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.
A key consideration in developing a litigation strategy is whether or not insurance coverage applies to the causes of action at issue, which is important for both parties. For the plaintiff, coverage can mean that he has a greater chance of collecting on his judgment if it is going to be paid from insurance proceeds. For the insured defendant, insurance coverage can provide reassurance that, if any monetary judgment is awarded against him, he will not have to satisfy it from his own assets. Equally important, his policy will also probably stipulate that the insurer will provide him with an attorney and legal defense for any claims covered by the policy.
No individual or business owner wants to be sued. But, that unfortunate situation is made even worse when news of being sued is followed by learning that, unbeknownst to you, the lawsuit was actually filed some time ago and you have had a “default” entered against you. Of the many questions that would surely race to your mind, the first are likely to be: what is a default? and how do I address the default?
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 […]
The Legislature deems it necessary in the interest of the public health, safety, and welfare to regulate the construction industry. As a result, the Florida Legislature enacted Chapter 489, Florida Statutes. From that statutory authority, the Construction Industry Licensing Board was created and along with the Department of Business and Professional Regulation, promulgated 61G4 of the Florida Administrative Code to further set forth rules and standards that govern the construction industry in Florida.
In Florida, performing construction work carries many technical requirements in order to properly perform the work. The technical requirements also apply to the contractor, subcontractor and material supplier who wants to protect its lien rights in the event the Owner does not pay. The first step in preserving subcontractor and material supplier lien rights is serving a Notice to Owner. The purpose of the Notice to Owner is literally contained within its own title. The purpose is to inform the Owner that the subcontractor (who does not have a contract with the owner) is providing labor, services, or materials for the improvement of the property. The Notice to Owner also lets the Owner know that the subcontractor has a right to lien the property if not paid and that the Owner could pay twice if it makes payment to the Contractor without getting a release from the subcontractor. The failure of the subcontractor to timely service a Notice to Owner is, however, a complete defense to enforcement of a construction lien. § 713.06(2)(a), Fla. Stat.
Many new home purchases also include structural warranties, which, as the name suggests, provide warranty coverage for problems with the home’s structure, including walls, columns, framing, and roofing. These warranties often include arbitration clauses, which can have consequences for the homeowner’s legal strategy if he has to file suit to enforce his warranty claims.