What is required for a payment bond to exempt an owner under s. 713.23?

A payment bond must be in at least the amount of the original contract price to exempt an owner under s. 713.23. This requirement ensures that the bond is sufficient to cover all potential claims for payment arising from labor and materials supplied during the project. By having a bond that reflects the original contract price, it provides protection to subcontractors and suppliers, ensuring they can be compensated for their contributions, should any payment issues arise.

This requirement serves to enhance the security of those who might file a claim against the bond, making it a vital element for protecting the financial interests of those involved in the project. Failing to meet this amount could lead to the bond being considered inadequate, and therefore, it would not provide the intended protective benefit to the owner under the statutory exemption. This guarantee also encourages compliance with payment obligations throughout the duration of the project.