| 1 | Representative Reagan offered the following: |
| 2 |
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| 3 | Amendment (with title amendment) |
| 4 | Remove everything after the enacting clause and insert: |
| 5 | Section 1. Section 218.70, Florida Statutes, is amended to |
| 6 | read: |
| 7 | 218.70 Popular name Short title.--This part may be known |
| 8 | by the popular name cited as the "Local Government Florida |
| 9 | Prompt Payment Act." |
| 10 | Section 2. Subsections (2), (6), and (7) of section |
| 11 | 218.72, Florida Statutes, are amended, and subsection (10) is |
| 12 | added to that section, to read: |
| 13 | 218.72 Definitions.--As used in this part: |
| 14 | (2) "Local governmental entity" means a county or |
| 15 | municipal government, school board, school district, authority, |
| 16 | special taxing district, other political subdivision, or any |
| 17 | office, board, bureau, commission, department, branch, division, |
| 18 | or institution thereof or any project supported by county or |
| 19 | municipal funds. |
| 20 | (6) "Vendor" means any person who sells goods or services, |
| 21 | sells or leases personal property, or leases real property |
| 22 | directly to a local governmental entity. The term includes any |
| 23 | person who provides waste-hauling services to residents or |
| 24 | businesses located within the boundaries of a local government |
| 25 | pursuant to a contract or local ordinance. |
| 26 | (7) "Construction services" means all labor, services, and |
| 27 | materials provided in connection with the construction, |
| 28 | alteration, repair, demolition, reconstruction, or any other |
| 29 | improvements to real property that require a license under parts |
| 30 | I and II of chapter 489. |
| 31 | (10) "Contractor" or "provider of construction services" |
| 32 | means any person who contracts directly with a local |
| 33 | governmental entity to provide construction services. |
| 34 | Section 3. Subsection (6) of section 218.735, Florida |
| 35 | Statutes, is amended, present subsection (7) of that section is |
| 36 | redesignated as subsection (9), and new subsections (7) and (8) |
| 37 | are added to that section, to read: |
| 38 | 218.735 Timely payment for purchases of construction |
| 39 | services.-- |
| 40 | (6) When a contractor receives payment from a local |
| 41 | governmental entity for labor, services, or materials furnished |
| 42 | by subcontractors and suppliers hired by the contractor, the |
| 43 | contractor shall remit payment due to those subcontractors and |
| 44 | suppliers within 10 15 days after the contractor's receipt of |
| 45 | payment. When a subcontractor receives payment from a contractor |
| 46 | for labor, services, or materials furnished by subcontractors |
| 47 | and suppliers hired by the subcontractor, the subcontractor |
| 48 | shall remit payment due to those subcontractors and suppliers |
| 49 | within 7 15 days after the subcontractor's receipt of payment. |
| 50 | Nothing herein shall prohibit a contractor or subcontractor from |
| 51 | disputing, pursuant to the terms of the relevant contract, all |
| 52 | or any portion of a payment alleged to be due to another party. |
| 53 | In the event of such a dispute, the contractor or subcontractor |
| 54 | may withhold the disputed portion of any such payment if the |
| 55 | contractor or subcontractor notifies the party whose payment is |
| 56 | disputed, in writing, of the amount in dispute and the actions |
| 57 | required to cure the dispute. The contractor or subcontractor |
| 58 | must pay all undisputed amounts due within the time limits |
| 59 | imposed by this section. |
| 60 | (7)(a) Each contract for construction services between a |
| 61 | local governmental entity and a contractor must provide for the |
| 62 | development of a list of items required to render complete, |
| 63 | satisfactory, and acceptable the construction services purchased |
| 64 | by the local governmental entity. The contract must specify the |
| 65 | process for the development of the list, including |
| 66 | responsibilities of the local governmental entity and the |
| 67 | contractor in developing and reviewing the list and a reasonable |
| 68 | time for developing the list, as follows: |
| 69 | 1. For construction projects with an estimated cost of |
| 70 | less than $10 million, within 30 calendar days after reaching |
| 71 | substantial completion of the construction services purchased as |
| 72 | defined in the contract, or, if not defined in the contract, |
| 73 | upon reaching beneficial occupancy or use; or |
| 74 | 2. For construction projects with an estimated cost of $10 |
