House Bill hb1349

    Florida House of Representatives - 2002                HB 1349

        By Representative Peterman






  1                      A bill to be entitled

  2         An act relating to construction contracts;

  3         requiring a contract for construction of

  4         certain dwellings to contain an occupancy date

  5         and a penalty for delay of occupancy under

  6         certain circumstances; specifying requirements

  7         for the penalty; providing a minimum penalty

  8         for a contract that does not contain a penalty;

  9         providing exceptions; providing an effective

10         date.

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

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14         Section 1.  (1)  Each contract for construction of a

15  one-family or two-family dwelling shall contain a clause that

16  specifies the date by which a certificate of occupancy shall

17  be issued and shall contain an explicit penalty clause that

18  provides for liquidated damages for delay caused by the

19  builder and that specifies the amount of such damages for each

20  day that issuance of the certificate of occupancy is delayed

21  after the specified date.

22         (2)  The penalty clause may provide for actual damages

23  for delay caused by the builder in lieu of providing for

24  liquidated damages if the provision for such damages is

25  explicitly stipulated in the contract.

26         (3)  The amount of liquidated damages for delay caused

27  by the builder shall be $1,000 for each day that issuance of

28  the certificate of occupancy is delayed after the specified

29  date if either of the following applies:

30         (a)  The contract does not contain a penalty clause; or

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






    Florida House of Representatives - 2002                HB 1349

    788-118A-02






  1         (b)  The penalty clause does not contain either the

  2  amount of liquidated damages or a provision for actual damages

  3  in lieu of liquidated damages.

  4         (4)  This section does not apply to a contract that is

  5  entered into before the effective date of this section or a

  6  renewal of such contract.

  7         Section 2.  This act shall take effect January 1, 2003.

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10                          HOUSE SUMMARY

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      Requires each contract for construction of a residential
12    one-family or two-family dwelling to include an occupancy
      date and a penalty for failure to meet that date. See
13    bill for details.

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