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.
Read moreUpcoming Webinar: Revising Construction Payment Provisions: Addressing Change Orders, Extra or Nonconforming Work, and Other Costs
I am pleased to announce that I will be speaking in an upcoming Strafford live video webinar, "Revising Construction Payment Provisions: Addressing Change Orders, Extra or Nonconforming Work, and Other Costs" scheduled for Wednesday, May 12, 1:00pm-2:30pm EDT.
Read moreCourt Rules That Changes Made at Site Meeting Could Result in New Contract Between Landscaper, Contract, and Property Owner.
A recent court decision confirms that despite contract clauses precluding unwritten changes, a site visit between a contractor, property owner, and subcontractor could have resulted in a new, second contract between the parties, entitling the subcontractor to payment for additional work. This is a great case that highlights the impact a common site meeting can have on the payment rights of everyone involved.
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 moreCourt Rules Subcontractor Entitled to Payment for Extra Work Due to Ambiguities in Scope of Work Provision
A case decided in Florida last week saw a court side with a site development contractor over a $33.000 dispute based on whether the original contract included certain demolition and replacement of portions of a parking lot due to an imprecise description of work. The court’s ruling does a great job of walking through many of the consideration general contractors and subcontractors need to take into account when starting a project.
Read moreFlorida Proposed Statute - Many Changes to Florida's Lien and Bond Statutes for Public and Private Projects
A proposed statute filed last week would make many changes to parts of Chapters 255, 337, and 713, Florida Statutes. While some of the proposed changes merely codify how contractors have traditionally done things, some of the proposed changes create new, technical requirements to for construction liens, bonds, notices of commencement, and notices of termination.
Read moreGeneral Contractor May Be Held Liable for Job Site Injury to Subcontractor's Employee
Yesterday, the Second District Court of Appeal reversed judgment in favor of a general contractor, finding that the general contractor was liable for an electrical subcontractors injuries suffered when he fell into an open drain on a second floor stair landing. The case illustrates the importance of job site safety and the specific items a general contractor must take into account when keeping a job site safe.
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 morePublic Adjusters who Receive a Portion of an Insured's Appraisal Award Cannot Serve as an Appraiser for that Award
In a decision released earlier this week, the Second District Court of Appeal held that a public adjuster who has an interest in a percentage of an insured’s appraisal award or represents an insured in the appraisal process cannot also serve as a “disinterested appraiser” under the policy’s appraisal provision.
Read moreSubsequent Purchaser Not Required to Arbitrate Claims Over Construction Defects
In a decision released yesterday, the Fourth District Court of Appeal held that a second purchaser of a new construction home was not required to arbitrate its claims for construction defects, despite receiving an assignment of the homebuilder’s warranty from the original purchaser of the home.
Read moreFlorida Proposed Statute - Changes to Florida Construction Materials Mining Activities Administrative Recovery Act
A proposed statute filed yesterday would limit the amount of ground vibration allowable in Miami-Dade County for construction materials mining activities and eliminate certain administrative dispute resolution avenues for claims against companies involved in construction materials mining activities.
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 moreFlorida Proposed Statute - Increased Penalties for Failing to Pay Undisputed Amounts to Contractors
A proposed Florida statute would make it a crime for a person, firm, or corporation to intentionally fail to make payment of undisputed amounts under a construction contract after receiving funds from a third party to make that payment.
Read moreFlorida Proposed Statute - Limitation on Building Design Restrictions
Under a proposed statute, Florida’s legislature would limit a local municipality’s ability to restrict exterior design elements of homes.
Read moreFlorida Proposed Statute - No License Required for Certain Supervised Pool Work
Under a proposed statute, Florida’s legislature would allow certain unlicensed individuals to perform residential and commercial pool improvements as long as they were supervised by a licensed pool contractor.
Read moreFlorida Proposed Statute - Enhanced Penalties for Unlicensed Contracting
Under a proposed statute, Florida’s legislature would increase criminal penalties for unlicensed contracting and make the penalty dependent on the size of the contract.
Read moreFlorida Proposed Statute - Removal of Local Licensing Requirements
Under a proposed statute, Florida’s legislature would remove local licensing requirements by 2023 and prohibit local licensing requirements for things like painting, flooring, cabinetry, and more.
Read moreResidential Contractor Ordered to Pay $56,731.00 in Restitution for Failing to Timely Pull Permits
A residential contractor was ordered to pay a $5,000.00 fine and $56,731.00 for failing to pull a permit within 30 days as required by Florida statute. While there were other factors involved, the only offense charged by the DBPR was failure to timely pull a permit, showing how quickly and badly things can spiral once licensing issues arise.
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.
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