Understanding the Notice Requirements Under Florida’s Lien Law

An Introduction to Lien Law and Filing the Notice Commencement

If you work in the construction industry or own a property that requires work done to it, it is important to have a thorough understanding of Florida’s lien law and the Notice to Owner requirements.

What is the Purpose of Florida’s Lien Law?

The lien law can be utilized by a supplier, contractor or subcontractor to ensure that they are fully compensated for work that they complete or for their materials. It also protects the owner of a construction project from having to pay twice for work done or materials associated with the project.

What are Lien Rights?

These are the rights established by law in Florida that allow a lien to be filed in the event of non-payment. It’s important to understand the implications of this to make sure builders are compensated for their work, and owners do not become a subject of a lien or end up paying twice for the work.

Lien rights are particularly important because of the way that they govern the builder's relationship with the owner of the property as there can be a significant impact on lien rights if there is a crossover between a subcontractor and a contractor’s scope of work.

Common Contract Situations and Implications for Serving a Notice to the Owner

There are two main contract situations that commonly arise: when the contract is with the owner of the property, and when the contract is with someone else other than the owner.

Contract with the Owner

If the contract is for an amount greater than $2500 between the owner and the contractor, there needs to be a disclosure (found here), and the disclosure needs to be on the first page of the contract or on a separate page but signed by the owner.

If this statutory disclosure is not included, the rights of other lienors who do not have a contract with the owner are not affected, and the contractor may only be barred if the owner was adversely impacted by the failure to include the disclosure.

Contract with Someone Other Than the Owner

In most cases, Subcontractor and Supplier lien rights cannot be perfected without first serving a Notice to Owner (which can be viewed here).

The purpose of the Notice to the Owner informs the Owner of the property that someone is supplying material for their project. Typically, the Owner will work exclusively with the Contractor which means that the Owner may not know which Subcontractors or Suppliers have been responsible for providing services or materials.

The Notice to Owner, therefore, serves two important functions, firstly identifying the parties who have been working on the project and secondly, informing the Owner that Subcontractors and/or Suppliers have a right to lien the property in the case of non-payment.

The timing for serving the Notice to Owner is vital, as the technical lien laws laid out in Florida Statute 713.06 show. It must be served either before providing labor, services or materials; within 45 days of furnishing labor, services or materials; or before the Owner makes final payment for the project (after receiving the Final Payment Affidavit from the Contractor).

If you need to deliver a Notice to Owner, best practice is to deliver it before work on the project starts. If it’s not served then, then the Subcontractor will need to keep a careful eye on the timeline in order to perfect the lien. If this is not adhered to, it may result in losing lien rights.

A Notice to Owner does not automatically perfect a Subcontractors lien rights, but missing the deadline for serving the notice can be fatal to those rights. Keeping track of deadlines and a log of when Notices were sent will help protect lien rights. Contractors Reporting Services in Tampa, FL can help with managing the paperwork aspects of general contracting licenses and services.

The next blog post was originally seen on Understanding the Notice Requirements Under Florida’s Lien Law and is republished from Contractors Reporting Services. Find more on:} Contractors Reporting Services website

Worker’s Compensation in Tampa, Florida: We Answer Your Top Questions

All businesses that are involved in construction in Florida, including Tampa, are subject to a specific set of rules and regulations that govern the way that they do business.

We’ve compiled a list of the most important questions that will help prevent experience mod workers’ compensation overcharges.

Is my business classified as a construction business?

The best way to check this is to access the Florida Division of Workers’ Compensation which has published the official list of which business class codes are considered to be part of the construction industry. Here is a link to the list: https://www.flrules.org/gateway/notice_Files.asp?ID=10040390

For businesses in the construction industry, what are the requirements for workers’ compensation compliance?

Florida legislation for construction businesses requires either an active workers’ compensation policy or alternatively, a valid exemption for workers’ compensation. Even if you already have an exemption for yourself as the owner of the company, you will still need a valid workers’ comp policy that covers each individual that you employ.

The legislation stipulates that every employee that works on a construction site in Florida is required to be covered by a workers’ compensation policy (or hold a valid exemption). This ruling applies to both long-term employees and short-term hires that are brought on to the job site to help out.

