Miyerkules, Hulyo 15, 2020

Tampa Contractors Reporting Service Offers Tips on COVID-19

On March 11, 2020, the World Health Organization declared the outbreak of COVID-19 a worldwide pandemic. Only a few days later on March 13, the President of the United States declared the American coronavirus outbreak a national emergency. In the ensuing days and months, life and business in America and around the world changed as nations recalibrated economies, companies, industries, educational institutions, and lifestyles to cope with the invisible threat of COVID-19. Social distancing, self-quarantine, sheltering in place, massive layoffs, and remote work became the new normal.

general contractor license

With most of the United States under lockdown, only essential businesses and activities were permitted. The construction industry, by and large, was deemed essential in most states. Designation as “essential” meant continued operations but with some significant alterations in business practices to ensure worker, vendor, and client safety.

One construction industry analyst described the situation as requiring “sweeping changes” that might be long-term. “In the span of two months, the coronavirus crisis has demanded sweeping changes from the US construction industry, and experts say many of them will remain in place even after the outbreak recedes. As contractors prepare to return to work on sites that have been shut down by shelter-in-place initiatives, they will face an industry that has been drastically changed by both the public health and economic effects of the pandemic.”

Industry analysts recognize eight ways COVID-19 is re-shaping the construction industry for the near future and beyond.

  1. Job sites will be cleaner and safer.
  2. Through the use of technology, social distancing will be the norm.
  3. Projects will take longer to complete.
  4. Telework will become more common.
  5. Union influence will grow.
  6. Demand for project types will change from hospitality, retail, and entertainment to healthcare and healthcare-related manufacturing.
  7. Supply chains will recalibrate in an effort to avoid anticipated disruptions.
  8. Modular adoption (offsite construction) will increase.

Making the Work Environment Safer

Contractors across the US are implementing practical changes in their daily operations. Tighter safety measures are designed to promote and preserve the health of the client and the crew.

The construction industry is working diligently to maintain the trust and confidence of clients during and after the pandemic. Here are some of the safety measures the industry is implementing in order to provide safe construction services to the client.

1. Implementing CDC guidelines across the board

Construction companies are instructing employees to follow CDC guidelines while on the job. Across the entire industry, service and supply companies are also adopting and following CDC guidelines and safe practices.

2. Practicing on the job social distancing

Employee travel is limited to one person per vehicle. The vehicles are sanitized at least twice daily. Daily team meetings in the mornings or afternoons are being suspended until further notice. Staggered start times limit group contact. Where possible, travel is limited to one person per vehicle.

Virtual project management and job supervision is maintaining and even improving job performance and quality control. Companies are utilizing technologies such as Zoom for video meetings with employees, vendors, subcontractors, and clients.

3. Improving employee hygiene

Crews are using hand-sanitizer, wearing face masks, and are not sharing tools. Where possible, crew sizes are intentionally lean. Symptomatic crew members are sent home or are staying at home under self-quarantine.

4. Adjusting the office and sales staff work environment

On the sales front, where customer contact most often occurs, companies are keeping the experience safe yet still personal. New practices include:

  • Social distancing while engaged in onsite consultations with clients
  • Face masks and gloves
  • Paperless documents for estimates, invoices, site plans, and general correspondence
  • Remote work for office staff, engineers, architects, and project managers
  • Outsourcing permitting, licensing, notifications, and renewals through companies like Contractors Reporting Services in Tampa. Other services that can be outsourced are on the company website.

Conclusion

The construction industry, including Contractors Reporting Services, is essential and striving for safety. Contractors Reporting Services in Tampa fits in well with the policies and procedures of companies seeking to be efficient and safe. Clients can have every confidence that employees and staff are following CDC guidelines and recommendations. Social distancing, workforce screening, paperless documents, and other measures have been implemented to preserve and promote the safety of clients.

For more information about Florida contractor license requirements, visit the  Contractors Reporting Services website at activatemylicense.com. Contact the office by phone at (813) 932-5244.

