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Local contractors urge Hernando County to loosen insurance and procurement rules; commissioners plan policy review

3533906 · May 27, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Several local contractors and the Builders Association told the board that county insurance and bonding requirements price small local firms out of county work. Commissioners agreed to review procurement, bonding and insurance rules and scheduled staff follow-up.

Contractors and builders told the Hernando County Board of County Commissioners on May 27 that current county insurance, bonding and procurement requirements make it difficult for small, local firms to win work.

At the public comment section landowner/contractor Landon Lafferty of TriPeak Roof and Cliff Fikes of Traffic Roofing described a recent airport roof bid that local firms lost after they could not meet the county's certificate-of-insurance requirements. Fikes told the board the insurance levels requested for that project would have cost more than the job he was bidding. "What lost us the contract... it wasn't, you know, a large amount of money. It started off a new metal roof that... what actually took this was the million dollar coverage that we were not able to provide that allowed us to lose the contract," Fikes said.

Several builders told commissioners the county's requirements include high automobile liability and blanket additional‑insured endorsements, and that bonding thresholds for construction contracts (statutory payment and performance bonds for public construction over $200,000) create barriers for smaller firms. Commissioners acknowledged the complaints and directed staff to bring back procurement and insurance policy options for review. "If the state doesn't require that much, why are we?" Commissioner Laku asked during the discussion.

Board response and next steps: Commissioners said they would hold a formal review of the county's procurement rules, bonding and insurance requirements; County staff confirmed an item on the agenda will review procurement policies and that staff will meet the builders association for more input. Commissioner Rogers noted an upcoming staff-led procurement workshop (item N). No formal change to county code or insurance thresholds was adopted at the meeting; commissioners instead directed staff to analyze alternatives and publicize the procurement process to local firms.

Why it matters: Contractors argued that high insurance costs and bonding requirements have pushed work to out‑of‑county firms and increased prices on public projects. Commissioners agreed to study targeted reforms and outreach to spur local vendor participation while also protecting taxpayers from project risk.