How does an exemption work and can I apply for one?

You can apply for a worker’s comp exemption if you are a business owner, it allows you to be excluded from having to buy workers’ comp insurance for yourself. Note that this means that if you are hurt on the job, you will not be eligible to receive worker’s comp benefits.

In all cases, exemptions are only valid for the person and the company that have been listed on the exemption. For businesses in the construction industry in Florida, to be eligible for an exemption, the individual needs to be a part owner of a corporation or limited liability company and needs to have at least a 10% ownership share. Employees that do not have an ownership share are not eligible to apply for an exemption.

How does the application process work?

The applications for workers’ compensation exemptions are filed on the MyFloridaCFO website on the division of workers’ compensation page. Navigate here, and click on the option that says “Apply for an Exemption.” As per the website, construction industry exemptions attract a fee of $50 and must be renewed every two years to stay valid.

Do different rules apply for businesses and workers from different states working on projects in Florida?

Construction businesses that are registered outside of Florida, but that are completing work within the state are required to either obtain a workers’ comp policy that is valid in Florida or apply for a Florida endorsement for their out of state policy that will cover their operations in Florida. It is a legal requirement that out-of-state companies pay workers’ comp rates if they wish to work in Florida.

What process do I follow if I’m hiring a subcontractor?

Legislation in Florida stipulates that you are responsible for ensuring that all subcontractors and their employees either have their own workers’ compensation policy or that they hold a valid exemption that covers all workers on site. If you find that a subcontractor does not comply with the legal requirements, they will need to correct the issues before they can be allowed back on the job site. Failure to do so will result in your insurance company charging a premium to cover those workers; you are also at risk of having your insurance canceled as well as potentially attracting fines from the State Division of Workers’ Compensation.

Contractors Reporting Services in Tampa Fl has been helping builders with their paperwork since 1965, if you need assistance with workers’ comp policies or exemptions for your business, please get in touch.

The following information was first published to Worker’s Compensation in Tampa, Florida: We Answer Your Top Questions and is republished from Contractors Reporting Services. Find more on:} http://activatemylicense.com

Required Experience and Education for a Contractor License in Florida

Based on the recent news, the construction industry in the state of Florida is one of the most promising sectors in the US---this makes it an opportune time to acquire a contractor’s license and get the money rolling into your bank account. Note that as soon as you receive your Florida contractor’s license, continuing education courses are needed for FL contractor’s license renewal (around 14 hours).

Before you figure out what kind of experience and education you specifically need, you have to decide what kind of FL contractor license to acquire. There are two different kinds of contractor’s license in Florida. The registered contractor’s license in Florida allows the contractor to work inside a particular area in Florida. What is needed for this kind of Florida contractor’s license is a certificate of competency. And the other kind is a certified license. This FL contractor license lets you as a contractor work anywhere in the state.


Focusing on Experience & Education
For Florida, there are different approaches to qualifying for a contractor’s license. First, you must have 4 years of experience and/or education. The education can be 4 years at a school of higher learning that has been accredited and gives you degree that is connected to construction. Or you can opt for 3 years of higher learning course followed by 1 year of working experience in the construction industry. As you can see, there should be a combination of experience and education.

There are also other ways in which to combine experience and education in order to qualify as a contractor. You can have 3 years being a worker and 1 year being a foreman. Another way is to have 2 years of college credits from an accredited school alongside a year as a foreman and another year as a worker. The last way you can get substantial experience for qualification is if you have a year of college credits from an accredited school, 2 years of experience as a worker, and 1 year experience as a foreman.

Qualifying for Military Vets

In the year 2016, it was more convenient for military vets to become qualified contractor’s license holders. Currently, if you have military experience of up to 3 years, this can apply to the education and experience requirement of 4 years. Even better, the military work does not have to be connected to construction. Vets who would like to apply for this waiver can submit the Veteran Fee Waiver and Military Service Verification Form. Vets also need to accomplish a licensure application based on the kind of contractor’s license in Florida that they need. As soon as they have been given the license, they still need to have the 14 hours of continuing education for every 2 years in order to keep their license.

