House Bill 0715

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    Florida House of Representatives - 2000                 HB 715

        By Representative J. Miller






  1                      A bill to be entitled

  2         An act relating to prompt payment and retainage

  3         reform; amending s. 218.72, F.S.; redefining

  4         the terms "purchase" and "construction

  5         services" and defining the terms "payment

  6         request" and "agent" for the purpose of the

  7         Florida Prompt Payment Act; amending s. 218.73,

  8         F.S.; providing for timely payment for

  9         nonconstruction services; amending s. 218.735,

10         F.S.; revising language with respect to timely

11         payment for purchases of construction services;

12         providing for timely payment of undisputed

13         portions of a payment request or invoice;

14         providing for an interest rate on payments due

15         from a local government not made within a

16         certain time period; amending s. 218.74, F.S.;

17         revising language with respect to procedures

18         for calculation of payment due dates; amending

19         s. 218.75, F.S.; revising language with respect

20         to mandatory interest; amending s. 218.76,

21         F.S.; revising language with respect to

22         improper invoices and resolution of disputes;

23         providing for the recovery of court costs and

24         attorney's fees under certain circumstances;

25         creating s. 255.049, F.S.; providing for the

26         retention of funds on public construction

27         contracts under certain circumstances; amending

28         s. 715.12, F.S.; revising language with respect

29         to the Construction Contract Prompt Payment

30         Law; providing an effective date.

31

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  1  Be It Enacted by the Legislature of the State of Florida:

  2

  3         Section 1.  Subsections (5) and (7) of section 218.72,

  4  Florida Statutes, are amended, and subsections (8) and (9) are

  5  added to said section, to read:

  6         218.72  Definitions.--As used in this part:

  7         (5)  "Purchase" means the purchase of goods, or

  8  services, or construction services, the purchase or lease of

  9  personal property, or the lease of real property by a local

10  governmental entity.

11         (7)  "Construction services" means all labor, services,

12  and materials provided performed in connection with the

13  construction, alteration, repair, demolition, reconstruction,

14  or any other improvements to real property that require a

15  license under parts I and II of chapter 489.

16         (8)  "Payment request" means a contractor's written

17  request for payment for labor, services, and materials

18  provided through a date certain.

19         (9)  "Agent" means project architect, project engineer,

20  or any other agency or person acting on behalf of the local

21  governmental entity.

22         Section 2.  Section 218.73, Florida Statutes, is

23  amended to read:

24         218.73  Timely payment for nonconstruction

25  services.--The time at which payment is due for a purchase

26  other than construction services by a local governmental

27  entity, except for the purchase of construction services, is

28  due must be calculated from:

29         (1)  The date on which a proper invoice is received by

30  the chief disbursement officer of the local governmental

31  entity after approval by the governing body, if required; or

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  1         (2)  If a proper invoice is not received by the local

  2  governmental entity, the date:

  3         (a)  On which delivery of personal property is accepted

  4  by the local governmental entity;

  5         (b)  On which services are completed;

  6         (c)  On which the rental period begins; or

  7         (d)  On which the local governmental entity and vendor

  8  agree in a contract that provides dates relative to payment

  9  periods;

10

11  whichever date is latest.

12         Section 3.  Section 218.735, Florida Statutes, is

13  amended to read:

14         218.735  Timely payment for purchases of construction

15  services.--

16         (1)  The due date for payment for the purchase of

17  construction services by a local governmental entity is

18  determined as follows:

19         (a)  If the project architect or project engineer must

20  approve the invoice prior to the invoice being submitted to

21  the local governmental entity, payment is due 20 business days

22  after the date on which the payment request or architect or

23  engineer approves the invoice and the payment request or

24  invoice is stamped as received as provided in s. 218.74(1).

25         (b)  If the project architect or project engineer need

26  not approve the invoice which is submitted by the contractor,

27  payment is due 20 business days after the date on which the

28  invoice is stamped as received as provided in s. 218.74(1).

