WESLEY MANAGEMENT COMPANY – Jupiter, FL
09/15/2020 – Notices Required per FL Statute for Construction Projects
NOTICES REQUIRED PER FL STATUTE FOR CONSTRUCTION PROJECTS
The State of Florida requires certain contract provisions required by FL Statute.
CONSTRUCTION LIEN NOTICE
Chapter 713 requires any direct contract exceeding $2,500, between an owner and a contractor, related to improvements to real property consisting of single or multiple family dwellings up to and including four units, must contain the following provision printed in no less than 12-point, capitalized, boldfaced type: on the front page of the contract or on a separate page, signed by the owner and dated:
ACCORDING TO FLORIDA’S CONSTRUCTION LIEN LAW (SECTIONS 713.001-713.37, FLORIDA STATUTES), THOSE WHO WORK ON YOUR PROPERTY OR PROVIDE MATERIALS AND SERVICES AND ARE NOT PAID IN FULL HAVE A RIGHT TO ENFORCE THEIR CLAIM FOR PAYMENT AGAINST YOUR PROPERTY. THIS CLAIM IS KNOWN AS A CONSTRUCTION LIEN. IF YOUR CONTRACTOR OR A SUBCONTRACTOR FAILS TO PAY SUBCONTRACTORS, SUB-SUBCONTRACTORS, OR MATERIAL SUPPLIERS, THOSE PEOPLE WHO ARE OWED MONEY MAY LOOK TO YOUR PROPERTY FOR PAYMENT, EVEN IF YOU HAVE ALREADY PAID YOUR CONTRACTOR IN FULL. IF YOU FAIL TO PAY YOUR CONTRACTOR, YOUR CONTRACTOR MAY ALSO HAVE A LIEN ON YOUR PROPERTY. THIS MEANS IF A LIEN IS FILED YOUR PROPERTY COULD BE SOLD AGAINST YOUR WILL TO PAY FOR LABOR, MATERIALS, OR OTHER SERVICES THAT YOUR CONTRACTOR OR A SUBCONTRACTOR MAY HAVE FAILED TO PAY. TO PROTECT YOURSELF, YOU SHOULD STIPULATE IN THIS CONTRACT THAT BEFORE ANY PAYMENT IS MADE, YOUR CONTRACTOR IS REQUIRED TO PROVIDE YOU WITH A WRITTEN RELEASE OF LIEN FROM ANY PERSON OR COMPANY THAT HAS PROVIDED TO YOU A “NOTICE TO OWNER.” FLORIDA’S CONSTRUCTION LIEN LAW IS COMPLEX, AND IT IS RECOMMENDED THAT YOU CONSULT AN ATTORNEY.
If the contract is written, the notice must be in the contract document. If the contract is oral or implied, the notice must be provided in a document referencing the contract.
The statute does not specify a remedy for failure to include the warning. Previously, Owners used the failure to include the warning as a defense to lien enforcement by the contractor. However, since 2007, the failure to include the warning is a defense to lien only if the owner can show the lack of warning had an adverse effect upon the owner.
FLORIDA HOMEOWNERS RECOVERY FUND
Section 489 created a Homeowners’ Construction Recovery Fund to compensate homeowners who have uncollectable judgments against their contractor. Thus requiring contracts for repair, restoration, improvement, or construction to residential real property over $2,500, must contain a written statement explaining the owner’s rights under the recovery fund. The written statement must be in the following form:
FLORIDA HOMEOWNERS’ CONSTRUCTION RECOVERY FUND
PAYMENT MAY BE AVAILABLE FROM THE FLORIDA HOMEOWNERS’ CONSTRUCTION RECOVERY FUND IF YOU LOSE MONEY ON A PROJECT PERFORMED UNDER CONTRACT, WHERE THE LOSS RESULTS FROM SPECIFIED VIOLATIONS OF FLORIDA LAW BY A LICENSED CONTRACTOR. FOR INFORMATION ABOUT THE RECOVERY FUND AND FILING A CLAIM, CONTACT THE FLORIDA CONSTRUCTION INDUSTRY LICENSING BOARD AT THE FOLLOWING TELEPHONE NUMBER AND ADDRESS: The statement shall be immediately followed by the board’s address and telephone number as established by board rule.
The statute prescribes certain penalties against a contractor who fails to include the notice. For a first violation, the contractor may be fined up to $500, and after that, a contractor may be fined $1,000 per violation.
CONSTRUCTION DEFECTS
Chapter 558 requires an owner to take certain steps prior to suing a contractor for construction defects, for the purpose of resolving the dispute. Thus requiring contracts for improvement of real property entered into between an owner and a contractor must contain substantially the following notice:
ANY CLAIMS FOR CONSTRUCTION DEFECTS ARE SUBJECT TO THE NOTICE AND CURE PROVISIONS OF CHAPTER 558, FLORIDA STATUTES.
Parties may agree to opt out of the requirements of Chapter 558, but must do so in writing. Simply leaving the mandatory notice provision out of the contract will not suffice to eliminate the need to comply with this statute.
The purpose of the contractual notice is to promote awareness of the procedure, not to be a penalty. Failure to include the mandatory notice in the contract does not subject the owner, contractor, or design professional to any penalty.
CONTRACTOR LICENSE NUMBER
Section 489 requires a licensed contractor to affix his or her license number on all construction contracts he or she enters into. Specifically, the registration or certification number of the contractor shall appear in each proposal, bid, contract, or advertisement, used by contractor or business organization in the practice of contracting.
A contractor that fails to comply, is subject to penalty. For a first offense, the contractor is given notice and an opportunity to correct; failure to correct upon 30 days from notice will subject the contractor to fine or citation. For all subsequent offenses, the contractor is subject to fine or citation without notice and opportunity to correct.
DEVELOPING & SALE OF PROPERTY
When new home construction contracts involve the sale and purchase of real estate, the FL Statutes mandate additional provisions which do not otherwise apply. Section 501.1375(2) requires notice of buyer’s right to have funds placed in escrow account and Section 689.261 requires compliance for the disclosure of ad valorem taxes
About Company
WESLEY MANAGEMENT COMPANY Consulting company servicing Owners, (POA/HOA) Associations, Developers & Contractors with capital improvements and construction projects. Providing management consulting services in the areas of:
Construction Management: Administration & coordination to deliver a project from inception to completion; meeting the Client’s budget & standards
Owner/Contractor Representation: Observations verifying work proceeds per specification; confirming installations are monitored for compliance with the contract documents
Expert Opinion & Witness: Post construction claims analysis, forensic observation & accountability
Insurance & Mitigation Inspections: Inspections & observations for purchase, or insurance verification & discount
Mission Statement
Assisting to complete contract obligations & achieve Client satisfaction
Licensing & Insurance
Licenses, Certificates of Insurance and pre-qualification information may be furnished upon request. Our firm maintains State, Federal and OSHA requirements for Safety Plans, HAZCOM Communication, Drug Free Work Place and as an Equal Opportunity Employer.
Licensed for commercial drone/UAS operations per FAA Part 107 Certification. Professional liability and job specific aerial drone insurance can be provided.
Certificates
Members of the Company hold certifications for specialty trades, training & licensing, in addition to State required continuing education.
History
Over thirty years experience in providing construction management.
For more information, visit wesleymanagement.com or call 561 316 7678.
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