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Biyernes, Hulyo 10, 2020

Contractor Consulting Firm Explains Changes Affecting Florida Contractors

The Florida construction industry must be familiar with the impactful changes which have recently been made to the payment bond claim requirements on private projects under section 713.23, Florida Statutes, effective Oct. 1, 2019. If subcontractors, suppliers, and workers fail to comply, they lose their right to payment from the payment bond surety insurance. Owners and contractors must understand the changes in the sureties in order to determine if their claims are valid. The changes to section 713.23, Florida Statutes, made by House Bill 1247, can be reviewed in detail online in PDF form.

general contractor

A payment bond is a three-party agreement that includes the property owner (oblige), the general contractor (principal), and surety. The surety guarantees that the contractor will pay subcontractors, workers, and material suppliers for their work on a construction project. A payment bond functions as security for payment instead of the right that subcontractors, workers, and suppliers would typically have to file a construction lien against the project. Instead, the individuals must bring their claims against the payment bond. As a result, claims of lien filed against the property will be transferred to the bond. Subcontractors, laborers, and suppliers must be familiar with and comply with the payment bond claim requirements on bonded projects.

Which Changes Should Payment Bond Claimants Know About?

1. Notice of Nonpayment

Under current law, in order to proceed with a claim against a payment bond, all potential claimants are required to serve a written notice of nonpayment to the contractor and the surety. This notice must be issued no later than 90 days after the claimant’s final provision of labor, services, or materials to the project. Filing late nullifies the right to recover payment.

House Bill 1247 made significant changes to the requirements of what must be included in the notice of nonpayment. The form includes numerous items of the required information, several of which are listed below.

  • The name and address of the contractor
  • The name and address of the surety
  • The nature of the labor or services provided
  • The nature of the labor or services to be provided, if known
  • The materials furnished
  • The materials to be supplied, if known
  • The amount paid on the account
  • The amount due as well as how much of the amount owed is for retainage, if any
  • The amount to become due, if known
  • The signature and address of the notice provider

All of the statements made in the notice of nonpayment must now be made under oath. In addition, the following declaration must be included: “I declare that I have read the foregoing Notice of Nonpayment and that the facts stated in it are true to the best of my knowledge and belief.” Should the notice fail to abide by these requirements, the claimant risks losing or impairing his or her rights under the payment bond.

2. Fraudulent Notice of Nonpayment

House Bill 1247 also creates a new concept of a fraudulent notice of nonpayment. Claimants will lose all rights under the payment bond if they serve a fraudulent notice of nonpayment.

A notice of nonpayment will be considered fraudulent in the following cases:

  1. The claimant willfully exaggerates the payment amount that is due.
  2. The claimant willfully includes a claim for work not performed or materials not furnished.
  3. The claimant prepares the notice of nonpayment with willful and gross negligence, resulting in willful exaggeration.

A minor mistake or good faith dispute regarding the amount owed will not defeat an otherwise valid claim against the bond. Payment bond claimants need to be aware of this new risk. They will need to carefully and conservatively prepare and submit their sworn notices of nonpayment to avoid the potential fraudulent notice of nonpayment defenses by contractors or sureties.

3. Time Limit to Serve Notice of Nonpayment for Rental Equipment

Lastly, House Bill 1247 changes the time limitations associated with submitting a notice of nonpayment. A notice of nonpayment must be served on the contractor and the surety no later than 90 days after the claimant’s final furnishing of labor, services, or materials to the project. Rental equipment is included under this time limit with some specific requirements to be met. Failure to file on time can preclude the claimant’s right to recover payment.

general contractor license florida

Conclusion

The changes listed above are only some of the more significant details of the legislative changes that have been made. Note that these changes apply to construction industry participants on privately bonded projects. Subcontractors, workers, and suppliers need to be aware of and adhere to these changes. The details of each project are different, so consult a professional regarding any issues or inquiries regarding payment bond claims and notice requirements.