Deciding to Continue Education

If you would like to always be approved during license renewal every 2 years, you have to be proactive and decide on your continuing education. You can browse through course booklets and review course material. This is so you can pass the needed 14 hours of study. You have to make sure, however, that the courses have been approved by the Florida licensing board. Also, double check that as soon as you finish your continuing education courses, the institution you’re working with notifies the Florida Construction Industry Licensing Board by furnishing them with a copy of your completion certificate.

No matter where you’re located in Florida, we at Contractors Reporting Services make Florida contractor’s license requirements, renewal, etc., easy. Located in  Tampa, Florida, we’re ready to talk to you about your licensing needs and concerns.
The next info was originally seen on Required Experience and Education for a Contractor License in Florida and is courtesy of Contractors Reporting Services. Find more on:} Contractors Reporting Services

Steps to Apply for a Contractor’s License in Florida

Applying for a contractor’s license in Florida is accomplished at the local and state level. The process of licensing is under the purview of the Construction Industry Licensing Board, with guidance from the Florida Department of Business and Professional Regulation.

In this article, we discuss the steps you need to take to apply for a Florida contractor’s license.

Figure Out the Kind of Contractor License You Need to Apply For

There are two kinds of FL contractor’s license. At the level of the state, there is the Certified License and at the local level, there is the Registered License. Once you’ve figured this out, you have to determine if you are a Division I Contractor or a Division II Contractor.

Division I Contractors are general contractors, building contractors, and residential contractors. Division II Contractors, on the other hand, are more specific, such as Underground Utility Contractors, Tank Lining Applicators, Specialty Contractors, Solar Contractors, Sheet Metal Contractors, Roofing Contractors, Spa/Pool Contractors, Pollutant Storage System Contractors, Plumbing Contractors, Mechanical Contractors, and Air-Conditioning Contractors.

Get the Application Forms

You can get the application forms through the Construction Industry Licensing Board.

Study for and Pass the Exams

To get a Certified Contractor License, you have to study for and pass the Division I or Division II exams, as applicable. This does not include Pool Contractors.

Professional Testing conducts these examinations. If you think you are ready to take the exams, go online to register and apply through their website or contact them via email at flconstruction@proftesting.com. More information is available in the application form.

If you think you need further preparation prior to testing, there are contractor license schools in the state, even specialized ones.

Gather and Submit the Requirements

First, you have to show proof of financial responsibility. You have to submit a credit report that has, at minimum, a 660 FICO-derived score. You have to make sure that the credit reporting agency puts in your score in the said report. Please note that if your credit score falls below 660, you must show a surety letter or bond or credit.

Second, you should scan and submit your electronic fingerprints by making use of the Florida Department of Law Enforcement (FDLE) Livescan Device Vendors. Remember that before you submit your license application, there should be sufficient time for FDLE to process the results of your fingerprints. This is because it takes five days for processing.

Third, you have to show evidence of liability insurance. For General and Building Contractors, the General Liability Insurance is $300,000 for public liability and $50,000 for property damage. For all other contractors, it’s $100,000 for public liability and $25,000 for property damage.

Fourth, you have to give evidence of compensation insurance for your workers. If you plan on hiring or already have employees, you need to get them compensation insurance.

Note that if you are applying for a Certified License, you need proof of qualification and if you are applying for a Registered License, you need proof of competency.

Get a Contractor License Bond

If you did not reach the FICO credit score of 660 and above, you should give a bond. The bond amount differs, according to the contractor category. The bond for Division I Contractors is $20,000 while the bond for Division II Contractors is $10,000.

Notably, the bond amount can be decreased to half if the applicants finish a fourteen-hour financial responsibility course. The board should approve the course provider.

Submit Your Application

Fill out your application form by completing it in ink. Afterwards, pay the necessary licensing fees issuing a check to the Florida Department of Business and Professional Regulation.

As you can see, applying for a Florida contractor’s license can get tedious. The specialists at Contractors Reporting Services in Tampa, FL helps you to go through the necessary processes so you can get a contractor’s license in Florida in no time.

The next post was originally seen on Steps to Apply for a Contractor’s License in Florida and is republished from Contractors Reporting Services. See more on:} http://activatemylicense.com