The proposed statute modifies 489.147, Florida Statutes, which was enacted in 2021 and governs certain prohibited practices for roofing and other contractors operating on insurance-funded projects or in emergency areas. If the statute becomes law, homeowners would be able to cancel contracts without penalty within 10 days of signing under certain circumstances.
Read moreProposed Statute Would Allow Homeowners to Cancel Roofing Contracts Within 10 Days of Signing
The proposed statute modifies 489.147, Florida Statutes, which was enacted in 2021 and governs certain prohibited practices for roofing and other contractors operating on insurance-funded projects or in emergency areas. If enacted, homeowners would be able to cancel contracts without penalty within 10 days of signing under certain circumstances.
Read moreCourt Reverses Dismissal of Two Claims by General Contractor Against Subcontractor Finding They Were Not Barred by Credit Agreement Between the Parties
Florida’s Fourth District Court of Appeal partially reversed a dismissal with prejudice of all of a general contractor’s claims against a subcontractor, finding that the credit agreement between the parties did not preclude claims for breach of an implied in fact contract or negligence. The case is an important reminder that not only do the terms of contracts matter, but so do when they are signed, who signs them, and how they are referred to in pleadings.
Read moreContractor's Lawsuit Dismissed for Failing to Provide Contractor's Payment Affidavit Prior to Filing Suit
The contract between the parties required that the contractor provide the final payment affidavit described in 713.06, Florida Statutes, before final payment was due. This case illustrates the importance of complying with contractual requirements pre-suit, and the consequences they can have, including increased litigation costs.
Read moreCourt Refuses to Enforce Lien Where It Was Not Clear That Person Entering Into Contract was Agent of Property Owner
The contract at issue was entered into between the son of the property owner and a contractor, and the court ultimately refused to enforce a lien against the property owner due to conflicting evidence about whether the son was actually acting as an agent of the property owner for the purposes of the contract.
Read moreCourt Determines County Entitled to Dismissal of Claims by General Contractor Where Contractor Failed to Comply with Pre-Suit Dispute Resolution Procedures
Florida’s Fifth District Court of Appeal found that the contract between the parties required the general contractor to exhaust county administrative dispute resolution procedures prior to filing a lawsuit and could potentially result in a waiver of claims not presented through the administrative dispute resolution process.
Read moreCourt Enforces Personal Guaranty in Favor of Rental Company, Despite Company Name Changes
The decision resulted in a $42,816.68 judgment against the individual owner of the company, who had signed a personal guaranty with the rental equipment company years before when he started his company.
Read moreNew Court Decision in Favor of HVAC Contractor Illustrates Importance of Clear Scopes of Work and Contract Terms
The decision by Florida’s Fourth District Court of Appeal reversed a judgment in favor of a property manager, and rests on language excluding certain existing systems from the work to be performed.
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 moreNew Court Decision Clarifies That Preferred Contractors Named in Insurance Policies Can Hire Subcontractors Where Required by Licensing Laws
A recent Fourth District Court of Appeal decision clarifies that a specific contractor named to perform repairs in an insurance policy also includes necessary subcontractors, at least where the contractor’s license requires them to subcontract a portion of their work. The case provides clear interpretation of Chapter 489, Florida Statutes, and clarifies that contractors should be allowed to hire required subcontractors even where the contract does not expressly allow it.
Read moreFlorida Court Affirms $525,000 Judgment In Favor of Unit Owner After Trial Over Cost-Plus Billing Issues
In a really thorough and well-written opinion, Florida’s Third District Court of Appeal affirmed a $525,000 judgment in favor of a condominium unit owner arising from dispute over billings in a cost plus contract. The case is a great example with lots of good warnings and takeaways for those in the construction industry of how broad ranging construction disputes can become, the issues they often turn on, and how important experts can be to the outcome of the case.
Read moreCourt Concludes Acceptance of Partial Payment Sent With Report Indicating it was Final Barred Future Claims for Payment
Florida’s Fourth District Court of Appeal recently concluded that construction manager who accepted a payment for less than the total of his final invoices that was accompanied by a reconciliation report offering it as final payment was barred under both the language of the contract and common law from seeking any further payment. The case is a cautionary tale for contractors dealing with payment issues at the end of any project.
Read moreNew Case Exposes the Risks of Relying on Text Messages to Alter or Create Contracts
In a recent real estate case, a court dismissed a lawsuit by a buyer to require the seller to sell him the property because the court found that the agreements between the parties contained in text messages and emails were unenforceable. This raises a significant concern over the enforceability of changes or amendments to construction contracts made by text or email, especially ones that will take a long time to perform.
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 Affirms $638,000 Award for Improper Stoppage of Construction Contract by County
Last week, Florida’s Second District Court of Appeal affirmed a $638,794.10 award for damages in favor of a utility contract, and reversed an award of $177,750 in liquidated damages in favor of the county that hired it. The damages awarded arose from an improper stoppage of work and delay in construction by the county.
Read moreCourt Reverses $28,190.00 Judgement Against Flooring Company Owner Over Improper Corporate Veil Piercing
Yesterday a Florida court reversed a judgment entered against the owner of a flooring company individually because even though he had commingled personal and business funds, he had not engaged in conduct that warranted setting aside the company and imposing liability on him personally.
Read moreCourt Determines Subcontractor Not Entitled to Retainage or Change Orders Due to Failure to Follow Contract and Act Within Deadlines
A recent court decision involving a public construction project for the Miami-Dade County School District confirms that change orders must conform to the terms of the contract to be enforceable and that the deadline to bring claims relating to a public project is one year from completion.
Read moreBlockchain: Automating Construction Contract Performance and Legal Notifications
In my most recent article for Construction Executive I discuss what blockchain is and explore how it can (and likely will) be used in the future to automate the performance and administration of construction contracts and how it could be used to automate legal notices. The possibilities are endless!
Read moreCourt Finds That Purchaser of Home Cannot Sue Contractor Who Made Improvements for Seller
Recently, the 11th Circuit Court in Miami-Dade County dismissed a claim filed by the purchaser of a home for negligent construction against a contractor who performed work for the seller. The basis for the decision was the lack of any damages to anything other than the house, meaning there were no personal injuries or damages to other property. Though only a trial court order, the case discusses several recent appellate decisions and provides a good window into how trial courts are applying new cases in a trial setting.
Read moreHow to Manage Problems With Cost Increases and Material Shortages
Over the last year, material prices have steadily increased, and it looks like they will continue to do so for the foreseeable future. More recently, materials are also becoming increasingly scarce, with everything from drywall mud, to paint, to lumber. Earlier this year I shared an article about using price escalation clauses to account for material price increases, but I wanted provide some more direct information on how to manage both cost increases and delays. The best way to do this, and in some cases the only way to do this, is through your contract.
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