29         (2)  The local governmental entity may reject the

30  payment request or invoice within 10 20 business days after

31  the date on which the payment request or invoice is stamped as

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  1  received as provided in s. 218.74(1).  The rejection must be

  2  written and must specify the deficiency in the payment request

  3  or invoice and the action necessary to make the payment

  4  request or invoice proper.

  5         (3)  If a payment request or an invoice is rejected

  6  under subsection (2) or this subsection and the contractor

  7  submits a corrected payment request or invoice which corrects

  8  the deficiency specified in writing by the local governmental

  9  entity, the corrected payment request or invoice must be paid

10  within 10 or rejected on the later of:

11         (a)  Ten business days after the date the corrected

12  payment request or invoice is stamped as received as provided

13  in s. 218.74(1); or

14         (b)  If the governing body is required by ordinance,

15  charter, or other law to approve or reject the corrected

16  invoice, the first business day after the next regularly

17  scheduled meeting of the governing body held after the

18  corrected invoice is stamped as received as provided in s.

19  218.74(1).

20         (4)  If a dispute between the local governmental entity

21  and the contractor cannot be resolved by the procedure in

22  subsection (3), the dispute must be resolved in accordance

23  with the dispute resolution procedure prescribed in the

24  construction contract or in any applicable ordinance.  In the

25  absence of a prescribed procedure, the dispute must be

26  resolved by the procedure specified in s. 218.76(2).

27         (5)  If a local governmental entity disputes a portion

28  of a payment request or an invoice, the undisputed portion

29  shall be paid timely, in accordance with subsection (1). The

30  payment time periods provided in this section for construction

31  services purchased by a local governmental entity shall not

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  1  affect contractual provisions or contractual covenants of a

  2  local governmental entity in effect on September 30, 1995.

  3         (6)  All payments due from a local governmental entity

  4  and not made within the time periods period specified by this

  5  section shall bear interest at the rate of 1 percent per

  6  month, or the rate specified by contract, whichever is greater

  7  as specified in s. 218.74(4).

  8         Section 4.  Section 218.74, Florida Statutes, is

  9  amended to read:

10         218.74  Procedures for calculation of payment due

11  dates.--

12         (1)  Each local governmental entity shall establish

13  procedures whereby each payment request or invoice received by

14  the local governmental entity is marked as received on the

15  date on which it is delivered to an agent or employee of the

16  local governmental entity or of a facility or office of the

17  local governmental entity.

18         (2)  The payment due date for a local governmental

19  entity for the purchase of goods or services other than

20  construction services is 45 days after the date specified in

21  s. 218.73.  The payment due date for the purchase of

22  construction services is specified in s. 218.735.

23         (3)  If the terms under which a purchase is made allow

24  for partial deliveries and a payment request or proper invoice

25  is submitted for a partial delivery, the time for payment for

26  the partial delivery must be calculated from the time of the

27  partial delivery and the submission of the payment request or

28  invoice in the same manner as provided in s. 218.73 or s.

29  218.735.

30         (4)  All payments, other than payments for construction

31  services, due from a local governmental entity and not made

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  1  within the time specified by this section bear interest from

  2  30 days after the due date at the rate of 1 percent per month

  3  on the unpaid balance. The vendor must invoice the local

  4  governmental entity for any interest accrued in order to

  5  receive the interest payment.  Any overdue period of less than

  6  1 month is considered as 1 month in computing interest.

  7  Unpaid interest is compounded monthly.  With respect to each

  8  past due payment, interest ceases to accrue after interest on

  9  that payment has accrued for 12 months. For the purposes of

10  this section, the term "1 month" means a period beginning on

11  any day of one month and ending on the same day of the

12  following month.

