A recent Third District Court of Appeal decision reiterates the level of detail required in a written, itemized, per-unit cost estimate that must be provided when using an assignment of benefits. While the use of assignments of benefits for disaster recovery work has essentially been eliminated for future policies, there are still many claims out there arising under previously issued policies and many assignments of benefits still in place.
Read more3 Changes Contractors Working in Florida Need to be Aware of for 2023
2023 is poised to be a year full of changes for contractors working in Florida, regardless of the type of work you are performing. There are important changes to laws affecting contracting and licensing that take effect in 2023 or complete implementation in 2023. Here are the three most critical changes contractors should be aware of and what they can do to prepare for them.
Read moreFlorida Court Finds That Price List Attached to Contract Does Not Satisfy "Written Estimate" Requirements of AOB Law
Last week Florida’s Fourth District Court of Appeal affirmed the dismissal of a lawsuit filed by a mold remediation contractor, finding that the standard price list attached to the contract failed to meet the requirements for a “written, itemized, per-unit cost estimate of the services to be performed” required under Florida’s assignment of benefits statute. The decision is another cautionary tale to contractors in the disaster recovery business about risks of non-compliance with the statute.
Read moreFlorida Court Affirms Dismissal of Company's Lawsuit For Failing to Comply with Assignment of Benefits Statute Despite Contract Language Disclaiming Application of Statute.
Recently Florida’s Second District Court of Appeal concluded that an assignment of benefits agreement executed in conjunction with indoor environmental and air quality testing services fit within Florida’s Assignment of Benefits Statute despite the services not directly involving physical protection, repairs, or restoration. This resulted in a dismissal of the air quality companies lawsuit against the the insurance carrier, and illustrates how broadly courts are interpreting 627.7152, Florida Statutes, and how careful restoration companies and their affiliates must be in complying with its terms.
Read moreThree New Statutes that Take Effect July 1, 2022
Last week, Florida’s governor signed multiple bills in addition to insurance and condominium inspection reform, which will take effect July 1, 2022. Three of these new statutes impact notices of commencement for certain HVAC projects, licensing and permitting requirements for fire alarm system projects, and allowing certain pool work without a license, but with the supervision of a licensed contractor.
Read moreNew Florida Statute Changes Building Code Requirements for Roof Repairs
Much of the attention today has been on Florida’s Governor Ron DeSantis’ signing of extensive property insurance law changes in Florida. But today the governor also signed Senate Bill 4. While SB 4 primarily deals with condominium inspections and safety, the bill also changes part of the state law that enacts and governs Florida’s Building Code and changes the amount of a roof that must be brought up to current codes in the event of damage and repair.
Read moreRecent Court Decision Addresses Whether Failure to Obtain Local Licenses Renders Contracts Unenforceable
A recent decision from Florida’s Fourth District Court of Appeal addressed the issue of whether a subcontractor that failed to obtain local licenses required by a county ordinance was allowed to litigate claims for work that required those licenses. The case serves as another cautionary tale about the importance of complying with state licensing, local licensing, and contract requirements, and how all three can combine to make construction projects a complex compliance environment for contractors.
Read moreCourt Reverses Ruling In Favor of Landlord and Holds That Contractor's Lien for Tenant Improvements is Valid
In December, Florida’s Third District Court of Appeal reversed a judgment in favor of a landlord holding that a contractor’s lien could not attach to the real property being improvement by a tenant of the landlord. The reversal allowed the contractor’s lien enforcement claim to proceed.
Read moreNew Court Decision Requires Clerks to Record Liens When Document and Fees Received, Not When They Get To it Later.
Yesterday, Florida’s First District Court of Appeal affirmed a trial court ruling requiring a clerk to backdate the recording date of a construction lien to the date it was received and the recording costs paid, not the date the clerk actually got around to recording the lien. This decision will have a huge impact on recording liens in Florida and may help some contractors who have timely delivered liens to the clerk of court, only to have them still be recorded late.
Read moreNew Statute Phases Out Local Licenses by 2023
A new statute that went into effect on July 1, 2021, eliminates nearly all local contractor licenses by 2023 and makes clear that only certain types of contractors are required to have licenses. The new statute is intended to reduce government regulation of certain non-structural types of contractors and opens the door to many trades being able to work without a license in Florida.