| 75 | million or more, within 30 calendar days, unless otherwise |
| 76 | extended by contract not to exceed 60 calendar days, after |
| 77 | reaching substantial completion of the construction services |
| 78 | purchased as defined in the contract, or, if not defined in the |
| 79 | contract, upon reaching beneficial occupancy or use. |
| 80 | (b) If the contract between the local governmental entity |
| 81 | and the contractor relates to the purchase of construction |
| 82 | services on more than one building or structure, or involves a |
| 83 | multiphased project, the contract shall provide for the |
| 84 | development of a list of items required to render complete, |
| 85 | satisfactory, and acceptable all the construction services |
| 86 | purchased pursuant to the contract for each building, structure, |
| 87 | or phase of the project within the time limitations provided in |
| 88 | paragraph (a). |
| 89 | (c) The failure to include any corrective work or pending |
| 90 | items not yet completed on the list developed pursuant to this |
| 91 | subsection does not alter the responsibility of the contractor |
| 92 | to complete all the construction services purchased pursuant to |
| 93 | the contract. |
| 94 | (d) Upon completion of all items on the list, the |
| 95 | contractor may submit a payment request for all remaining |
| 96 | retainage withheld by the local governmental entity pursuant to |
| 97 | this section. If a good-faith dispute exists as to whether one |
| 98 | or more items identified on the list have been completed |
| 99 | pursuant to the contract, the local governmental entity may |
| 100 | continue to withhold an amount not to exceed 150 percent of the |
| 101 | total costs to complete such items. |
| 102 | (e) All items that require correction under the contract |
| 103 | and that are identified after the preparation and delivery of |
| 104 | the list remain the obligation of the contractor as defined by |
| 105 | the contract. |
| 106 | (f) Warranty items may not affect the final payment of |
| 107 | retainage as provided in this section or as provided in the |
| 108 | contract between the contractor and its subcontractors and |
| 109 | suppliers. |
| 110 | (g) Retainage may not be held by a local governmental |
| 111 | entity or a contractor to secure payment of insurance premiums |
| 112 | under a consolidated insurance program or series of insurance |
| 113 | policies issued to a local governmental entity or a contractor |
| 114 | for a project or group of projects, and the final payment of |
| 115 | retainage as provided in this section may not be delayed pending |
| 116 | a final audit by the local governmental entity's or contractor's |
| 117 | insurance provider. |
| 118 | (h) If a local governmental entity fails to comply with |
| 119 | its responsibilities to develop the list required under |
| 120 | paragraph (a) or paragraph(b), as defined in the contract, |
| 121 | within the time limitations provided in paragraph (a), the |
| 122 | contractor may submit a payment request for all remaining |
| 123 | retainage withheld by the local governmental entity pursuant to |
| 124 | this section. The local governmental entity need not pay or |
| 125 | process any payment request for retainage if the contractor has, |
| 126 | in whole or in part, failed to cooperate with the local |
| 127 | governmental entity in the development of the list or failed to |
| 128 | perform its contractual responsibilities, if any, with regard to |
| 129 | the development of the list or if paragraph (8)(f) applies. |
| 130 | (8)(a) With regard to any contract for construction |
| 131 | services, a local governmental entity may withhold from each |
| 132 | progress payment made to the contractor an amount not exceeding |
| 133 | 10 percent of the payment as retainage to ensure the |
| 134 | satisfactory completion of the construction services purchased |
| 135 | pursuant to the contract until 50-percent completion of such |
| 136 | services. |
| 137 | (b) After 50-percent completion of the construction |
| 138 | services purchased pursuant to the contract, the local |
| 139 | governmental entity must reduce to 5 percent the amount of |
| 140 | retainage withheld from each subsequent progress payment made to |
| 141 | the contractor. For purposes of this subsection, the term "50- |
| 142 | percent completion" has the meaning set forth in the contract |
| 143 | between the local governmental entity and the contractor, or, if |
| 144 | not defined in the contract, the point at which the local |
| 145 | governmental entity has expended 50 percent of the total cost of |