13         Section 5.  Section 218.75, Florida Statutes, is

14  amended to read:

15         218.75  Mandatory interest.--No contract between a

16  local governmental entity and a vendor or a provider of

17  construction services shall prohibit the collection of vendor

18  from invoicing the local governmental entity for late payment

19  interest charges allowable under this part.

20         Section 6.  Section 218.76, Florida Statutes, is

21  amended to read:

22         218.76  Improper invoice; resolution of disputes.--

23         (1)  In any case in which an improper invoice is

24  submitted by a vendor, the local governmental entity shall,

25  within 10 days after the improper invoice is received by it,

26  notify the vendor that the invoice is improper and indicate

27  what corrective action on the part of the vendor is needed to

28  make the invoice proper.

29         (2)  In the event a dispute occurs between a vendor and

30  a local governmental entity concerning payment of a payment

31  request or an invoice, such disagreement shall be finally

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  1  determined by the local governmental entity as provided in

  2  this section.  Each local governmental entity shall establish

  3  a dispute resolution procedure to be followed by the local

  4  governmental entity in cases of such disputes.  Such procedure

  5  shall provide that proceedings to resolve the dispute shall be

  6  commenced not later than 45 days after the date on which the

  7  payment request or proper invoice was received by the local

  8  governmental entity and shall be concluded by final decision

  9  of the local governmental entity not later than 60 days after

10  the date on which the payment request or proper invoice was

11  received by the local governmental entity.  Such procedures

12  shall not be subject to chapter 120, and such procedures shall

13  not constitute an administrative proceeding which prohibits a

14  court from deciding de novo any action arising out of the

15  dispute.  If the dispute is resolved in favor of the local

16  governmental entity, then interest charges shall begin to

17  accrue 10 15 days after the local governmental entity's final

18  decision.  If the dispute is resolved in favor of the vendor,

19  then interest shall begin to accrue as of the original date

20  the payment became due.

21         (3)  In an action to recover amounts due under this

22  section and ss. 218.70-218.75, the prevailing party shall be

23  entitled to recover court costs and attorney's fees at trial

24  and on appeal.

25         Section 7.  Section 255.049, Florida Statutes, is

26  created to read:

27         255.049  Retention of funds on public construction

28  projects.--

29         (1)  This section shall apply to all public

30  construction projects for which a payment and performance bond

31  is provided pursuant to s. 255.05. This section shall not

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  1  apply to contracts with the Department of Transportation for

  2  road and bridge construction and maintenance, which are

  3  governed by chapter 337.

  4         (2)  If a project is exempt from the bond requirements

  5  of s. 255.05, the contractor may elect to provide a payment

  6  and performance bond, in which event the provisions of this

  7  section shall apply.

  8         (3)  For purposes of this section, "payment request"

  9  means a contractor's written request for payment for labor,

10  services, and materials provided through a date certain.

11         (4)  When a governmental entity makes progress payments

12  under a construction contract, such progress payments shall be

13  made monthly, or at such more frequent intervals as stipulated

14  in the contract, and shall be based on the total value of the

15  work that the contractor has performed to the date of the

16  payment request, less any amounts previously paid, and less

17  any amount to be retained, which shall not exceed 5 percent of

18  the amount to be paid pursuant to the payment request.

19         (5)  Any amounts retained by the governmental entity

20  pursuant to subsection (4) shall be released as follows:

21         (a)  Each individual subcontract shall be considered a

22  separate division of the contract for purposes of release of

23  retention, and the governmental entity shall release all

24  retained amounts for that subcontract within 90 days after the

25  date a notice of completion has been received and accepted. A

26  notice of completion shall be deemed to have been accepted if

27  that phase of the project must be complete in order to

28  commence a subsequent phase of the project and the subsequent

29  phase of the project has been commenced.

30         (b)  Final payment of all amounts retained under the

31  contract shall be due from the governmental entity to the

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  1  contractor within 30 days after final acceptance of the

  2  project by the governmental entity. The issuance of an

  3  architect's or engineer's certificate of substantial

  4  completion, the issuance of a certificate of occupancy, or the

  5  actual use of the property by the governmental entity or its

  6  lessee shall be deemed final acceptance of the project.