Read moreFederal Judge Stops Enforcement of Certain Part of New Senate Bill 76 Temporarily
You may have heard that over the weekend, a federal judge in Tampa issued an injunction halting the enforcement of the recently enacted SB 76, which penalizes certain conduct on construction projects, especially roofing projects, where insurance proceeds will be paid. While this is true, the ruling is relatively narrow, and so I wanted to share the specifics, because certain portions of the statute are still in effect.
Read moreRevisions to Florida's Prompt Payment Law Increase Penalties for Homeowners and Contractors who Withhold Undisputedly Owed Funds
Since 1988, Section 713.346, Florida Statutes, has provided relief for contractors or subcontractors who have been unpaid for more than 30 days where there is no legitimate dispute that the funds are owed. But effective July 1, 2021, the penalties for failing to timely make undisputed payments increased significantly, making the failure the “misapplication of construction funds,” and subjecting the guilty party to civil and criminal penalties. Click to learn more about this new statute.
Read moreNew Statute Limits Liability for Engineers and Architects Voluntarily Participating in Emergency Response Activities
Earlier this week, Governor DeSantis signed into law a statute that provides a full limitation of liability for any licensed engineer or architect providing engineering or architectural services in response to an emergency and at the direction of a government emergency management agency. This statute also applies to out of state engineers or architects who are rendering help as part of a mobile support unit from that state.
Read moreNew Statute Will Dramatically Impact Roofing Contractors and Contractors That Receive Insurance Proceeds
The new statute, Florida Senate Bill 76, was passed by the Florida legislature in its most recent session and is expected to be signed into law by Governor Desantis, with an effective date of July 1, 2021. The statute adds new requirements and contract disclosures for roofing contractors and greatly limits the way all contractors who work with homeowner insurance companies can market themselves and obtain work.
Read moreLicensed in Another State? Here's How to Use That to Become Licensed in Florida!
In July 2020, Florida changed its contractor licensing statute to make it easier for contractors who have been licensed in other states for at least 10 years to obtain a Florida contractor’s license without having to take a licensing exam. While Florida has not entered into any formal reciprocity agreements with other states, we do finally have guidance on exactly how to apply for a Florida’s contractor’s license using your existing license from another state
Read moreCourt Dismisses Restoration Company's Lawsuit based on Florida's New Assignment of Benefits Statute
Recently, a restoration contractor in Broward County, Florida had its lawsuit dismissed for failure to include an itemized statement, required to be attached to its assignment of benefits under Florida’s new assignment of benefits statute found in 627.7152, Florida Statutes.
Read moreMiami Court Decides that Contractor Forfeits Lien for Failing to Include State and Local Contract Disclosures
Recently a Miami-Dade court entered judgment in favor of a property owner and dismissed a general contractor’s lien claim because the general contractor failed to include disclosures required under Florida state law and Miami-Dade county codes. The case is a reminder to periodically check your contracts to make sure they are compliant with the laws where you do business!
Read moreAn Update on Construction License Reciprocity in Florida
In July of this year, Florida enacted the Occupational Freedom and Opportunity Act, which included language requiring many of Florida’s professions, including contractors, to stake steps towards advancing reciprocity with other states. Recently, the Construction Industry Licensing Board published a short statement regarding states and licenses that currently meet Florida’s requirements for reciprocity.
Read moreContractors Are Heavily Regulated, Licensed Professionals -- So Act Like It!
When comparing Florida contractors to other professions in the state, only medical professionals are more heavily regulated. General contractors are more regulated than most professions, from architects to veterinarians, and the industry should recognize this and adapt.
Read morePrompt Payment Statutes to the Rescue
Payment issues can arise on many jobs. Everything goes smoothly at first, the work is done correctly and then suddenly, payment is delayed. A problem promised to be worked out quickly turns into weeks or months of delays, in some cases through no fault of the company trying to be paid. Disputes with other contractors, managers, project owners or lenders can cause delays, and while the parties try to work things out, the uninvolved and unpaid parties are left twisting in the wind.
Read more