For more information about obtaining a general contractor license in Florida, contact Contractors Reporting Services in Tampa, Florida at (813) 932-5244.

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Contractor Consulting Firm Explains Changes Affecting Florida Contractors

The Florida construction industry must be familiar with the impactful changes which have recently been made to the payment bond claim requirements on private projects under section 713.23, Florida Statutes, effective Oct. 1, 2019. If subcontractors, suppliers, and workers fail to comply, they lose their right to payment from the payment bond surety insurance. Owners and contractors must understand the changes in the sureties in order to determine if their claims are valid. The changes to section 713.23, Florida Statutes, made by House Bill 1247, can be reviewed in detail online in PDF form.

general contractor

A payment bond is a three-party agreement that includes the property owner (oblige), the general contractor (principal), and surety. The surety guarantees that the contractor will pay subcontractors, workers, and material suppliers for their work on a construction project. A payment bond functions as security for payment instead of the right that subcontractors, workers, and suppliers would typically have to file a construction lien against the project. Instead, the individuals must bring their claims against the payment bond. As a result, claims of lien filed against the property will be transferred to the bond. Subcontractors, laborers, and suppliers must be familiar with and comply with the payment bond claim requirements on bonded projects.

Which Changes Should Payment Bond Claimants Know About?

1. Notice of Nonpayment

Under current law, in order to proceed with a claim against a payment bond, all potential claimants are required to serve a written notice of nonpayment to the contractor and the surety. This notice must be issued no later than 90 days after the claimant’s final provision of labor, services, or materials to the project. Filing late nullifies the right to recover payment.

House Bill 1247 made significant changes to the requirements of what must be included in the notice of nonpayment. The form includes numerous items of the required information, several of which are listed below.

  • The name and address of the contractor
  • The name and address of the surety
  • The nature of the labor or services provided
  • The nature of the labor or services to be provided, if known
  • The materials furnished
  • The materials to be supplied, if known
  • The amount paid on the account
  • The amount due as well as how much of the amount owed is for retainage, if any
  • The amount to become due, if known
  • The signature and address of the notice provider

All of the statements made in the notice of nonpayment must now be made under oath. In addition, the following declaration must be included: “I declare that I have read the foregoing Notice of Nonpayment and that the facts stated in it are true to the best of my knowledge and belief.” Should the notice fail to abide by these requirements, the claimant risks losing or impairing his or her rights under the payment bond.

2. Fraudulent Notice of Nonpayment

House Bill 1247 also creates a new concept of a fraudulent notice of nonpayment. Claimants will lose all rights under the payment bond if they serve a fraudulent notice of nonpayment.

A notice of nonpayment will be considered fraudulent in the following cases:

  1. The claimant willfully exaggerates the payment amount that is due.
  2. The claimant willfully includes a claim for work not performed or materials not furnished.
  3. The claimant prepares the notice of nonpayment with willful and gross negligence, resulting in willful exaggeration.

A minor mistake or good faith dispute regarding the amount owed will not defeat an otherwise valid claim against the bond. Payment bond claimants need to be aware of this new risk. They will need to carefully and conservatively prepare and submit their sworn notices of nonpayment to avoid the potential fraudulent notice of nonpayment defenses by contractors or sureties.

3. Time Limit to Serve Notice of Nonpayment for Rental Equipment

Lastly, House Bill 1247 changes the time limitations associated with submitting a notice of nonpayment. A notice of nonpayment must be served on the contractor and the surety no later than 90 days after the claimant’s final furnishing of labor, services, or materials to the project. Rental equipment is included under this time limit with some specific requirements to be met. Failure to file on time can preclude the claimant’s right to recover payment.

general contractor license florida

Conclusion

The changes listed above are only some of the more significant details of the legislative changes that have been made. Note that these changes apply to construction industry participants on privately bonded projects. Subcontractors, workers, and suppliers need to be aware of and adhere to these changes. The details of each project are different, so consult a professional regarding any issues or inquiries regarding payment bond claims and notice requirements.

