The Florida Legislature completed its 2001
Legislative Session. During the session, there were a few
changes made to the Florida Lien & Bond laws, which will have
an effect on each of us. Below, you'll find a brief list of the
changes, which have taken, or will be taking effect very soon.
CONSTRUCTION LIENS & BONDS
SB 428
(Chapter 2001-_____, LOF)
Effective July 1, 2001
Amends section 95.11, 255.05, 489.13, 713.01, 713.13,
713.18, 713.23, 713.245, and 725.06, Florida Statutes.
Provides for issuance of a notice of
noncompliance regarding unlicensed contracting for first
offense, and for an administrative fine of up to $10,000.00
for subsequent offenses. Authorized local governments to
collect 30% of fines under certain circumstances. Directs
DBPR to create a web page regarding unlicensed
contractors. Provides that remedies are cumulative.
Provides that the statute of limitations for actions
on payment bonds are governed by sections 255.05 and
713.23, rather than the five-year limitations period in section
95.11. Clarifies criteria for performance bonds, and revises
provisions relating to notice of nonpayment for certain labor,
materials, and supplies.
Includes temporary help firms in the definitions of "subcontractor," and "sub-subcontractor," to
clarify that the
unlicensed contractor provisions only apply where a license
is required. Deletes the authorization for fax numbers in
notices of commencement and repeals authorization for
service by facsimile effective July 1, 2002. Revises
requirements for service of notice by registered or certified
mail. Includes unpaid finance charges in written notice of
nonpayment of payment bond. Provides additional
conditions for payment of conditional payment bond.
Requires that indemnification agreements contain
a monetary limit, which bears a reasonable relationship to
contract, but not less than $1,000,000.00 per occurrence.
Limits the reach of indemnification to acts committed by the
indemnitor, those operating within the control of the
indemnitor, and the indemnitee and officers, directors,
agents and employees; to except certain acts from
indemnification. Provides that design professional contracts
with public agencies may not include provisions whereby the
design professional indemnifies or holds the public agency
harmless, and repeals contradictory language.
CONSTRUCTION Prompt Payment
SB 870 (Chapter 2001-_____, LOF)
Effective July 1, 2001
Amends sections 218.72, 218.73, 218.735, 218.74,
218.75, and 218.76. Florida Statutes regarding payment on
public construction projects.
Redefines the terms, "proper invoice" "local
government entity" (to include school districts and special taxing
districts) "purchase" and "construction services." Defines
"payment request" and "agent" for purposes of the Florida
Prompt
Payment Act. Provides for calculation of timely payment for non-
construction services; revises provisions for timely payment for
purchases of construction services to distinguish whether an
agent is involved and whether the request is rejected, provides
for disputed payment requests, for payment on undisputed
payment requests; revises procedures for calculating payment
due dates; revises provisions regarding mandatory interest to
include providers of construction services, regarding improper
invoices and dispute resolution; and provides for recovery of fees
and costs, including appeals, where payment was withheld
without a reasonable basis.
While this is a somewhat detailed review of the
changes scheduled to take effect, I hope that each of you will find
this both beneficial and educational.
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