Though many construction professionals are generally familiar with Florida’s lien law, there is a little-known and little-used provision within the lien statutes that can prove to be a game-changer for subcontractors (or sub-subcontractors) when used correctly and in the proper factual circumstances.
Florida Construction Lien law is designed to protect laborers and materialmen with the greatest protection that justice and equity afford. Tuttle/White Constructors, Inc. v. Hughes Supply, Inc. But just how should materialmen/ material suppliers (a “supplier”) go about protecting themselves under the Florida lien and bond law to better ensure payment? While the supplier certainly has payment rights under its contract for the materials, it is always better to have additional mechanisms to get paid. The focus of this post is to discuss ways in which a supplier can better protect its rights under the Florida Construction Lien Law (“Lien Law”).
A payment bond provided by the general contractor is a valuable asset to any subcontractor or supplier on that project. Payment is assured by the bond—a subcontractor or supplier will get paid even if the general contractor doesn’t make payment. While there are certain hurdles to perfecting your bond rights that get a lot of attention, such as the Notice to Owner Requirement, there is one possibly critical question that has been largely ignored: What is the effective duration of the payment bond? In other words, does the work have to be provided during a certain time period in order for payment to be covered by the bond?
Often leaders in organizations view a document retention policy as simply a written document that a company creates or obtains and then saves on its server with every other document the company has created or obtained and now retains. Best practices dictate that an effective document retention policy be seen as […]
The Legislature deems it necessary in the interest of the public health, safety, and welfare to regulate the construction industry in Florida. As a result, the Florida Legislature enacted Chapter 489, Florida Statutes. The general policy in Florida is that construction work needs to be performed by an appropriate licensed contractor unless exempt from licensure under 489.103, Florida Statutes. In order to obtain initial licensure for construction work in Florida, the applicant must demonstrate the requisite knowledge, skill and experience, in addition to good moral character and financial stability.
Contractors who perform excavation work in Florida must be aware of the requirements set forth in Chapter 556 of the Florida Statutes, known as the Underground Facility Damage Prevention and Safety Act (“Act”). Failing to follow the procedures set forth in the Act can result in civil and criminal penalties, including monetary damages. This post focuses on some of the requirements of the Act related to excavation work that is not beneath the waters of the State of Florida.
The Legislature deems it necessary in the interest of the public health, safety, and welfare to regulate the construction industry in Florida. As a result, the Florida Legislature enacted Chapter 489, Florida Statutes. The general policy in Florida is that construction work needs to be performed by an appropriate licensed contractor unless exempt from licensure under 489.103, Florida Statutes. For example, no construction license is required for Federal or municipal work, public utilities, roads, bridges, minor or inconsequential work (“handyman”) and small repairs effectuated by a real estate professional.
The Florida Homeowners’ Construction Recovery Fund was created under Chapter 489, Florida Statutes as a separate account in the Professional Regulation Trust Fund. The recovery fund is funded pursuant to s. 468.631. Its purpose is to provide relief for Florida homeowners who have been harmed by Florida licensed contractors. For more information on the creation and operation of the Recovery Fund, please see my blog post of September 2014. This post will discuss recent legislative changes to the Recovery Fund which expands homeowner recovery to Division II contractors.
As the construction industry continues to boom, joint ventures have become increasingly common for contractors. Entering into a joint venture with another company can have enormous upside: it can provide a contractor with access to a new market, a broader geographic reach, new building techniques or knowledge, access to new and evolving equipment, and additional financing and bonding capacity. Further, a joint venture instantly increases working capital, manpower, equipment, specialized expertise and talent, and other resources that can be committed to a large project. Lastly, by allocating risk associated with a project among two or more contractors, each contractor’s risk is reduced.
Unlicensed contracting is a huge problem in Florida, and the Florida Legislature and Courts have fashioned a host of penalties. See Penalties for Unlicensed Contracting in Florida. However, according to a recent opinion from Florida’s Fifth District Court of Appeals, the loss of a “statute of limitations defense” is not […]