For more information about obtaining a general contractor license in Florida, contact Contractors Reporting Services in Tampa, Florida at (813) 932-5244.

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Miyerkules, Abril 29, 2020

7 Reasons Why Contractors Need General Liability Insurance

Construction sites involve many workers, complicated licensing and regulations, dangerous equipment, and sometimes even dissatisfied customers. Liability insurance is indispensable for general contractors and construction firms. It is important to understand the many facets of general liability insurance and how it affects the construction industry.

General Contractors License

What Is General Liability Insurance?

General liability insurance covers many unexpected circumstances. Some of the most common are lawsuits, legal counsel, and medical bills resulting from injuries on a business’s property. Complaints of slander or libel may be covered as well.

When obtaining general liability insurance, the plan will have a maximum coverage amount. When determining coverage, the rates will reflect how much the insurance company will pay for legal fees and settlements and how much the contractor or construction company will have to pay.

It is recommended to research average legal and lawsuit costs in the area before settling on a maximum coverage amount. A contractor reporting and consulting service can assist in working through the details.

Should a general contractor or construction firm have liability insurance? Here are 7 reasons why they should.

  1. Worker and Bystander Injuries

All companies with more than three employees must provide workers compensation. General liability insurance can also help cover workers’ lawsuits when they are injured on the job. Sometimes people enter a construction zone with or without permission and may become injured. General liability insurance will cover medical expenses and litigation resulting from the injury.

  1. Material Issues

Even if the construction process goes smoothly, sometimes issues arise after the project is completed. Faulty or inferior materials may be the cause. Sometimes the contractor is blamed for issues. Liability insurance will cover such legal action arising after the project is completed.

  1. Property Damage

In the construction process, occasionally damage occurs to existing buildings or land either on the project site or on adjacent property. General liability insurance would take care of unintended expenses.

  1. False Advertising Claims

Many people are not aware that general liability insurance covers claims of false advertising. While such cases are a less common issue with construction jobs, contractors are sometimes sued when people do not believe they have fulfilled their promises.

If customers are not satisfied with the finished project, they may claim there has been a failure to deliver on the contract. Liability insurance makes sure the contractor will not have to pay for a lawsuit.

  1. Copyright Issues

People often do not consider that copyright laws apply to construction blueprints. However, blueprints and plans are sometimes protected intellectual property. If a business or individual thinks that a contractor has disclosed plans that should have been kept confidential, a lawsuit may be filed to resolve the issue. Liability insurance will cover such a lawsuit.

  1. Project Bids

Many contractors win major projects by offering price bids. Many business or government construction jobs require contractors to have general liability insurance and be bonded. Bonding covers the customer if there are any issues with the construction company. The insurance covers the contractor or construction company if the customer or employees sue.

Since insurance is often a requirement before a bid can be submitted, being insured qualifies contractors to submit bids on more and better jobs.

  1. Employee Benefits

General liability insurance can be a benefit offered to employees. If there are employees or individuals with whom the contractor often contracts with, they can be added to the company’s liability policy. This benefit is attractive to employees and contract laborers and will enhance worker retention.

general contractor license

Conclusion

Liability insurance protects the insured general contractor in cases of personal injury, property damage, and material flaws. Lawsuits concerning false advertising and copyright violations also fall under the scope of general liability insurance. General liability insurance is required before some project bids can be placed. Employees and contract laborers may be covered under liability insurance. To function at optimal efficacy, general liability is a necessity for a contractor or construction company.

For more information about obtaining a general contractor license in Florida, contact Contractors Reporting Services in Tampa, Florida at (813) 932-5244.

The post 7 Reasons Why Contractors Need General Liability Insurance appeared first on Contractors Reporting Services.