| 146 | the construction services purchased as identified in the |
| 147 | contract together with all costs associated with existing change |
| 148 | orders and other additions or modifications to the construction |
| 149 | services provided for in the contract. However, notwithstanding |
| 150 | this subsection, a municipality with a population of 25,000 or |
| 151 | fewer, or a county with a population of 100,000 or fewer, may |
| 152 | withhold retainage in an amount not exceeding 10 percent of each |
| 153 | progress payment made to the contractor until final completion |
| 154 | and acceptance of the project by the local governmental entity. |
| 155 | (c) After 50-percent completion of the construction |
| 156 | services purchased pursuant to the contract, the contractor may |
| 157 | elect to withhold retainage from payments to its subcontractors |
| 158 | at a rate higher than 5 percent. The specific amount to be |
| 159 | withheld must be determined on a case-by-case basis and must be |
| 160 | based on the contractor's assessment of the subcontractor's past |
| 161 | performance, the likelihood that such performance will continue, |
| 162 | and the contractor's ability to rely on other safeguards. The |
| 163 | contractor shall notify the subcontractor, in writing, of its |
| 164 | determination to withhold more than 5 percent of the progress |
| 165 | payment and the reasons for making that determination, and the |
| 166 | contractor may not request the release of such retained funds |
| 167 | from the local governmental entity. |
| 168 | (d) After 50-percent completion of the construction |
| 169 | services purchased pursuant to the contract, the contractor may |
| 170 | present to the local governmental entity a payment request for |
| 171 | up to one-half of the retainage held by the local governmental |
| 172 | entity. The local governmental entity shall promptly make |
| 173 | payment to the contractor, unless the local governmental entity |
| 174 | has grounds, pursuant to paragraph (f), for withholding the |
| 175 | payment of retainage. If the local governmental entity makes |
| 176 | payment of retainage to the contractor under this paragraph |
| 177 | which is attributable to the labor, services, or materials |
| 178 | supplied by one or more subcontractors or suppliers, the |
| 179 | contractor shall timely remit payment of such retainage to those |
| 180 | subcontractors and suppliers. |
| 181 | (e) This section does not prohibit a local governmental |
| 182 | entity from withholding retainage at a rate less than 10 percent |
| 183 | of each progress payment, from incrementally reducing the rate |
| 184 | of retainage pursuant to a schedule provided for in the |
| 185 | contract, or from releasing at any point all or a portion of any |
| 186 | retainage withheld by the local governmental entity which is |
| 187 | attributable to the labor, services, or materials supplied by |
| 188 | the contractor or by one or more subcontractors or suppliers. If |
| 189 | a local governmental entity makes any payment of retainage to |
| 190 | the contractor which is attributable to the labor, services, or |
| 191 | materials supplied by one or more subcontractors or suppliers, |
| 192 | the contractor shall timely remit payment of such retainage to |
| 193 | those subcontractors and suppliers. |
| 194 | (f) This section does not require the local governmental |
| 195 | entity to pay or release any amounts that are the subject of a |
| 196 | good-faith dispute, the subject of an action brought pursuant to |
| 197 | s. 255.05, or otherwise the subject of a claim or demand by the |
| 198 | local governmental entity or contractor. |
| 199 | (g) The time limitations set forth in this section for |
| 200 | payment of payment requests apply to any payment request for |
| 201 | retainage made pursuant to this section. |
| 202 | (h) Paragraphs (a)-(d) do not apply to construction |
| 203 | services purchased by a local governmental entity which are paid |
| 204 | for, in whole or in part, with federal funds and are subject to |
| 205 | federal grantor laws and regulations or requirements that are |
| 206 | contrary to any provision of the Local Government Prompt Payment |
| 207 | Act. |
| 208 | (i) This subsection does not apply to any construction |
| 209 | services purchased by a local governmental entity if the total |
| 210 | cost of the construction services purchased as identified in the |
| 211 | contract is $200,000 or less. |
| 212 | Section 4. Section 255.0705, Florida Statutes, is created |
| 213 | to read: |
| 214 | 255.0705 Popular name.--Sections 255.0705-255.078 may be |
