3 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.

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Court Refuses to Enforce Non-Compete Agreement Against Contractor's Employee, Finding That Training Received Was Not a Legitimate Business Interest Deserving of Protection

While many contractors use non-compete agreements to try to keep employees from taking newly learned skills to a competitor, a new decision from Florida’s Fifth District Court of Appeal reveals that typical on-the-job training provided by a contractor, even in a specific trade, may not be a sufficient basis to enforce a non-compete agreement.

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New 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.

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An Update on Assignments of Benefits for Florida Contractors

While assignment of benefit agreements are quickly being phased out for insurance payments on construction projects, it’s important for contractors who plan to continue to use them while they can to know how courts have been applying Florida’s assignment of benefits statute and what contractors need to do to be compliant with those decisions.

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What Florida's New Insurance Statute (SB-2A) Means for Contractors

Earlier today, Florida’s legislators approved Senate Bill 2A and sent it to Governor Desantis for signature. The statute makes dramatic changes to Florida’s property insurance statutes, and, for contractors, signals the end of an era and a need for immediate changes in how those that perform work where insurance proceeds are involved run their business.

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Florida Board of Architecture Determines Venezuelan Architect Not Allowed to Use Term "Architect" on Website in Florida

In a concurring opinion, Florida’s First District Court of Appeal recently affirmed disciplinary action taken by Florida’s Board of Architecture against a Venezuelan architect who did not have a Florida architect’s license, but was nonetheless using the term “architect” on his website.

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Florida Court Finds That Price List Attached to Contract Does Not Satisfy "Written Estimate" Requirements of AOB Law

Last week Florida’s Fourth District Court of Appeal affirmed the dismissal of a lawsuit filed by a mold remediation contractor, finding that the standard price list attached to the contract failed to meet the requirements for a “written, itemized, per-unit cost estimate of the services to be performed” required under Florida’s assignment of benefits statute. The decision is another cautionary tale to contractors in the disaster recovery business about risks of non-compliance with the statute.

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Florida 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.

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Florida Relaxes Two Licensing Requirements to Help Hurricane Ian Recovery Efforts

On October 1st, Governor Desantis issued Emergency Order 2022-03, which temporarily alters the requirements of 489.113(3), Florida Statutes, and 489.117, Florida Statutes, to make it easier for roofing work to be performed by certain contractors that are already licensed by the state of Florida. The order also makes clear that the installation of non-permanent, emergency tarps falls within the exemptions to Florida’s contractor licensing statute. These provisions only apply to certain counties in Florida.

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Florida Court Reverses $105,000 Judgment in Favor of Site Development Contractor Over Scope of Work Issues

Florida’s Second District Court of Appeal recently reversed a $105,000 verdict in favor of a site development contractor, holding that the unpaid invoices did not arise under the contract. The case illustrates the importance of getting written change orders and choosing claims carefully, because, critically, there did not appear to be any dispute over the performance or quality of the work.

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Florida Court Affirms Dismissal of Company's Lawsuit For Failing to Comply with Assignment of Benefits Statute Despite Contract Language Disclaiming Application of Statute.

Recently Florida’s Second District Court of Appeal concluded that an assignment of benefits agreement executed in conjunction with indoor environmental and air quality testing services fit within Florida’s Assignment of Benefits Statute despite the services not directly involving physical protection, repairs, or restoration. This resulted in a dismissal of the air quality companies lawsuit against the the insurance carrier, and illustrates how broadly courts are interpreting 627.7152, Florida Statutes, and how careful restoration companies and their affiliates must be in complying with its terms.

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Court 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.

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Court Holds that General Contractor Cannot Delegate Duty to Ensure Compliance with Building Code to Subcontractors

Florida’s 18th Judicial Circuit Court recently granted a motion for summary judgment in favor of a homeowner’s association, concluding that a general contractor who constructed 314 town homes was liable for the building code violations of its subcontractors on the project and could not delegate responsibility directly to them.

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Court Holds Second Roofing Contractor Did Not Interfere with First Roofing Contractor's Contract By Submitting Bid for Same Work

At the end of July, the 11th Circuit Court of Appeals affirmed the dismissal of a roofing contractor’s complaint against another roofing contractor for allegedly interfering with its contract with a condominium association for roof repairs relating to Hurricane Irma. The case illustrates the importance of timing and advancing work related to insurance claims and should serve as a warning to those that regularly wait on insurance payments before beginning work.

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Court Refuses to Enforce Assignment of Benefits; Finds Contractor's Invoice Does Not Satisfy Itemized Estimate Requirements

Today, Florida’s Fourth District Court of Appeal affirmed the dismissal of a contractor’s breach of contract claim against an insurance carrier, finding that the contractor’s invoice attached to the assignment of benefits contract did not meet the requirements of Florida’s relatively new assignment of benefits statute. The ruling is a cautionary tale for contractors that rely on assignments of benefits to receive payment from insurance carriers to make sure their documentation strictly complies with the statutory requirements.

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Three New Statutes that Take Effect July 1, 2022

Last week, Florida’s governor signed multiple bills in addition to insurance and condominium inspection reform, which will take effect July 1, 2022. Three of these new statutes impact notices of commencement for certain HVAC projects, licensing and permitting requirements for fire alarm system projects, and allowing certain pool work without a license, but with the supervision of a licensed contractor.

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New Florida Statute Changes Building Code Requirements for Roof Repairs

Much of the attention today has been on Florida’s Governor Ron DeSantis’ signing of extensive property insurance law changes in Florida. But today the governor also signed Senate Bill 4. While SB 4 primarily deals with condominium inspections and safety, the bill also changes part of the state law that enacts and governs Florida’s Building Code and changes the amount of a roof that must be brought up to current codes in the event of damage and repair.

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Florida Court Clarifies When Contractor's Final Payment Affidavit Must be Delivered Pre-Suit

Florida’s construction lien laws require a contractor to serve a contractor’s final payment affidavit “at least five days” before filing a lawsuit to enforce the lien. A general contractor recently had its lien rights reinstated when a court clarified how the number of days between the service of the affidavit and the filing of the lawsuit should be calculated and reversed a dismissal of the contractor’s lawsuit.

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