7 Reasons Why Contractors Need General Liability Insurance

Construction sites involve many workers, complicated licensing and regulations, dangerous equipment, and sometimes even dissatisfied customers. Liability insurance is indispensable for general contractors and construction firms. It is important to understand the many facets of general liability insurance and how it affects the construction industry.

General Contractors License

What Is General Liability Insurance?

General liability insurance covers many unexpected circumstances. Some of the most common are lawsuits, legal counsel, and medical bills resulting from injuries on a business’s property. Complaints of slander or libel may be covered as well.

When obtaining general liability insurance, the plan will have a maximum coverage amount. When determining coverage, the rates will reflect how much the insurance company will pay for legal fees and settlements and how much the contractor or construction company will have to pay.

It is recommended to research average legal and lawsuit costs in the area before settling on a maximum coverage amount. A contractor reporting and consulting service can assist in working through the details.

Should a general contractor or construction firm have liability insurance? Here are 7 reasons why they should.

  1. Worker and Bystander Injuries

All companies with more than three employees must provide workers compensation. General liability insurance can also help cover workers’ lawsuits when they are injured on the job. Sometimes people enter a construction zone with or without permission and may become injured. General liability insurance will cover medical expenses and litigation resulting from the injury.

  1. Material Issues

Even if the construction process goes smoothly, sometimes issues arise after the project is completed. Faulty or inferior materials may be the cause. Sometimes the contractor is blamed for issues. Liability insurance will cover such legal action arising after the project is completed.

  1. Property Damage

In the construction process, occasionally damage occurs to existing buildings or land either on the project site or on adjacent property. General liability insurance would take care of unintended expenses.

  1. False Advertising Claims

Many people are not aware that general liability insurance covers claims of false advertising. While such cases are a less common issue with construction jobs, contractors are sometimes sued when people do not believe they have fulfilled their promises.

If customers are not satisfied with the finished project, they may claim there has been a failure to deliver on the contract. Liability insurance makes sure the contractor will not have to pay for a lawsuit.

  1. Copyright Issues

People often do not consider that copyright laws apply to construction blueprints. However, blueprints and plans are sometimes protected intellectual property. If a business or individual thinks that a contractor has disclosed plans that should have been kept confidential, a lawsuit may be filed to resolve the issue. Liability insurance will cover such a lawsuit.

  1. Project Bids

Many contractors win major projects by offering price bids. Many business or government construction jobs require contractors to have general liability insurance and be bonded. Bonding covers the customer if there are any issues with the construction company. The insurance covers the contractor or construction company if the customer or employees sue.

Since insurance is often a requirement before a bid can be submitted, being insured qualifies contractors to submit bids on more and better jobs.

  1. Employee Benefits

General liability insurance can be a benefit offered to employees. If there are employees or individuals with whom the contractor often contracts with, they can be added to the company’s liability policy. This benefit is attractive to employees and contract laborers and will enhance worker retention.

general contractor license

Conclusion

Liability insurance protects the insured general contractor in cases of personal injury, property damage, and material flaws. Lawsuits concerning false advertising and copyright violations also fall under the scope of general liability insurance. General liability insurance is required before some project bids can be placed. Employees and contract laborers may be covered under liability insurance. To function at optimal efficacy, general liability is a necessity for a contractor or construction company.

For more information about obtaining a general contractor license in Florida, contact Contractors Reporting Services in Tampa, Florida at (813) 932-5244.

The post 7 Reasons Why Contractors Need General Liability Insurance appeared first on Contractors Reporting Services.



Miyerkules, Abril 22, 2020

6 Reasons General Contractors Should Pull Permits Before a Project Begins

A holder of a general contractor’s license performs many functions in a building project. They lay out the overall plan and manage schedules and timeframes. Licensed general contractors in Tampa, FL coordinate the proper sequences of the project components. The general contractor is responsible for subcontractors, suppliers, equipment rental, and materials. As project managers, they also are responsible for taking care of all documentation, such as pulling permits and filing Notice of Commencement.

general contractor

Some general contractors will wait until after a project has commenced pulling building permits. Other general contractors will negotiate with the property owner to have the property owners pull the contracts. Neither course of action is advisable.

