MANDATORY PROVISIONS FOR
RESIDENTIAL or COMMERCIAL CONTRACTS
The following are warnings that must appear in your contract paperwork:
- Revised Mandatory Provision
- The Lien Warning must be written as shown, and must appear on all residential contracts between you and the owner.
- The Construction Defect Warning must appear in every contract between you and the owner, both residential and commercial if you want to take advantage of the notice provisions in the law. If you are a contractor, the notice requirements the owner must follow will help you in your dispute – but only if it is in your contract.
- The Radon Warning must appear in the contract or sale documents if you are both building and selling the home to the owner. It usually is included in the closing documents by the bank or closing agent, but it never hurts to include it in your contract.
- The Florida Homeowners’ Construction Recovery Fund Notice must appear in every residential contract over $2,500.
- The Notice of Commencement has been revised and now must contain a warning to the Owner. The Owner is required to sign the Notice of Commencement - the contractor may not sign unless he or she is an Officer, Director, Partner or Manager of the Owner's Company. Further, the Notary Public format (jurat) has been changed.
- Oral Construction Contract Over $2,500 Warning - If you enter into a direct contract with the owner to perform construction services, AND YOU DON'T HAVE A WRITTEN CONTRACT, you cannot have any lien unless you have given this form to the Owner, the Owner has signed and dated it, and you (the Contractor) have a copy. As of July 1, 2007, even with an oral contract, you must provide this warning to the Owner - and have written proof that you have done so.
The Lien Warning:
Revised Mandatory Provisions for Residential Construction Contracts Effective 7/1/2007:
713.015 Mandatory provisions for direct contracts.
Any direct contract greater than $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:
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.
NOTE: This provision is not required if the owner of the property is a contractor licensed pursuant to Chapter 489 or is a developer, or if the direct contract is for $2,500 or less. If the contract is oral or implied, this warning must be provided in a separate document that is signed by the owner and dated.
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The Construction Defect Warning:
Another requirement is to include the ”Opportunity To Cure Construction Defect” notice. This notice must be included in ALL CONSTRUCTION CONTRACTS, RESIDENTIAL, COMMERCIAL, RENOVATIONS, REMODELS – IN SHORT – ALL CONTRACTS:
CHAPTER 558 NOTICE OF CLAIM
CHAPTER 558, FLORIDA STATUTES, CONTAINS IMPORTANT REQUIREMENTS YOU MUST FOLLOW BEFORE YOU MAY BRING ANY LEGAL ACTION FOR AN ALLEGED CONSTRUCTION DEFECT. SIXTY DAYS BEFORE YOU BRING ANY LEGAL ACTION, YOU MUST DELIVER TO THE OTHER PARTY TO THIS CONTRACT A WRITTEN NOTICE, REFERRING TO CHAPTER 558, OF ANY CONSTRUCTION CONDITIONS YOU ALLEGE ARE DEFECTIVE AND PROVIDE SUCH PERSON THE OPPORTUNITY TO INSPECT THE ALLEGED CONSTRUCTION DEFECTS AND TO CONSIDER MAKING AN OFFER TO REPAIR OR PAY FOR THE ALLEGED CONSTRUCTION DEFECTS. YOU ARE NOT OBLIGATED TO ACCEPT ANY OFFER WHICH MAY BE MADE. THERE ARE STRICT DEADLINES AND PROCEDURES UNDER THIS FLORIDA LAW WHICH MUST BE MET AND FOLLOWED TO PROTECT YOUR INTERESTS.
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The Radon Warning:
If you are both constructing and selling a residence, the following radon warning must appear somewhere in the contract paperwork:
RADON GAS WARNING
RADON GAS: RADON IS A NATURALLY OCCURRING RADIOACTIVE GAS THAT, WHEN IT HAS ACCUMULATED IN A BUILDING IN SUFFICIENT QUANTITIES, MAY PRESENT HEALTH RISKS TO PERSONS WHO ARE EXPOSED TO IT OVER TIME. LEVELS OF RADON THAT EXCEED FEDERAL AND STATE GUIDELINES HAVE BEEN FOUND IN BUILDINGS IN FLORIDA. ADDITIONAL INFORMATION REGARDING RADON AND RADON TESTING MAY BE OBTAINED FROM YOUR COUNTY HEALTH DEPARTMENT.
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The Florida Homeowners’ Construction Recovery Fund Notice:
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:
Executive Director: G.W. Harrell
1940 North Monroe Street
Tallahassee, FL 32399-1039
Phone: 850.487.1395
Email to CILB: Call.Center@dbpr.state.fl.us
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