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 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 moreHappy to Have Been Quoted by Redfin.com on the Importance of Obtaining Permits When Remodeling
Redfin.com recently posted an article on 7 DIY Home Repair Mistakes to Avoid Before Selling Your House, and I was fortunate enough to be quoted when describing why sellers should always pull permits for pre-sale improvements.
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 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.
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.
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