  7         (c)  For construction projects that are to be built in

  8  phases, this subsection applies to each phase of the total

  9  project. The contract between the governmental entity and the

10  contractor may specify a shorter time period for disbursing

11  all or any portion of the final payment and the retainage.

12         (6)  A prime contractor shall retain no greater

13  percentage from a subcontractor than the governmental entity

14  retains from the prime contractor, and shall release all

15  retained amounts to the subcontractor within 10 days after

16  receiving the retained amounts from the governmental entity. A

17  subcontractor shall retain no greater percentage from a

18  sub-subcontractor than the contractor retains from the

19  subcontractor, and shall release all retained amounts to the

20  sub-subcontractor within 10 days after receiving the retained

21  amounts from the contractor.

22         (7)  Any payment of retainage provided for in this

23  section which has not been made within 10 days after the due

24  date specified in this section shall bear interest at the

25  highest rate allowed by law, calculated from the date the

26  payment was due until the date the payment is made. This late

27  payment interest penalty cannot be waived, by contract or

28  otherwise, prior to the date of payment.

29         (8)  The provisions of this section are not intended to

30  impair the rights of any governmental entity, contractor, or

31  subcontractor, in the event of a good faith dispute, to

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  1  withhold payment without incurring any obligation to pay a

  2  late payment interest penalty. The retaining party shall

  3  notify the party whose retainage is being withheld, in

  4  writing, of the amount of payment withheld and the reason for

  5  nonpayment. For purposes of this section, a "good faith

  6  dispute" means a documented dispute concerning:

  7         (a)  Unsatisfactory job progress;

  8         (b)  Defective work not remedied;

  9         (c)  Third party claims filed or reasonable evidence

10  that claims will be filed;

11         (d)  Failure to make timely payments for labor,

12  equipment, or materials;

13         (e)  Damage to the governmental entity, the prime

14  contractor, or a subcontractor; or

15         (f)  Reasonable evidence that the contract or

16  subcontract cannot be completed for the unpaid balance of the

17  contract or subcontract.

18         (9)  Retainage shall not be held to secure the

19  performance of work which is covered under a warranty provided

20  by a contractor, a subcontractor, a sub-subcontractor, or a

21  manufacturer.

22         (10)  In any action for payment of retained amounts due

23  under this section, the prevailing party shall be entitled to

24  recover court costs and attorney's fees at trial and on

25  appeal.

26         Section 8.  Section 715.12, Florida Statutes, is

27  amended to read:

28         715.12  Construction Contract Prompt Payment Law.--

29         (1)  This section may be cited as the "Construction

30  Contract Prompt Payment Law."

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  1         (2)  This section applies only to written contracts to

  2  improve real property entered into after December 31, 1992,

  3  and for which a construction lien is authorized under part I

  4  of chapter 713.

  5         (3)  The terms used in this section have the same

  6  definitions as the terms defined in s. 713.01.  As used in

  7  this section, the term:

  8         (a)  "Obligor" means an owner, contractor,

  9  subcontractor, or sub-subcontractor who has an obligation to

10  make payments under a contract that is subject to this

11  section.

12         (b)  "Obligee" means a contractor, subcontractor,

13  sub-subcontractor, or materialman who is entitled to receive

14  payments under a contract that is subject to this section.

15         (c)  "Chain of contracts" means the contracts between

16  the owner and the contractor, the contractor and any

17  subcontractor or materialman, the subcontractor and any

18  sub-subcontractor or materialman, and the sub-subcontractor

19  and any materialman.

20         (d)  "Payment request" means an obligee's written

21  request for payment for labor, services, and materials

22  provided through a date certain.

