FRO Bond

In the majority of cases, a FRO is either the owner or another type of officer who primarily presides over the financial responsibility of a construction company. In the State of Florida, FROs require licensing to obtain this bond, which is needed in order to meet full compliance with state laws. The purpose of this bond is to ensure that the officers who carry financial responsibility adhere to all applicable and required laws, have business practices which are conducted in conformity with the rules of the Department of Business and Professional Regulation (DBPR), and ensure the keeping of records, the making of reports, and the payment of any funds which may be required by the State, pursuant to Rule 61G4-15.0021, Florida Administrative Code.

It protects both Florida’s licensing entities and the general public from issues such as non-payment of any due fees and costs. The bond also serves as a guarantee that the FRO will promptly provide all required paperwork to the relevant authorities. As with other types of surety bonds, FRO bonds comprise a three-party contract — the principal is the financial responsibility officer; the obligee is the state authority that provides the license and that requires the bond; the surety is the entity that provides the bond as well as financial backing.

• A FRO Bond is a $100,000 surety bond ($50,000 for individuals who were registered prior to Feb. 1, 2007) that is required to be posted by an officer of a construction company in order to be licensed as the FRO for the company. The Financially Responsible Officer is fully responsible for all financial aspects of the business organization and may not be designated as the Primary Qualifying Agent.    
• The designated financially responsible officer shall furnish:
  • evidence of the financial responsibility
  • credit and business reputation of himself/herself or the business organization he/she desires to qualify, as determined appropriate by the Construction Industry Licensing Board (CILB)
• This surety bond is needed when the Qualifying Agent (licensed contractor using their license to qualify a business), as named by the construction company’s license, is not also the Financially Responsible Officer. In other words, the FRO is typically the owner (or majority owner) of the construction company and the Primary Qualifying Agent is usually the license holder that qualifies the company. Although the individual FRO is named as the Principal of the surety bond, the construction company is given responsibilities in the form and executes the bond along with the Principal. 
  • Whenever there is a change in FRO, a new application and surety bond must be filed.