Senate Bill sb0212c1

    Florida Senate - 2002                            CS for SB 212

    By the Committee on Commerce and Economic Opportunities; and
    Senator Holzendorf




    310-1748-02

  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 an effective date.

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

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

14  one-family or two-family dwelling must contain a clause that

15  specifies the date by which a certificate of occupancy will be

16  issued and must contain an explicit penalty clause that

17  provides for liquidated damages for delay caused by the

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

19  day that issuance of the certificate of occupancy is delayed

20  after the specified date.

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

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

23  liquidated damages if the provision for such damages is

24  explicitly stipulated in the contract.

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

26  by the builder shall be $100 for each day that issuance of the

27  certificate of occupancy is delayed after the specified date

28  if either of the following apply:

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

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    Florida Senate - 2002                            CS for SB 212
    310-1748-02




  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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  9          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
10                         Senate Bill 212

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12  The committee substitute replaces the original bill and
    requires construction contracts for one-family and two-family
13  dwellings to specify the date by which a certificate of
    occupancy will be issued and to provide for liquidated damages
14  for each day that occupancy is delayed by the builder after
    the contracted date. If a contract does not specify an amount
15  of liquidated damages, the committee substitute establishes a
    default amount at $100 for each day that occupancy is delayed.
16  The committee substitute also allows contracts to provide
    actual damages in lieu of liquidated damages.
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