23         (4)  Payment is due from an obligor to must pay an

24  obligee with whom the obligor has a contract within 10 days

25  after the date when all of the following events have occurred:

26         (a)  The obligee is entitled to a payment at the time

27  and under the terms specified in the contract between the

28  obligor and the obligee, and the obligee has furnished the

29  obligor with a written payment request for payment; and

30         (b)  The obligor, except an owner, has been paid for

31  the obligee's labor, services, or materials described in the

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  1  obligee's request for payment by the person immediately above

  2  the obligor in the chain of contracts; and

  3         (c)  The obligee has furnished the obligor with all

  4  affidavits or waivers required for the owner to make proper

  5  payments under s. 713.06. This provision shall not be

  6  interpreted to require an obligee to waive lien rights or bond

  7  rights in advance of receiving payment.

  8         (5)(a)  Any payment due under the provisions of

  9  subsection (4), excluding any amounts withheld pursuant to

10  subsection (7), shall bear interest at the rate of 1 percent

11  per month or the rate specified in the contract, whichever is

12  greater specified in s. 55.03, computed beginning on the 10th

13  14th day after payment is due pursuant to subsection (4).

14         (b)  If the payment request for payment is incomplete

15  or contains an error, the obligor has 10 14 days within which

16  to return the payment request for payment to the obligee for

17  completion or correction. The obligor must specify in writing

18  the reasons for the return of the payment request and the

19  action necessary to correct the payment request for payment.

20  If the obligor does not return the payment request for

21  payment, together with the specified reasons within 10 days

22  after the obligor's receipt of the payment refusal the time

23  provided in paragraph (a), the obligor must pay interest as

24  provided in paragraph (a).  If the obligor does return the

25  request for payment within the time provided in this paragraph

26  (a), the time period for computing interest begins to run on

27  the 10th 14th day after the obligor receives a corrected

28  payment request which corrects the deficiency specified in

29  writing by the obligor, request for payment is completed or

30  corrected and payment is otherwise due pursuant to subsection

31  (4).

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  1         (6)(a)  The right to receive interest on a payment

  2  under this section is not an exclusive remedy.  This section

  3  does not modify the remedies available to any person under the

  4  terms of a contract or under any other statute.  This section

  5  does not modify the rights of any person to recover

  6  prejudgment interest awarded to the prevailing party in any

  7  civil action or arbitration case.  During the period that

  8  interest accrues under this section, the interest rate shall

  9  be the rate specified in s. 55.03 or the rate specified in the

10  contract, whichever is greater. A person shall not be entitled

11  to receive both the contract interest and the statutory

12  interest specified in this section.

13         (b)  This section does not create a separate cause of

14  action other than for the collection of interest due pursuant

15  to subsection (5).

16         (b)(c)  If an obligor pays an amount less than the full

17  amount due under the contract between the obligor and the

18  obligee, the obligor may designate the portion of the labor,

19  services, or materials to which the payment applies.  In the

20  absence of such a designation by the obligor, the obligee may

21  apply the payment in any manner the obligee deems appropriate.

22  This paragraph does not modify the obligation to make or

23  demand a designation under the provisions of s. 713.14.

24         (c)(d)  An obligee may not waive the right to receive

25  interest before a payment is due under a contract subject to

26  this section. An obligee may waive the interest due on any

27  late payment on or after the date the payment is due under

28  subsection (4).

29         (d)(e)  Unless the contract specifically provides to

30  the contrary, A dispute between an obligor and obligee does

31  not permit the obligor to withhold any payment due under this

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  1  section, including payment of retainage, payment from the

  2  obligee or from any other obligee for labor, services, or

  3  materials provided to the obligor and which are not subject to

  4  or affected by the dispute.

  5         (e)  An obligor shall not withhold any payment due

  6  under this section, including payment of retainage, for work

  7  which is covered under a warranty of the obligee, any other

  8  obligee, or a manufacturer.

