Filing a Mechanics Lien in Florida

Florida law offers strong lien rights for general contractors and suppliers. Providing that correct paperwork is in place if a contractor isn’t paid for a job, they are able to file a lien to receive payment as well as protecting themselves. In cases of non-payment, there are requirements that need to be fulfilled and a strict process followed. 

These are 3 important things you need to know about the mechanics lien law in Florida:

 

1) The Notice to Owner is a Strict Requirement

A preliminary notice (referred to as the Notice to Owner) needs to be delivered as soon as possible after the first labor or materials are provided. For parties who do not contract directly with the property owner, they must serve a Notice to Owner within 45 days of providing labor or materials to the project. The two exceptions are for individual labourers as well as design professionals (such as architects and engineers) who are not required to send an NTO.

There is also provision for property owners to request a list of subcontractors and suppliers from the general contractors. If the general contractor receives this request, they have 10 days from when the request is made to supply the list of subcontractors and suppliers that they have hired for the project. 

Who receives the notice?

• If you have been hired by the general contractor, the notice should be sent to the property owner.
• If you were hired by a subcontractor, the notice should be sent to the property owner and the general contractor.
• For those hired by a sub-subcontractor, the notice will need to be sent to the property owner, the general contractor as well as the subcontractor.

If you are involved in a construction project, and you don’t know who these parties are, help is at hand. Florida’s Notice to Owner law means that you can rely on publicly available information.

Importantly, when sending the Notice to Owner in Florida, it must be sent by Certified Mail, and a Return Receipt must be requested.

 

2) A Mechanics Lien Must Be Filed Within 90 Days From the Last One Doing Work (This Excludes Warranty Work)

Florida lien law is different from many other states in that mechanics lien claimants must record mechanics liens within 90 days from the last day that they did work on the project. The 90-day period starts from when the substantive portion of the work has been completed and does not include the correction of deficiencies in work, or warranty work. In the case of equipment rental companies, the count down starts from the last date that the equipment was on-site and available for use.

In most cases in Florida, the mechanics lien must be recorded with the Clerk of Court where the county maintains property records. The exception to this is where the county has a designated County Recorder who is responsible for property records. Before filing your lien, determine where it needs to be filed so that there is no confusion, and the lien is filed within the deadline.

 

3) Not All Parties Have Lien Rights in Florida

Mechanics lien law provides lien rights to general contractors, subcontractors, material suppliers, laborers, professionals, and equipment rental companies. In Florida, there is no requirement that you have a written contract in place in order to file a mechanics lien. But the following parties do not have rights to file a mechanics lien in Florida:

• Suppliers to suppliers
• Suppliers to sub-sub contractors
• Sub-sub-subcontractors
• Maintenance workers
• Parties who should be licensed in Florida, but are working without a license

Contractors Reporting Services in Tampa, Florida, specializes in assisting clients with when, where and how to file a mechanics lien. Trust them to help you with the paperwork while you focus on fulfilling your contracts and securing new ones.

The following information was originally seen on Filing a Mechanics Lien in Florida and is republished from Contractors Reporting Services. See more on:} The Contractors Reporting Services Blog in Tampa

3 Frequently Asked Questions About Filing the Notice of Commencement in Florida

When it comes to the filing of the Notice of Commencement in Florida, there are a number of questions that come up most frequently. For general contractors and subcontractors, it’s important to understand the protection that the NOC offers. And for all involved parties, the Notice of Termination has a critical part to play in the ending of the Notice of Commencement, which also has implications for parties involved in the project.

How does the Notice of Commencement protect general contractors in Florida?

The Notice of Commencement benefits general contractors in much the same way as it benefits property owners. Importantly, the NOC designated the start date of the project, posing a strict deadline for the notice requirements that need to be sent by material suppliers and subcontractors. And, if payment issues arise in the future, the general contractor in Florida will only need to deal with the mechanics lien claims of parties that have met the pre-lien notice deadlines.  

This would be an issue in the case where a subcontractor leaves the project before completion without settling their dollar-outstanding money (Outstandings) with sub-subcontractors and equipment suppliers. If sub-subcontractors and other project participants had not submitted their pre-lien notices before the deadline, this would have the effect of rendering their mechanics lien-claims null and void. This would mean the general contractor would not be liable for any of the debts that were incurred by the subcontractor.

 

Why is the Notice of Commencement important for material suppliers and subcontractors?

The NOC has an impact on potential lien claimants for all parties down the contracting chain from the subcontractor, sub-subcontractor and more. In addition to its other important roles, the NOC contains almost all of the information that will be needed if pre-lien notices need to be filed.  Specifically, the mechanics lien itself is found on the Notice of Commencement.

The Notice of Commencement also contains the names of the property owners along with their contact information. So, in the case of filing a mechanics lien, these parties will need to be served and having the correct information is important. 

The NOC also contains the official starting date of the project. This date forms the base from which preliminary notice deadlines can be calculated as knowing when to issue pre-lien notices is critical for protecting lien rights. 

Payment issues come up regularly in the construction industry, so a carefully planned timetable for potential mechanics lien-claims is a good precautionary step.

 

Is it possible to terminate a Notice of Commencement and how is it done?

In Florida the Notice of Commencement can be terminated. This happens when a property owner experiences financial issues, or in the situation where they wish to terminate all, or in some cases, part of the construction. 

If an NOC is to be terminated, the property owner will need to:

• File a Notice of Termination including the same information that was included on the NOC
• Specify the date when the commencement notice will be effectively terminated in the Notice of Termination
• State clearly in the Notice of Termination that all claimants have been paid in full
• Serve copies of the Notice of Termination to the general contactor and all other claimants before the Notice of Termination is recorded.

For a full understand of the process for terminating the Notice of Commencement in Florida is available on Section 713.132 of the Florida Statutes.

 

Contractors Reporting Services in Tampa, Florida offers help for property owners and general contractors by providing assistance with the paperwork allowing their clients to focus on getting the job done.

The next post was first published on 3 Frequently Asked Questions About Filing the Notice of Commencement in Florida and is republished from Contractors Reporting Services. Read more on:} Contractors Reporting Services Blog