The subcontractor had obtained a $7,119.00 judgment in its favor for extra work it claimed to have been implicitly requested by the property owner, which was outside the scope of the subcontractor’s contract with the general contractor on the project.
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 moreRecent Court Order Discharges $253,584.00 Lien That Was Prepared by Third-Party Rather Than Employee or Attorney
The trial court order entered late last year discharged a $253,584.00 lien because it failed to meet several requirements of Florida’s Construction Lien law, including being prepared by either the lienor or its attorney. The case is a cautionary tale of the risks of using third-party services to prepare construction liens.
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 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 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 moreFlorida Court Reinstates $4.8M Lien for Tenant Improvements on Public Property
A case decided last week illustrates the scope of liens for tenant improvements and recognizes that contractors can have liens for tenant improvements even where the land where the improvements are made is owned by a county or city.
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 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 moreFlorida Appellate Court Affirms $174,377.38 Construction Lien Claim In Favor of Interior Designer
Earlier this year, Florida’s Third District Court of Appeal affirmed a final judgment in favor of an interior designer who served as an owner’s representative and oversaw renovations at the owner’s condominium while he was out of the country. The appellate decision, and underlying trial court order, do a good job of showing how designers can distinguish themselves from contractors for the purpose of complying with licensing and construction lien laws.
Read moreRecent Court Decision Confirms Measure of Damages in Construction Cases and Awards Homeowner $40,850 Over Failure to Pull Proper Permits
Last week Florida’s Fourth District Court of Appeal issued an opinion the described and confirmed the ways breach of contract damages can be calculated in construction disputes and allowed termination of a contract for failure to pull proper permits. This case serves as a good reminder to do things the right way and has some great discussion of the type of information contractors should expect to provide in court over a payment dispute.
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 moreProtect the Bottom Line With a Price Escalation Clause
One of the major headlines in 2020, in construction, that did not directly involve the coronavirus, was the dramatic increase of lumber prices across the country. From April to September 2020 alone, general construction lumber prices increased 130%. Specific types of dimensional lumber increased as much as 158%. And while prices corrected slightly in the beginning of the fourth quarter of 2020, at the end of the year, prices were back on the move upward.
Read moreRecent Appellate Decision Reverses Trial Court to Award Attorneys' Fees to Subcontractor on $290,000.00 Claim
A case decided last week by Florida’s Second District Court of Appeal illustrates that attorneys’ fees are not guaranteed to any party in construction litigation and that payments by insurance carriers can be taken into account in making a determination as to who is entitled to an award of attorneys’ fees. Given how quickly attorneys’ fees can add up, this is a significant issue contractors should be aware of.
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 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 moreCourts Hold that Disaster Recovery Contractor's Assignment of Benefits is not Unconstitutional
Many construction companies, especially those involved in disaster recovery or mitigation use assignments of benefits (AOB) to ensure payment by the homeowner’s insurance company. While there are many court decisions interpreting AOBs, and a new AOB statute to evaluate, two recent court decisions recognize that AOBs do not violate certain provisions of the Florida Constitution.
Read moreBe Careful How You Try to Get Paid from Homeowners
Payment disputes between contractors and homeowners are not uncommon. But in Florida, how you attempt to collect payment from a homeowner could be subject to Florida’s Consumer Collection Practices Act, which can turn a simple attempt to get paid into a nightmare.
Read moreElectrician Loses Lien For Failing to Comply with Chapter 713, Florida Statutes
Florida’s Construction Lien laws are a complex web of requirements to establish and maintain a lien on property to secure payment for work you’ve done. Successfully check all the boxes, and you have a powerful tool to ensure you are paid. But make a misstep early in the process—or fail to keep up with the requirements—and your lien can vanish! Recently, an electrician lost its lien for failing to follow through on the lien law requirements through the end.
Read moreRecent Trial Court Decision Confirms Narrow Application of Florida's Private Undisputed Payment Statute
Earlier this year in Bartlett Fiber Inc. v. Optical Telecommunications, Inc, a trial court in Miami-Dade County granted summary judgment in favor of an integrated low-voltage contractor based on a Florida statute requiring certain undisputed amounts to be paid to subcontractors once paid for. The decision confirms the narrow application of section 713.346, Florida Statutes.
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