Proposed House Bill 331 contains multiple changes to 255.05 Florida Statutes, and 337.18 Florida Statutes, both of which apply to public construction projects. Most of the changes relate to notices of non-payment, notices of contest, bonds, and attorneys’ fees.
House Bill 331 is a sweeping bill that impacts many statutes that govern contractor payments for both public and private projects. This article only deals with the parts addressing public projects. You can click here to read about the provisions impacting private projects.
Under the proposed bill, 255.05(2)(a), Florida Statutes, would be amended as follows:
Language added to require clerk to serve copy of notice of contest of claim of bond on the lienor and the contractor or contractor’s attorney.
Language added to allow claimant to serve a notice of intent to look to the bond for protection 45 days after claimant is served with a copy of the bond if the bond is not recorded before commencement of work or before recommencement of work after a default
Clarifies that notice of nonpayment must be served on contractor, with a copy to the surety, by claimants not in privity with contractor.
Notice of nonpayment must be under oath.
For rental equipment, clarifies that this must be done no later than 90 days after the equipment is last on the site of the improvement.
Adds that either a court or arbitrator can determine the amount of attorneys’ fees to which the prevailing party under a claim is entitled.
Updates notary certificate on notice of non-payment to allow online notarization
You can click here to view a full copy of the amended statute.
Section 255.05(7), Florida Statutes, is amended as follows:
In lieu of the bond required by this section, a contractor may file with the state, county, city, or other political authority an alternative form of security in the form of cash; a money order; a certified check; a cashier's check; an irrevocable letter of credit, or a corporate bond, note, or debenture as authorized in s. 625.317 security of a type listed in part II of chapter 625. Any such alternative form of security is shall be for the same purpose and be subject to the same conditions as those applicable to the bond required by this section. The determination of the value of an alternative form of security shall be made by the appropriate state, county, city, or other political subdivision shall determine the value of an alternative form of security.
Section 255.05(12) is amended to require service under the statute to be done in accordance with 713.18, Florida Statutes, unless otherwise indicated.
House Bill 331 also updates 337.18, Florida Statutes, to be consistent with the changes to 255.05, Florida Statutes.
Again, you can click here to download a full copy of the proposed statute.