CODING: Words stricken are deletions; words underlined are additions.

House Bill 0973

Florida House of Representatives - 1997 HB 973 By Representative Livingston 1 A bill to be entitled 2 An act relating to construction dispute 3 resolution; creating s. 715.125, F.S.; 4 providing for a procedure whereby an owner and 5 a contractor who have a contract for the 6 improvement of real property for which a 7 construction lien is authorized under pt. I of 8 ch. 713, F.S., may agree on the final draw 9 request by the contractor; providing an 10 effective date. 11 12 Be It Enacted by the Legislature of the State of Florida: 13 14 Section 1. Section 715.125, Florida Statutes, is 15 created to read: 16 715.125 Dispute resolution.-- 17 (1) This section applies only to written contracts to 18 improve real property entered into after October 1, 1997, and 19 for which a construction lien is authorized under part I of 20 chapter 713. 21 (2) In order for a lienor to have the protections 22 afforded by this section, the contract between the owner of 23 the real property and the contractor (the direct contract) 24 must include in the contract a provision that refers to this 25 section. 26 (3) The owner of the real property being improved 27 under a contract governed by this section shall, within 15 28 days after receiving a final draw request from the contractor: 29 (a) Perform a walk-through with the contractor and 30 provide a complete punch list of unperformed or defective work 31 requiring repair. 1 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 973 549-133-97 1 (b) Provide to the contractor an itemized list of the 2 amounts that the owner believes are due to the contractor. Any 3 reductions, objections, or setoffs that the owner believes are 4 legally appropriate must be set forth in the itemized list. 5 (c) The owner must pay the full amount requested if 6 the owner agrees with the contractor's final pay request. If 7 the owner disagrees with the final amount requested by the 8 contractor, the owner must pay to the contractor the 9 undisputed amount and then must deposit into an escrow 10 account, with the mortgage lender or a title insurer or 11 attorney, the amount which is disputed. Such payments must be 12 made prior to the owner occupying the improvements to the real 13 property. 14 (d) If the owner takes possession of the improvements 15 without making the payments as described in this subsection, 16 the owner shall have waived his or her rights to recover 17 attorney's fees and costs, including the rights which were 18 derived under the contract, the rights derived from the 19 construction lien law, and from other legal sources, and shall 20 be required to pay the contractor's legal fees and interest at 21 the highest interest rate permitted by law if the contractor 22 prevails in the subsequent dispute. 23 24 In the event that the owner does not provide the punch list 25 described in this subsection and make the required payments as 26 described in this subsection, the owner shall also be deemed 27 to have waived his or her defenses related to extras and 28 change orders. 29 (4) This section does not affect the rights of the 30 parties under any other contract, statute, or warranty. 31 Section 2. This act shall take effect October 1, 1997. 2 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 973 549-133-97 1 ***************************************** 2 HOUSE SUMMARY 3 Provides a procedure whereby an owner and a contractor, 4 with respect to a contract for the improvement of real property for which a construction lien is authorized 5 under pt. I of ch. 713, F.S., can agree on the final draw request from the contractor. See bill for details. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 3