Construction Industry Legal Blog

Are you a contractor or subcontractor who has taken on a job, agreed to have it completed by a certain date, and failed to meet that deadline due to an unforeseeable delay? How about an owner that has been promised completion of a project by a specific date that was not met? If they have done much business, everyone involved in the construction industry that fits within these categories should have answered in the affirmative. Today, virtually every project has a tight budget and an aggressive schedule, and delays seem inevitable. Under Florida law, when unexpected events occur that delay a project, damages are often awarded to compensate for the impact of the delay. Damages are not recoverable, however, if the agreement indicates only an estimated time of completion or provides no liability for delays.[1] These damages include, but are not limited to, compensating for: increased material costs, increased labor costs due to increases in pay rates, increased labor costs due to loss of productivity, increased overhead, interest on unpaid funds, loss of bonding capacity, loss of profit on other work that could been undertaken but for the delayed job and costs of preparing the delay claim. Delay claims have proliferated in recent years, and are currently one of the largest categories of claims participants in the construction process routinely make. This Blog post will provide a general overview of establishing that a delay occurred, and is the first in a multi-part series explaining delay damages and their potential recovery.

When negotiating construction contracts for residential or commercial projects, there are several key provisions to include and that require careful consideration. While this list is not exhaustive, parties to construction contracts must consider the provisions for scope of work, order of precedence, notice of claims, indemnification, insurance and dispute resolution.

Are you a commercial property owner or a contractor that builds commercial projects in Florida? Or maybe you are an architect or engineer that designs commercial projects in Florida? If so, have you ever wondered who is liable for personal injuries caused by defective construction on commercial property? Generally, the answer lies within the Slavin Doctrine and its application to the facts at hand.

If you are planning to hire a contractor in Florida to perform construction work, you must first do your homework. Many times, owners will hire a contractor without confirming the contractor is properly licensed and without knowing who is actually performing the work. Below are a few key issues to understand and consider before hiring anyone to perform construction work for you.

Contingent payment provisions, often referred to as “pay if paid” or “pay when paid” provisions, are commonplace in subcontracts and lower tiered contracts. An often overlooked question that should be asked is, “Are they enforceable?” As is true with most questions in the law, the answer is, “It depends.” This Blog will focus on the enforceability of contingent payment provisions.

The Florida Construction Lien Law is an intricate machine full of requirements and traps for the unwary. The notice of termination of notice of commencement (Notice of Termination) is no exception. For the construction project’s owner, the Notice of Termination is a sworn document from the owner. For the lienor, the Notice of Termination is a sign that something is happening on the project and, therefore, the lienor must act quickly to preserve the priority of its lien for amounts owed.

Parties often cry “fraud” when defending against a construction lien recorded on their real property. However, the fraudulent lien card is sometimes overplayed and oftentimes lacks merit, considering the requisite proof to establish a fraudulent lien. The consequences of a fraudulent lien are significant – it is a complete defense to lien enforcement and can result in recovery of punitive damages and compensatory damages against the lienor. Sharrard v. Ligon, 892 So. 2d 1092 (Fla. 2nd DCA 2004). It can also result in the recovery of attorneys’ fees and costs against the lienor. Delta Painting, Inc. v. Baumann, 710 So. 2d 663 (Fla. 3rd DCA 1998). § 713.31, Fla. Stat. The filing of a fraudulent lien is also a third-degree felony. § 713.31(3), Fla. Stat.

As credit begins to loosen, cash begins to flow and the building community starts to recover, we are in a unique position to advise both contractors and banks as to legal issues pertaining to loan origination due to our practice focuses in banking and construction. Contractors often ask us to reveal the secrets of how to be viewed as the best candidate for a loan or credit to further expand their business.

  The revitalization of Downtown Jacksonville has been at the top of the business, civic, and political agenda for the last fifty years, but with the recent creation of the Downtown Investment Authority (DIA) Board, the effort to revitalize Jacksonville’s Downtown may finally be gaining momentum.  To appreciate why the […]

Many times the party with the most leverage in contract negotiations forces the “weaker” party to hold it harmless or indemnify it for anything that goes wrong in connection with the contract, even problems caused by the “stronger” party’s own negligence. Indemnity is a risk shifting mechanism and essentially comes in two forms: common law and contractual. This article focuses on contractual indemnity provisions in construction contacts.