The Ins and Outs of Florida Construction Lien Law

Per the Florida Construction Lien Law, any company who works on a property or provides materials (aka lienors) and are not paid in full have a right to enforce their claim for payment against the property. This claim is known as a construction lien. If a contractor fails to pay subcontractors or material suppliers, those who are owed money may look to the property to secure payment, even if the contractor has been paid in full.

Notice of Commencement
The first notice required is the Notice of Commencement (N.O.C.) which notes the intent to begin improvements, the legal description of the property, description of the work and the amount of bond, if any. It also identifies the property owner, contractor, surety, lender and other pertinent information. Failure to record a Notice of Commencement or incorrect information on the N.O.C. could contribute to the owner having to pay twice for the same work or materials. The owner has sole responsibility for preparing and recording the notice. If an owner fails to properly record a Notice of Commencement, liens will have priority in the order in which they are recorded.

There are three major deadlines that must be complied with in order to protect and perfect lien rights in Florida. Those deadlines involve serving the preliminary notice, recording a claim of lien and filing suit to foreclose a claim of lien.

Notice to Owner
Prior to filing a lien, a Notice to Owner must be served to the owner. The Notice to Owner must state the lienor’s name and address and a description of the real property and the nature of the services or materials being supplied. The Notice to Owner must be served prior to or within 45 days of commencing work or providing services or materials. A lien cannot be enforced unless the lienor has served the Notice to Owner within the legal time frame.

Partial and Final Releases
The owner can stipulate in the contractual agreement with the contractor that the contractor must provide all releases of lien. Partial releases should be required for monthly draws and a final release upon final payment. Subcontractors on Hennessy Construction Services’ projects are required to provide releases from any sub-subcontractors or suppliers that have filed a Notice to Owner under them. Statutory release forms have been added to the laws governing private and public construction projects. Although the law permits a lienor to use different forms of their own choosing, it prohibits anyone from forcing a lienor to use a different form.

Who can Claim a Lien on Property?
Contractors, laborers, material suppliers, subcontractors and professionals such as architects, designers, engineers or land surveyors all have the right to file a claim of lien for work or materials. The Claim of Lien may be recorded at any time during the progress of work, but must be recorded no later than 90 days from the date the last materials, labor or services were provided. The Claim of Lien must also be served to the owner and any other proper parties within 15 days of its recording.

Contesting a Lien
A lien is valid for one year, unless a lienor files a lawsuit to enforce the lien prior to the expiration of the year. An owner has a right to file a Notice of Contest of Lien during the one year period. Upon the filing of a Notice of Contest of Lien, a lienor must file a lawsuit to enforce the lien within 60 days. Failure to timely file a lawsuit renders the lien invalid.

This is a brief overview of Florida’s Construction Lien Law. The Construction Lien Law is complex and cannot be covered completely in this document. If you have any questions or whenever a specific problem arises consult an attorney.

Posted by: Carla Olstrom

As our Accounts Payable Administrator (a.k.a. – The Check Lady), Carla has been fielding questions on Florida Lien Law on a near daily basis during her six years with Hennessy. Her attention to detail and “by the book” adherence to Florida lien law helps protect Hennessy, our clients, and subcontractors from any possible pitfalls. She balances this hectic workload by spending her free time with her large group of family and friends.