  9         (7)(a)  An owner and a contractor may agree to a

10  provision that allows the owner to withhold a portion of each

11  progress payment, which shall not exceed 5 percent of the

12  amount to be paid pursuant to the payment request until

13  substantial completion of the entire project.

14         (b)  Any amounts retained by the owner pursuant to

15  subsection (a) shall be released as follows:

16         1.  Each individual subcontract shall be considered a

17  separate division of the contract for purposes of release of

18  retention, and the owner shall release all retained amounts

19  for that subcontract within 20 days after the date a notice of

20  completion has been received and accepted. A notice of

21  completion shall be deemed to have been accepted if that phase

22  of the project must be complete in order to commence a

23  subsequent phase of the project and the subsequent phase of

24  the project has been commenced.

25         2.  The owner shall pay the contractor the balance of

26  the contract price, including the amounts withheld from the

27  progress payments, within 20 14 days after final acceptance of

28  the project by the owner. The issuance of an architect's or

29  engineer's certificate of substantial completion, the issuance

30  of a certificate of occupancy, or the actual use of the

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  1  property by the owner or its lessee shall be deemed final

  2  acceptance of the project.

  3         (c)  A prime contractor shall retain no greater

  4  percentage from a subcontractor than the owner retains from

  5  the prime contractor and shall release all retained amounts to

  6  the subcontractor within 10 days after receiving the retained

  7  amounts from the owner. A subcontractor shall retain no

  8  greater percentage from a sub-subcontractor than the

  9  contractor retains from the subcontractor and shall release

10  all retained amounts to the sub-subcontractor within 10 days

11  after receiving the retained amounts from the contractor.

12         (d)  Any payment of retainage provided for in this

13  section which has not been made within 10 days after the due

14  date specified in this subsection shall bear interest at the

15  highest rate allowed by law, calculated from the date the

16  payment was due until the date the payment is made. This late

17  payment interest penalty cannot be waived, by contract or

18  otherwise, prior to the date of payment. any of the following

19  events occur.

20         1.  Pursuant to the terms of the contract, an architect

21  or engineer certifies that the project is substantially

22  complete and, within the time provided in the contract between

23  the owner and the contractor, the owner submits a written

24  punchlist to the contractor and the contractor substantially

25  completes all of the items on the punchlist.

26         2.  The issuance of a certificate of occupancy for the

27  project, and within the time provided in the contract between

28  the owner and the contractor, the owner submits a written

29  punchlist to the contractor and the contractor substantially

30  completes all of the items on the punchlist.

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  1         3.  The owner or a tenant of the owner takes possession

  2  of the construction project and, within the time provided in

  3  the contract between the owner and the contractor, the owner

  4  submits a written punchlist to the contractor and the

  5  contractor substantially completes all of the items on the

  6  punchlist.

  7

  8  Any funds retained by the owner beyond the time period

  9  specified in this subsection shall accrue interest at the rate

10  specified in subsection (5), computed from the date the

11  payment is due to the date the payment is received by the

12  contractor.  If the contract between the owner and the

13  contractor does not provide a time period for the owner to

14  submit a written punchlist to the contractor, the time period

15  shall be 15 days from the issuance of the certificate of

16  substantial completion, the issuance of the certificate of

17  occupancy, or the date the owner or the owner's tenant takes

18  possession of the project, whichever first occurs.  If no

19  written punchlist is given to the contractor within the time

20  provided in this subsection, interest begins to accrue 14 days

21  after the issuance of the certificate of substantial

22  completion, the issuance of the certificate of occupancy, or

23  the date the owner or the owner's tenant takes possession of

24  the project, whichever first occurs.

25         (e)  For construction projects that are to be built in

26  phases, this subsection applies to each phase of the total

27  project. The contract between the owner and the contractor may

28  specify a shorter time period for disbursing all or any

29  portion of the final payment and the retainage.

