Understanding the Operation and Enforcement of the Florida Construction Lien Law

Understanding the Operation and Enforcement of the Florida Construction Lien Law

  1. the nature of labor and services performed;
  2. the nature of labor and service to be performed;
  3. a description of materials furnished;
  4. the amount paid on account to date;
  5. the amount due;
  6. the amount to become due.

The failure of a lienor to respond in thirty (30) days after demand, or should the response be false, the lienor will be deprived of his lien rights.

Similarly, a lienor may request information and documents from the owner such as payment bonds, direct contracts with others for improvements to the property. Should the owner fail to respond within thirty (30) days, attorney’s fees will not be recoverable should the owner prevail against the lienor in a suit to foreclose a Claim Of Lien.

When the contractor requests final payment, including retainage, a Final Contractor’s Affidavit must be submitted. The Final Contractor’s Affidavit lists all money due to potential lienors that have not been paid. At that point, the owner may elect to demand in writing that the contractor pay the outstanding sums due or alternatively, pay the listed subcontractor a pro-rata portion (based upon the remaining contract balance) within ten (10) days from the date that the owner serves his written demand for payment to the contractor.

Conclusion
The Construction Lien Law is confusing and requires careful consideration when pursuing enforcement of a lien and paying those that furnish labor and materials to improve real property. As required by Chapter 713, Florida Statutes, timetables established for recording the Notice of Commencement, serving Notices to Owner, recording and foreclosing on a Claim of Lien must be followed for a lien may be declared invalid. By following the Construction Lien Law, owners can be assured that upon completion of construction and payment of the contract price, your property will be free and clear of all liens.