This bill amends Florida Statutes to enhance the Department of Transportation's (DOT) authority regarding payments to subcontractors and the management of surety bonds in construction contracts. Specifically, it allows the DOT to make direct payments to first-tier subcontractors under certain conditions, such as when the contractor has not requested payment for at least six months, there is a binding subcontract in place, the subcontractor has performed unpaid work, and there is no documented dispute between the contractor and subcontractor. Additionally, any amounts paid to the subcontractor will be deducted from what is owed to the contractor.

Furthermore, the bill introduces a requirement for the DOT and surety to enter into a takeover agreement if a contractor is declared in default. This agreement mandates that the surety's completion contractor must meet the original contract's prequalification requirements and adhere to the contract's procedures for handling defaults and payments to subcontractors. The bill is set to take effect on July 1, 2026.