On September 18, 2020, Florida Governor Ron DeSantis signed House Bill 101, an act relating to public construction, into law. This new law amends Section 218.735, Florida Statutes (the “Local Government Prompt Payment Act”) and Section 255.078, Florida Statutes (the “Florida Prompt Payment Act”), by reducing the maximum retainage rate […]
Contractors cannot file mechanic’s liens on public construction projects, such as work on military bases, courthouses, or government owned buildings. Instead, the Federal Miller Act, 40 U.S.C. § 3131-3134, fills in this gap by protecting certain levels of subcontractors and material suppliers from general contractors who fail to pay them […]
When can a construction CGL insurer finally breathe easy? The answer can be found in Fla. Stat. § 95.11(3)(c), Florida’s statute of limitations and repose for construction defects. The statute of limitations prohibits construction defect claims 4 years after the claim accrues. For not-readily-observable defects (“latent defects”), the claim does not […]
Part 1 of this series provided an overview of Florida’s Consumer Collections Practices Act (FCCPA) and explained why it is imperative for all business owners to be aware of, and understand, the FCCPA. This article explores Section 559.77’s bona fide error defense and how businesses can be prepared to defend […]
All businesses in the state of Florida need to be familiar with Florida’s Consumer Collection Practices Act (“FCCPA”). The FCCPA is found at Sections 559.55-559.785 of the Florida Statutes. The FCCPA is intended to protect consumers and is intentionally unfair to creditors. See §559.552, Fla. Stat. (2019); Kelly v. Duggan, […]
Delays are sometimes unavoidable on construction projects. When delays occur, they can often result in increased costs to contractors and subcontractors, and may bring exposure to owner claims for liquidated damages for delay. Certain types of delays, such as those caused by circumstances beyond the contractor’s control, may be deemed […]
Construction projects are fragile and issues often arise when the project in practice doesn’t match the project in planning. Resolving these issues has become more standardized with the enactment of Florida Statutes Chapter 558, but the chapter may create as much litigation for insurance companies as it hopes to alleviate. […]
Whether you are an owner, contractor, subcontractor, or supplier, payment problems on a construction project can have dire consequences. To better protect against those payment problems, and depending on the type of construction project, Florida law gives certain persons the right to look to a payment bond when they have […]
The standard form contract documents developed and published by the American Institute of Architects (“AIA”) are a fundamental part of the construction industry landscape that have been widely used for more than a century. Importantly, in 2017, the AIA Documents Committee released updated versions of the A201 family of documents […]
Winding up a construction project and transitioning occupancy to the building owner (i.e. project closeout) can be a harrowing ordeal for an owner with little to no construction experience. Even for experienced owners, Project closeout can be a challenge and is often mishandled, leading to eleventh-hour emergencies, cost overruns, and […]