When a payment bond is posted on a public project, construction participants can file a claim against the bond in order to recover payment when a dispute arises. However, it is common practice for construction participants to waive their bond claim rights in exchange for payment.
States like Florida have strict rules on what a payment bond waiver must contain. Construction participants are strongly advised to make sure they understand the contents of a payment bond waiver before they sign away their bond rights.
There are two main types of payment bond waivers in Florida: one for progress payment and another for final payment. This guide discusses everything you need to know about the Florida Bond Waiver for Final Payment.
When do you use a Florida Bond Waiver for Final Payment?
The Florida Payment Bond Waiver for Final Payment is used when you have received or are expecting to receive your final or full payment for a project. This implies that your work on a project is done and you will no longer receive any payment in the future other than the one related to this specific waiver.
If your work on a project is still ongoing and you are not yet receiving your last paycheck, consider signing a Florida Payment Bond Waiver for Progress Payment.
Is the Florida Bond Waiver for Final Payment a conditional waiver?
Florida does not impose a strict distinction between a conditional payment bond waiver and an unconditional one. However, the Bond Waiver for Final Payment form as described in Florida laws does not have a statement that specifically mentions a conditional clause.
We can, therefore, surmise that the Florida Bond Waiver for Final Payment form is an unconditional payment bond waiver by default.
However, it is also written under Florida Statutes § 713.235(4) that “a person who executes a waiver in exchange for a check may condition the waiver on payment of the check.” This provision implies that a Florida waiver for final payment may be turned into a conditional waiver by adding a condition statement.
The condition statement may be similar to the following:
“Pursuant to Florida Statutes § 713.235(4), this waiver is conditional and effective only when the claimant receives actual payment of the amount specified on this form.”
When you add the statement above, you include a conditional provision that makes your payment bond waiver enforceable only when you have received your payment. This means that you will still have your bond claim rights intact with regard to any payment dispute that may arise.
How to fill out a Florida Bond Waiver for Final Payment
It is very important that you follow the following form when you prepare your Florida Bond Waiver for Final Payment:
When you are filling out a Florida Bond Waiver for Final Payment form, all you need to do is provide the following pieces of information in the appropriate blanks:
1. $
This is the amount of the payment that you are waiving. Note that since this is a final payment form, this amount should correspond to your final paycheck for the project.
2. Name of customer
This is the name of your client or the party who hired you for the project.
3. Name of owner
This is the name of the property owner or awarding government entity.
4. Description of the project
This is a brief description of the project location. For Florida waivers, a street address will suffice for this portion.
5. Sign date
This is the date when you sign the payment bond waiver.
6. By-line
This is your or your agent’s information, including their name, address, and signature.
Keep in mind that your Florida Bond Waiver for Final Payment must substantially be in the form as prescribed under Florida Statutes § 713.235. However, it is equally important to take note that you are allowed to add a conditional statement on the form to turn it into a conditional waiver. Adding a simple conditional statement can save you from waiving your bond rights unconditionally and ending up losing your payment altogether.
Best practices before signing a Florida Bond Waiver for Final Payment
1. Sign this waiver only when you are receiving your final payment
You should be very careful and make sure that you are signing the correct payment bond waiver in Florida. The Florida Bond Waiver for Final Payment is specifically used when your work on a project is done and you are about to get paid in full. If you are still expecting regular payments in the future, you should consider signing a Florida Bond Waiver for Progress Payment instead.
2. Make sure to add a conditional statement in your Florida payment bond waiver
A Florida payment bond waiver is by default an unconditional waiver. This means that as you sign the form, your payment bond rights are extinguished. By adding a conditional statement, you keep your bond claim rights intact until you receive payment. The conditional statement may be as simple as the following:
“Pursuant to Florida Statutes § 713.235(4), this waiver is conditional and effective only when the claimant receives actual payment of the amount specified on this form.”
Note that while you may modify the Florida payment bond waiver form by adding a conditional statement, the form must still be substantially the same as what is written under Florida Statutes § 713.235.
3. Ensure that you have the payment on hand if signing an unconditional payment bond waiver
If your Florida Bond Waiver for Final Payment does not have any conditional statement, the next best thing you must do is to verify that you have the payment on hand before signing the document. A signed cheque or a credit card transaction does not count as payment until the money is cleared and approved in your bank. Make sure that your payment is ready for your disposal before you waive your payment bond claim rights.
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