar three dates the day you start furnishing — the 45‑day notice window, the 90‑day nonpayment window, and the 1‑year suit deadline. Certificates of occupancy or substantial completion do not change these clocks.

Step‑by‑Step Flowchart (Decision Tree)

Follow this sequence to preserve and enforce rights under a 713.23 payment bond.

Did contractor record NOC + Bond?

Check clerk’s records; the NOC should have the bond attached.

Yes → Serve Notice to Contractor within 45 days

May be combined as “Notice to Owner/Notice to Contractor.”

No → You may serve the notice when you receive the bond

If the bond was not recorded before start, 45‑day window runs from when you’re served a copy.

Did lienor get paid?

If yes, flow ends. If no, continue.

No → Serve sworn Notice of Nonpayment within 90 days

Serve on contractor and copy to surety. Period runs from your last furnishing (or last day rental equipment was on site and available).

If still unpaid → File suit on the bond within 1 year

Measured from your last furnishing; CO or substantial completion do not control the deadline.

Was a Notice of Contest served?

Contractor (or its attorney) may record/serve one after your nonpayment notice.

Yes → You have 60 days to file suit

If you do not sue within 60 days after service of the Notice of Contest, the claim is extinguished.

Jump to statutory forms

Timelines & Triggers (At a Glance)

Bonded Project Timeline

Clocks run from your actual last furnishing of labor/materials; not from CO or substantial completion.

Before Start
NOC + Bond

Day 1–45
Notice to Contractor

By Day 90
Notice of Nonpayment

By 1 Year
Suit on Bond

Contest Shortens Deadline

If the contractor/attorney records and serves a Notice of Contest of Claim Against Payment Bond, your time to sue is shortened to 60 days from the date of service.

Keep your service address current on your notices to ensure you receive a contest notice.

Who Does What

Owner / Contractor (GC)

Record NOC with the payment bond attached before commencement.
Furnish a true copy of the bond to any lienor who demands it (cost of reproduction).
Contractor/attorney may record and serve a Notice of Contest after a lienor’s nonpayment notice.

Subcontractors & Suppliers (Lienors not in privity)

Serve Notice to Contractor within 45 days of first furnishing (or within 45 days of receiving the bond if the bond wasn’t recorded before start).
If unpaid, serve a sworn Notice of Nonpayment within 90 days of last furnishing; copy the surety.
File suit on the bond within 1 year of last furnishing (or within 60 days if contested).

Surety

Bond must be issued by an authorized surety; protects lienors supplying labor, services, or materials.
Surety is not discharged by contractor–owner contract modifications (liability capped at penal sum).
No advance waiver by lienors of the right to sue on the bond.

Required Notices & Recordings

Record

Notice of Commencement with Payment Bond attached (county where the property lies).
Notice of Bond (to transfer a recorded claim of lien to the bond), then serve it with a copy of the bond to the lienor and record proof of service.

Serve

Notice to Contractor (for lienors not in privity) within 45 days of first furnishing.
Notice of Nonpayment, under oath, within 90 days of last furnishing; serve on GC and copy the surety.
Notice of Contest of Claim Against Payment Bond (GC/attorney) to shorten suit time to 60 days.

Minor mistakes that don’t prejudice the contractor/surety will not defeat an otherwise valid bond claim; however, fraudulent nonpayment notices forfeit rights.

Statutory Forms (Copy‑Ready)

These are the statute’s “substantially the following form” templates. Fill in project‑specific details. Consider having forms reviewed by counsel.

Notice to Contractor (may be combined with Notice to Owner)

NOTICE TO CONTRACTOR

To: (name and address of contractor)

The undersigned hereby informs you that he or she has furnished or is furnishing services or materials as follows:

(general description of services or materials) for the improvement of the real property identified as (property description) under an order given by (lienor’s customer).

This notice is to inform you that the undersigned intends to look to the contractor’s bond to secure payment for the furnishing of materials or services for the improvement of the real property.

(name of lienor)

(signature of lienor or lienor’s representative)

(date)

(lienor’s address)

Notice of Nonpayment (sworn)

NOTICE OF NONPAYMENT

To: (name of contractor and address)
    (name of surety and address)

The undersigned lienor notifies you that:

1. The lienor has furnished (describe labor, services, or materials) for the improvement of the real property identified as (property description). The corresponding amount unpaid to date is $____, of which $____ is unpaid retainage.

2. The lienor has been paid to date the amount of $____ for previously furnishing (describe labor, services, or materials) for this improvement.