Here are several reasons why it is unwise to delay pulling building permits in Florida until after a project has started.

  1. Excessive fines could be levied against the general contractor or property owner. Starting and running a construction job site without proper permitting and notices can lead to excessive fines. These fines may be many times the actual cost of the permits that now must be pulled anyway.
  2. A cease and desist order may be issued that could end up with a court date to determine who was responsible for pulling the permits, why the responsible parties did not pull the permits, and who is going to pay the fines and job overrun costs. Sound messy? It is. In the final analysis, the property owner bears the burden either directly or indirectly. There are no winners when avoiding, delaying, or ignoring permitting requirements.
  3. Redo orders could be issued. Building inspectors must be confident that what is under the ground, behind walls, encased in conduit, or hidden under insulation is up to code. If they cannot see it, they will not approve it. The materials or job must be uncovered, exposed, or be redone. The direct and indirect costs of this delay can turn positive margins into real losses.
  4. Inspectors will lose confidence in the contractor, his subcontractors, and the entire project. Trust is foundational for a positive relationship between the inspector and the project manager. Building inspectors can make life miserable for general contractors, project managers, flippers, and property owners who subvert the system. This loss of trust can lead to project delays, cost overruns, and bankruptcy.
  5. Operating a job site without having pulled the correct permits first, can lead to criminal charges. Depending on the city and county, multiple permitting infractions can result in a misdemeanor and even a felony charge and conviction. General contractors who seek to skirt the system may lose their GC license, get sued, or even end up in jail.
  6. Aside from safety risks and hefty fines, projects that come to completion without the necessary permits can jeopardize coverage and elevate premium rates. This can also lower the resale value of the project and maybe even turn off prospective buyers.

If a general contractor offers to knock $50 to $100 off the price of the job for every permit the homeowner pulls, it could very well indicate that the GC does not have insurance. By pulling the permit himself, the homeowner is, in effect, declaring that the job is a DIY, and the homeowner is practically acting as the general contractor.

The irony in the situation is that the homeowner pays the same permit fee as the general contractor. So, there are no real savings on the project, and the homeowner is out the time, travel expense, and inconvenience of having to fight traffic to pull the permits.

When the homeowner pulls the permits in place of the general contractor, the homeowner assumes liability for any injuries that might occur on the job site. Roofing is a good example of how bad it can get. The insurance rates in this industry are very high. It makes it almost impossible to function legitimately. One Florida building inspector described a case of an uninsured worker who was injured when he fell off of a ladder. The worker sued the homeowner and won $65,000. The homeowner saved a few dollars on the job from the contractor, but the distraught homeowner eventually lost his home.

general contractor

General contractors should pull permits and file notifications before the project begins. They are best able to navigate the forms and any questions the inspectors might pose. Failure to do so could result in excess fines, project shutdown, license suspension, felony charges, and reduce the overall value of the project and drive away prospective buyers. In short, waiting to pull necessary permits until after a project begins could be catastrophic.

For more information about acquiring a Florida contractor’s license requirements or to learn about how to become a contractor, contact Contractors Reporting Services in Tampa, FL by calling (813) 932-5244.

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3 Reasons to File the Notice of Commencement

An article in the Florida Bar Journal entitled “Florida’s Unwieldy but Effective Construction Lien Law” drives home the importance of following lien law and filing the Notice of Commencement for every construction project.