| 215 | known by the popular name the "Florida Prompt Payment Act." |
| 216 | Section 5. Subsections (2) and (3) of section 255.071, |
| 217 | Florida Statutes, are amended to read: |
| 218 | 255.071 Payment of subcontractors, sub-subcontractors, |
| 219 | materialmen, and suppliers on construction contracts for public |
| 220 | projects.-- |
| 221 | (2) The failure to pay any undisputed obligations for such |
| 222 | labor, services, or materials within 30 days after the date the |
| 223 | labor, services, or materials were furnished and payment for |
| 224 | such labor, services, or materials became due, or within the |
| 225 | time limitations set forth in s. 255.073(3) 30 days after the |
| 226 | date payment for such labor, services, or materials is received, |
| 227 | whichever last occurs, shall entitle any person providing such |
| 228 | labor, services, or materials to the procedures specified in |
| 229 | subsection (3) and the remedies provided in subsection (4). |
| 230 | (3) Any person providing labor, services, or materials for |
| 231 | the construction of a public building, for the prosecution and |
| 232 | completion of a public work, or for repairs upon a public |
| 233 | building or public work improvements to real property may file a |
| 234 | verified complaint alleging: |
| 235 | (a) The existence of a contract for providing such labor, |
| 236 | services, or materials to improve real property. |
| 237 | (b) A description of the labor, services, or materials |
| 238 | provided and alleging that the labor, services, or materials |
| 239 | were provided in accordance with the contract. |
| 240 | (c) The amount of the contract price. |
| 241 | (d) The amount, if any, paid pursuant to the contract. |
| 242 | (e) The amount that remains unpaid pursuant to the |
| 243 | contract and the amount thereof that is undisputed. |
| 244 | (f) That the undisputed amount has remained due and |
| 245 | payable pursuant to the contract for more than 30 days after the |
| 246 | date the labor or services were accepted or the materials were |
| 247 | received. |
| 248 | (g) That the person against whom the complaint was filed |
| 249 | has received payment on account of the labor, services, or |
| 250 | materials described in the complaint and, as of the date the |
| 251 | complaint was filed, has failed to make payment within the time |
| 252 | limitations set forth in s. 255.073(3) more than 30 days prior |
| 253 | to the date the complaint was filed. |
| 254 | Section 6. Section 255.072, Florida Statutes, is created |
| 255 | to read: |
| 256 | 255.072 Definitions.--As used in ss. 255.073-255.078, the |
| 257 | term: |
| 258 | (1) "Agent" means project architect, project engineer, or |
| 259 | any other agency or person acting on behalf of a public entity. |
| 260 | (2) "Construction services" means all labor, services, and |
| 261 | materials provided in connection with the construction, |
| 262 | alteration, repair, demolition, reconstruction, or any other |
| 263 | improvements to real property. The term "construction services" |
| 264 | does not include contracts or work performed for the Department |
| 265 | of Transportation. |
| 266 | (3) "Contractor" means any person who contracts directly |
| 267 | with a public entity to provide construction services. |
| 268 | (4) "Payment request" means a request for payment for |
| 269 | construction services which conforms with all statutory |
| 270 | requirements and with all requirements specified by the public |
| 271 | entity to which the payment request is submitted. |
| 272 | (5) "Public entity" means the state, or any office, board, |
| 273 | bureau, commission, department, branch, division, or institution |
| 274 | thereof, but does not include a local governmental entity as |
| 275 | defined in s. 218.72. |
| 276 | (6) "Purchase" means the purchase of construction |
| 277 | services. |
| 278 | Section 7. Section 255.073, Florida Statutes, is created |
| 279 | to read: |
| 280 | 255.073 Timely payment for purchases of construction |
| 281 | services.-- |
| 282 | (1) Except as otherwise provided in ss. 255.072-255.078, |
| 283 | s. 215.422 governs the timely payment for construction services |
| 284 | by a public entity. |
| 285 | (2) If a public entity disputes a portion of a payment |
| 286 | request, the undisputed portion must be timely paid. |
| 287 | (3) When a contractor receives payment from a public |
| 288 | entity for labor, services, or materials furnished by |
| 289 | subcontractors and suppliers hired by the contractor, the |
| 290 | contractor shall remit payment due to those subcontractors and |