3. The lienor expects to furnish (describe labor, services, or materials) for this improvement in the future (if known), and the corresponding amount expected to become due is $____ (if known).

I declare that I have read the foregoing Notice of Nonpayment and that the facts stated in it are true to the best of my knowledge and belief.

DATED on _________, ____.

(signature and address of lienor)

STATE OF FLORIDA
COUNTY OF __________

The foregoing instrument was sworn to (or affirmed) and subscribed before me by means of ☐ physical presence or ☐ online notarization this ___ day of ______, (year), by (name of signatory).

(Signature of Notary Public - State of Florida)
(Print, Type, or Stamp Commissioned Name of Notary Public)
Personally Known ____ OR Produced Identification ____
Type of Identification Produced __________

Notice of Contest of Claim Against Payment Bond (contractor/attorney)

NOTICE OF CONTEST OF CLAIM AGAINST PAYMENT BOND

To: (Name and address of lienor)

You are notified that the undersigned contests your notice of nonpayment, dated ____, ____, and served on the undersigned on ____, ____, and that the time within which you may file suit to enforce your claim is limited to 60 days after the date of service of this notice.

DATED on ____, ____.

Signed: (Contractor or Attorney)

Notice of Bond (to transfer a recorded lien to the bond)

NOTICE OF BOND

To: (Name and Address of Lienor)

You are notified that the claim of lien filed by you on ____, ____, and recorded in Official Records Book ___ at page ___ of the public records of ____ County, Florida, is secured by a bond, a copy being attached.

Signed: (Name of person recording notice)

[Verification and certificate of service per statute]

Payment Bond (statutory form)

PAYMENT BOND

BY THIS BOND We, ______, as Principal, and ______, a corporation, as Surety, are bound to ______, herein called Owner, in the sum of $______ for the payment of which we bind ourselves, our heirs, personal representatives, successors, and assigns, jointly and severally.

THE CONDITION OF THIS BOND is that if Principal:

1. Promptly makes payments to all lienors supplying labor, material, and supplies used directly or indirectly by Principal in the prosecution of the work provided in the contract dated ____, ____, between Principal and Owner for construction of ______, the contract being made a part of this bond by reference; and

2. Pays Owner all loss, damage, expenses, costs, and attorney’s fees, including appellate proceedings, that Owner sustains because of default by Principal under paragraph 1. of this bond;

then this bond is void; otherwise, it remains in full force.

Any changes in or under the contract documents and compliance or noncompliance with formalities connected with the contract or with the changes do not affect Surety’s obligation under this bond.

DATED on ____, ____.

(Principal) (SEAL)
(Surety’s name)
By ____________
As Attorney in Fact

Quick FAQs

Does retainage require a nonpayment notice?

No. Failure to receive retainage of ≤10% of the value furnished is not considered a nonpayment requiring the 90‑day notice. Still, include retainage amounts when you do serve the notice.

What is “last furnishing”?

It’s the last day you actually furnished labor, services, or materials (or for rental equipment, the last day equipment was on site and available). CO or substantial completion are not the measuring events.

Can a bond restrict who is protected or change the deadlines?

No. A payment bond may not narrow protected classes, change venue, shorten/extend duration, or add extra conditions beyond the statute; such clauses are unenforceable.

What if there’s a mistake in my Notice of Nonpayment?

Non‑prejudicial negligent mistakes don’t defeat a valid claim. But a fraudulent notice (willful exaggeration or gross negligence) forfeits bond rights.

Primary Sources

Accessed September 24, 2025. Verify the latest statutory text before relying on this summary.

Get started with your Surety Bond.

For start-ups, design-build, small and large contractors, all we do is bonding. Let us know how we can help you.

Florida Statute 713.23 – Payment Bond Guide

Florida Statute 713.23 — Payment Bond Guide

What 713.23 Covers

Record before work starts

Early notice preserves rights

If unpaid, act fast

Step‑by‑Step Flowchart (Decision Tree)

Timelines & Triggers (At a Glance)

Bonded Project Timeline

Contest Shortens Deadline

Who Does What

Owner / Contractor (GC)

Subcontractors & Suppliers (Lienors not in privity)

Surety

Required Notices & Recordings

Record

Serve

Statutory Forms (Copy‑Ready)

Quick FAQs

Does retainage require a nonpayment notice?

What is “last furnishing”?

Can a bond restrict who is protected or change the deadlines?

What if there’s a mistake in my Notice of Nonpayment?

Primary Sources

Get started with your Surety Bond.

Existing Clients

Florida Surety Bonds

Contractor Resource Center (Links)