The article states, “A glance at any urban skyline in Florida will confirm that construction is still big business. Look again, and you might also see that it’s chaotic and messy, characterized by one-off projects owned by short-lived one-asset entities, and built by a transient alliance of hundreds of vendors and thousands of workers. As a result, the money that is the lifeblood of a project travels a long and difficult path from the inevitable lender to a worker’s weekly paycheck or a supplier’s invoice. It doesn’t always make it, and its failure to do so underlies the reason for Florida’s construction lien law.”

general contractor

In a concerted effort to reduce or eliminate the “chaotic and messy,” Florida is serious about the enforcement of lien law and the filing of Notices of Commencement for construction projects. Property owners and general contractors must have their documentation in place, on time, and accurate. Having this information can prevent misunderstandings that cost the property owner or general contractor time and money. As the article states above, money is “the lifeblood of a project.” The Notice of Commencement is an important tool that helps keep people and money on track. Failing to file the Notice of Commencement may lead to some unintended negative consequences that could be very costly to the property owner and the success of the project.

What is the Notice of Commencement?

The Notice of Commencement (NOC) goes by other names such as the “Notice of Project Commencement” or the “Affidavit of Commencement.” The NOC officially states the project start date. Beginning on that date, the contractor, subcontractor, or support can commence providing labor and materials for the project.

The NOC also contains information that is useful for different stakeholders at various stages of the project. This information may include:

  • The property owner’s name and address
  • Property description and full address
  • A succinct scope of work
  • The general contractor’s name, address and contact information
  • The contractor’s surety information
  • Lender information
  • Details of the property owner’s legal representatives
  • NOC expiration date
  • The property owners’ signatures (helpful if payment issues arise)

For general contractors in Florida, this information, as well as the signatures from the property owners, can be used if payment issues arise. Also, pre-lien notices (such as the Notice to Owner and the mechanic’s liens) need this information. General contractors, subcontractors, and suppliers should record and archive information contained in the Notice of Commencement.

Who Files the Notice of Commencement?

Property owners or the general contractor file the NOC. It is served in conjunction with the commencement of the project. It must be officially recorded at the local state office where the project is based.

The property owners must sign the NOC. It must show their legal names. That person will also be required to sign the document. For full compliance, all property owners must provide their signatures.

Why File a Notice of Commencement?

Florida lien law requires a notice of commencement be filed. The Notice of Commencement announces the starting point for the mechanic’s lien process. The information found on the NOC will be used to file pre-lien notices by participants on the project because a Notice to Owner is a legal requirement in Florida.

The NOC also allows a general contractor in Florida (as well as subcontractors and suppliers) to schedule the filing of other relevant documentation. For example, the preliminary notice needs to be sent within the first 15 days of the project, and that 15-day count begins on the date recorded in the notice.

What Are the Consequences for Not Filing a NOC?

There are several negative consequences for failing to properly file the Notice of Commencement. These consequences can be punitive. Here are three:

  • In Florida, without a correctly filed NOC, the general contractor will not be able to secure a building permit.
  • Without a NOC, the property owner may face double payment if the contractor leaves before paying subcontractors and suppliers.
  • Without a NOC, the property owner will have violated Florida’s rulings on mechanics liens. This will then make the property owner responsible for all payments to stakeholders, even if the contractor has been paid in full.

As a point of information, a mechanic’s lien is a guarantee of payment to builders, contractors, and construction firms that build or repair structures. Mechanic’s liens also extend to suppliers of materials and subcontractors and cover building repairs as well. The lien ensures that the workmen are paid before anyone else in the event of a liquidation.

Florida law requires that a Notice of Commencement be filed by the property owner or the general contractor. The NOC contains important information that is useful for all involved parties in the project. A correctly filed NOC is required to obtain business permits and to start the mechanic’s lien process. Failure to comply could result in the property owner making double payments should the general contractor exit the project before it is completed and before all parties are paid.

general contractor

Contractors Reporting Services in Tampa, FL, understands the importance of filing all required paperwork correctly and on-time. They help general contractors and other construction stakeholders ensure that all the documentation for a project is in order, which ensures that clients can focus on the project rather than papers.

Whatever the general contractor’s needs, Contractors Reporting Services can provide expertise and assistance, from Florida contractors license requirements to business services.

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