Florida Contractor Practice Exam

What typically triggers a claim against a performance bond?

1. Court orders

2. Contractor default

3. Project delays

4. Disagreement over project scope

The correct answer is: Contractor default

A performance bond is a surety bond issued to ensure that a contractor completes a project in accordance with the contract terms. Typically, the bond provides a financial guarantee to the project owner that the work will be done as agreed. When a contractor fails to meet their contractual obligations—such as not completing the project, abandoning the work, or not fulfilling the specifications outlined in the contract—this situation is referred to as contractor default. In these cases, the project owner can file a claim against the performance bond to recover financial losses or to ensure that the project is completed by another party. The other options, while they may be related to issues that arise in the course of a project, do not directly trigger claims against a performance bond. For instance, court orders might compel actions but do not directly involve the bond. Project delays may occur for various reasons that do not necessarily mean default by the contractor. Disagreements over project scope might lead to disputes but do not automatically justify a claim against the bond unless they result in default. Therefore, contractor default is the primary trigger for claiming against a performance bond, as it directly implicates the condition that the bond is designed to protect against.