Blogs & Resources

A payment bond provided by the general contractor is a valuable asset to any subcontractor or supplier on that project. Payment is assured by the bond—a subcontractor or supplier will get paid even if the general contractor doesn’t make payment. While there are certain hurdles to perfecting your bond rights that get a lot of attention, such as the Notice to Owner Requirement, there is one possibly critical question that has been largely ignored: What is the effective duration of the payment bond? In other words, does the work have to be provided during a certain time period in order for payment to be covered by the bond?

This is the first of three follow up blogs to our earlier publication Assignment for the Benefit of Creditors: General Overview. This blog explores ABC’s lack of statutory automatic stay and whether there is a functional and practical equivalent. The next blog will discuss whether a creditor may file a claim after the statutory 120-day deadline. The third blog will examine whether a creditor may file a claim of fraudulent transfer against the estate.

Many vendors have had the unfortunate experience of a customer filing for bankruptcy. If it hasn’t happened to you yet, it probably will at some point in the future. There are certain steps a vendor should (or must) take to protect itself and maximize its opportunity to collect any debts owed by the customer. Vendors that take advantage of these protections can maximize recoveries, better preserve their positions in their dealings with the debtor, and avoid pitfalls inherent in the bankruptcy process. Vendors, and their attorneys, should use this checklist and take immediate action when a customer files for bankruptcy.

An involuntary bankruptcy case is typically commenced by a petition joined by at least three petitioning creditors. However, an involuntary petition may be filed by a single petitioning creditor if the debtor has 11 or fewer “qualified” creditors. This is often called the “numerosity” requirement. The Bankruptcy Code, in Section 303(b)(2), expressly defines which creditors count in the numerosity requirement. In determining whether there are 11 or fewer creditors, certain creditors are ignored, including (a) any employees of the debtor who are also creditors, (4) any “insiders” of the debtor who are creditors, and (3) any creditors who received voidable transfers under §§ 544, 545, 547, 548, or 724(a) of the Bankruptcy Code.

Unlicensed contracting is a huge problem in Florida, and the Florida Legislature and Courts have fashioned a host of penalties.  See Penalties for Unlicensed Contracting in Florida.  However, according to a recent opinion from Florida’s Fifth District Court of Appeals, the loss of a “statute of limitations defense” is not […]

If you are considering bankruptcy for your insolvent business, an Assignment for the Benefit of Creditors (“ABC”) might be your answer. An ABC is a less expensive, quicker, quieter, and simpler alternative to traditional bankruptcy. An ABC is a state law procedure utilized to liquidate a failed, insolvent, or no longer viable business. Fla. Stat. § 727.101. An ABC is normally much simpler and usually less expensive than a comparable bankruptcy proceeding. This savings means larger payouts to both unsecured and secured creditors. This blog provides a general overview of the ABC process, and highlights a few benefits of ABC as compared to a Chapter 7 bankruptcy.

One of a construction material supplier’s biggest concerns is making sure they will get paid. There are a few things a supplier can do to ensure they get paid on a construction project. One of the most important steps a supplier should take is preserve its lien rights under Florida’s Construction Lien Law, Section 713.001-.37, Florida Statutes. The purpose of the Florida Construction Lien Law is to protect construction material suppliers from nonpayment. The Lien Law should become your best friend. You should know it well. If done right, a supplier can almost guarantee that it will get paid in full by using the Lien Law. However, strict compliance with the Lien Law is required and it is laced with traps for the unwary. Many suppliers fail to perfect their lien rights properly and find themselves unable to get paid. Don’t let that happen to you. This blawg focuses on preserving your lien rights through the proper use of lien releases. Don’t give away more of your rights than you have to.

One of a construction material supplier’s biggest concerns is making sure they will get paid. There are a few things a supplier can do to ensure they get paid on a construction project. One of the most important steps a supplier should take is preserve its lien rights under Florida’s Construction Lien Law, Section 713.001-.37, Florida Statutes. The purpose of the Florida Construction Lien Law is to protect construction material suppliers from nonpayment. The Lien Law should become your best friend. You should know it well. If done right, a supplier can almost guarantee that they will get paid in full by using the Lien Law. However, strict compliance with the Lien Law is required and it is laced with traps for the unwary. Many suppliers fail to perfect their lien rights properly and find themselves unable to get paid. Don’t let that happen to you. This blog focuses on one of the initial steps a supplier must take to preserve its lien rights: properly and timely serve a Notice to Owner.

Warranties are a valuable part of a construction contract. A multi-year warranty is more valuable than a 1-year warranty. A contractor’s offer to provide a multi-year warranty may induce an owner to select that contractor and enter into the contract. Often, multi-year warranties are included in the written contract, or separate written warranty policies are provided at the end of the project. However, not all construction contracts are written, and contractors don’t always provide a written policy at the end of a project. This raises the question: are oral multi-year warranties enforceable? They may not be. The Statute of Frauds may bar their enforcement.

The Florida Legislature’s 2015 Regular Session is complete. This blog addresses the bills, which passed, that we think have the greatest impact on the construction industry. We provide the highlights for each bill, in no particular order: