Payment bond waivers are documents that allow construction participants to waive their bond claim rights in exchange for payment. General contractors or other higher-tier parties may require construction participants who have bond claim rights to first hand in a payment bond waiver before payment is released.
In Florida, there are legal provisions that are specific to making and signing payment bond waivers. Florida is one of the states that have a prescribed form for mechanics liens and payment bond waivers alike. However, using these forms is not mandatory. A person may enforce a customized payment bond waiver as long as such as it is substantially similar to the state-prescribed forms.
Unlike other states, Florida also has only two main types of payment bond waivers: progress payment waiver and final payment waiver. This guide answers frequently asked questions about the Florida Bond Waiver for Progress Payment.
When do you use a Florida Bond Waiver for Progress Payment?
As the name implies, the Florida Bond Waiver for Progress Payment must be used when you are waiving your bond claim rights for only a part of your full payment. This means that you are only receiving partial payment and your work on a project is still ongoing.
If your work on a project is completely finished and you are awaiting your final payment, consider signing a Florida Payment Bond Waiver for Final Payment.
Is the Florida Bond Waiver for Progress Payment a conditional waiver?
It is important to note that Florida does not necessarily distinguish between an unconditional payment bond waiver or a conditional payment bond waiver. The prescribed form for a Florida Bond Waiver for Progress Payment is therefore, by default, an unconditional payment bond waiver.
However, Florida Statutes § 713.235(4) states that “a person who executes a waiver in exchange for a check may condition the waiver on payment of the check.” This means that you can turn a Florida bond waiver for progress payment into a conditional waiver by adding a statement similar to the following:
“pursuant to Florida Statutes § 713.235(4), this waiver is conditional and effective only when the claimant receives actual payment for the amount specified on this form.”
By adding the statement above, your payment bond waiver becomes enforceable only when you actually receive the payment. Your bond claim rights are intact until you have your payment on hand.
How to fill out a Florida Bond Waiver for Progress Payment
The Florida Bond Waiver for Progress Payment must substantially be in the following form:
Filling out the Florida Bond Waiver for Progress Payment is as simple as writing the required details on the appropriate blanks:
1. $
This is the payment amount that you are receiving in exchange for signing this payment bond waiver.
2. Through date
This is the last day covered by the payment that you are receiving. Once the waiver is signed, your work on and before this date may no longer be subject to a bond claim.
3. Name of customer
This is the name of the party who hired you for the project.
4. Name of owner
This is the name of the owner of the property (or awarding government entity).
5. Description of the project
This is a brief description of the project location that is sufficient for identification (e.g. street address).
6. Sign date
This is the date when you sign the payment bond waiver.
7. By-line
This is your or your agent’s information, including name, address, and signature.
Remember that aside from adding the information required above, you may also include a condition statement on the Florida Bond Waiver in order to turn it into a conditional waiver. Adding such a statement is acceptable, so long as the rest of the form still follows the format as prescribed in Florida Statutes § 713.235.
Best practices before signing a Florida Bond Waiver for Progress Payment
1. Ensure that you are signing the correct waiver type
The Florida Bond Waiver for Progress Payment is, as the name implies, specifically made for parties receiving partial or progress payment. You should use this waiver only when your work on the project is still ongoing and you are expecting to receive more regular payments in the future.
2. Add a condition statement in your Florida bond waiver
You are strongly advised to add a conditional statement in your Florida payment bond waiver. A 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 for the amount specified on this form.”
When you add this statement in your Florida progress payment waiver, it will take effect only once you actually receive the payment. Without a conditional statement, you may risk revoking your bond claim rights without getting your compensation. Unfortunately, some clients in the business may bail on their payment responsibilities once they have a payment bond waiver on hand.
3. Make sure that your Florida progress payment waiver is still substantially similar to the prescribed format
While adding conditional statements is acceptable in Florida, the law states that a person may not use a completely different waiver form. Make sure that all the basic statements are still included and that you write all the required details, including the payment amount and the through date. It goes without saying that you must also verify the correctness and accuracy of the information that you write on your Florida payment bond waiver.
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