30         (b)  Except as provided in paragraph (a), an obligor

31  and obligee may agree to a provision that allows the obligor

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    Florida House of Representatives - 2000                 HB 715

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  1  to withhold a portion of each progress payment until

  2  completion of the entire project.  The amounts withheld shall

  3  bear interest 14 days after payment of such amounts are due

  4  under the terms of the contract between the obligor and

  5  obligee and the other requirements of subsection (4) have been

  6  satisfied.

  7         (f)(c)  An obligee may, from time to time, withdraw all

  8  or any portion of the amount retained from progress payments

  9  upon depositing with the obligor:

10         1.  United States Treasury bonds, United States

11  Treasury notes, United States Treasury certificates of

12  indebtedness, or United States Treasury bills;

13         2.  Bonds or notes of the State of Florida; or

14         3.  Certificates of deposit, within the insured limits,

15  from a state or national bank or state or federal savings and

16  loan association authorized to do business in this state.

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18  Amounts may not be withdrawn in excess of the market value of

19  the securities listed in subparagraphs 1., 2., and 3. at the

20  time of such withdrawal or in excess of the par value of such

21  securities, whichever is less.  The obligee shall execute and

22  deliver all documents reasonably required to allow the obligor

23  to document the transfer and the obligee shall pay any

24  recording or registration costs incurred by the obligor in

25  connection with the transfer. The obligor shall pay the

26  obligee any interest or income earned on the securities so

27  deposited within 30 days after the date such interest or

28  income is received by the obligor.  If the deposit is in the

29  form of coupon bonds, the obligor shall deliver each coupon to

30  the obligee within 30 days after the date the coupon matures.

31  An obligee may withdraw funds retained from progress payments

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






    Florida House of Representatives - 2000                 HB 715

    721-121-00






  1  only to the extent the obligor has withdrawn such funds for

  2  the obligee's labor, services, or materials from the person

  3  immediately above the obligor in the chain of contracts.

  4         (8)  The provisions of this section are not intended to

  5  impair the rights of any obligor, in the event of a good faith

  6  dispute, to withhold payment from an obligee without incurring

  7  any obligation to pay a late payment interest penalty. The

  8  obligor shall notify the obligee in writing of the amount of

  9  payment withheld and the reason for nonpayment. The time for

10  payment of the amounts withheld, and the subsequent

11  calculation of time periods for accrual of late payment

12  interest penalties on the amounts, shall be calculated from

13  the date the obligee notifies the obligor in writing that the

14  reason for the good faith dispute has been cured and payment

15  is due. For purposes of this section, a "good faith dispute"

16  means a documented dispute concerning:

17         (a)  Unsatisfactory job progress;

18         (b)  Defective work not remedied;

19         (c)  Third party claims filed or reasonable evidence

20  that claims will be filed;

21         (d)  Failure to make timely payments for labor,

22  equipment, or materials;

23         (e)  Damage to the owner, the prime contractor, or a

24  subcontractor; or

25         (f)  Reasonable evidence that the contract or

26  subcontract cannot be completed for the unpaid balance of the

27  contract or subcontract.

28         (9)  In an action for payment of amounts due under this

29  section, the prevailing party shall be entitled to recover

30  court costs and attorney's fees at trial and on appeal.

31

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






    Florida House of Representatives - 2000                 HB 715

    721-121-00






  1         Section 9.  This act shall take effect July 1, 2000,

  2  and shall apply to construction contracts entered into on or

  3  after the effective date.

  4

  5            *****************************************

  6                          HOUSE SUMMARY

  7
      Revises the Florida Prompt Payment Act to:
  8         1.  Redefine the terms "purchase" and "construction
      services" and define the terms "payment request" and
  9    "agent."
           2.  Generally provide for timely payment for
10    construction service.

11
      Provides for the retention of funds on public
12    construction contracts under described circumstances.

13
      Revises language with respect to the Construction
14    Contract Prompt Payment Law.

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      See bill for details.
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