Florida Contractor Practice Exam

Under a performance bond on a subcontract, any suit must be instituted within _____ year(s) of the date of substantial completion.

1. 1

2. 2

3. 3

4. 4

The correct answer is: 2

In the context of performance bonds related to construction contracts, substantial completion is a significant milestone that indicates the project is sufficiently complete for the owner to use it for its intended purpose. When dealing with performance bonds on subcontracts, the time frame to initiate any legal action regarding claims under the bond is typically governed by state law or the specific terms of the bond itself. In Florida, the statute of limitations for bringing a suit related to a performance bond is generally limited to two years from the date of substantial completion. This two-year period allows parties involved in the contract to address any outstanding claims, ensuring that issues are resolved within a reasonable time frame while also providing clarity to all parties. Understanding this timeframe is crucial for contractors and subcontractors alike as it impacts their ability to secure payment for services rendered or to address any breaches that may arise during the course of the project. By adhering to this two-year period, all parties can effectively manage their claims and ensure adherence to the timelines established in their contractual agreements.