| 291 | suppliers within 10 days after the contractor's receipt of |
| 292 | payment. When a subcontractor receives payment from a contractor |
| 293 | for labor, services, or materials furnished by subcontractors |
| 294 | and suppliers hired by the subcontractor, the subcontractor |
| 295 | shall remit payment due to those subcontractors and suppliers |
| 296 | within 7 days after the subcontractor's receipt of payment. This |
| 297 | subsection does not prohibit a contractor or subcontractor from |
| 298 | disputing, pursuant to the terms of the relevant contract, all |
| 299 | or any portion of a payment alleged to be due to another party |
| 300 | if the contractor or subcontractor notifies the party whose |
| 301 | payment is disputed, in writing, of the amount in dispute and |
| 302 | the actions required to cure the dispute. The contractor or |
| 303 | subcontractor must pay all undisputed amounts due within the |
| 304 | time limits imposed by this subsection. |
| 305 | (4) All payments due for the purchase of construction |
| 306 | services and not made within the applicable time limits shall |
| 307 | bear interest at the rate specified in s. 215.422. After July 1, |
| 308 | 2005, such payments shall bear interest at the rate of 1 percent |
| 309 | per month, to the extent that the Chief Financial Officer's |
| 310 | replacement project for the state's accounting and cash |
| 311 | management systems (Project ASPIRE) is operational for the |
| 312 | particular affected public entities. After January 1, 2006, all |
| 313 | such payments due from public entities shall bear interest at |
| 314 | the rate of 1 percent per month. |
| 315 | Section 8. Section 255.074, Florida Statutes, is created |
| 316 | to read: |
| 317 | 255.074 Procedures for calculation of payment due dates.-- |
| 318 | (1) Each public entity shall establish procedures whereby |
| 319 | each payment request received by the public entity is marked as |
| 320 | received on the date on which it is delivered to an agent or |
| 321 | employee of the public entity or of a facility or office of the |
| 322 | public entity. |
| 323 | (2) If the terms under which a purchase is made allow for |
| 324 | partial deliveries and a payment request is submitted for a |
| 325 | partial delivery, the time for payment for the partial delivery |
| 326 | must be calculated from the time of the partial delivery and the |
| 327 | submission of the payment request. |
| 328 | (3) A public entity must submit a payment request to the |
| 329 | Chief Financial Officer for payment no more than 20 days after |
| 330 | receipt of the payment request. |
| 331 | Section 9. Section 255.075, Florida Statutes, is created |
| 332 | to read: |
| 333 | 255.075 Mandatory interest.--A contract between a public |
| 334 | entity and a contractor may not prohibit the collection of late |
| 335 | payment interest charges authorized under s. 255.073(4). |
| 336 | Section 10. Section 255.076, Florida Statutes, is created |
| 337 | to read: |
| 338 | 255.076 Improper payment request; resolution of |
| 339 | disputes.--In an action to recover amounts due for construction |
| 340 | -In an action to recover amounts due for construction services |
| 341 | purchased by a public entity, the court shall award court costs |
| 342 | and reasonable attorney's fees, including fees incurred through |
| 343 | any appeal, to the prevailing party, if the court finds that the |
| 344 | nonprevailing party withheld any portion of the payment that is |
| 345 | the subject of the action without any reasonable basis in law or |
| 346 | fact to dispute the prevailing party's claim to those amounts. |
| 347 | Section 11. Section 255.077, Florida Statutes, is created |
| 348 | to read: |
| 349 | 255.077 Project closeout and payment of retainage.-- |
| 350 | (1) Each contract for construction services between a |
| 351 | public entity and a contractor must provide for the development |
| 352 | of a list of items required to render complete, satisfactory, |
| 353 | and acceptable the construction services purchased by the public |
| 354 | entity. The contract must specify the process for the |
| 355 | development of the list, including responsibilities of the |
| 356 | public entity and the contractor in developing and reviewing the |
| 357 | list and a reasonable time for developing the list, as follows: |
| 358 | (a) For construction projects with an estimated cost of |
| 359 | less than $10 million, within 30 calendar days after reaching |
| 360 | substantial completion of the construction services purchased as |
| 361 | defined in the contract, or, if not defined in the contract, |
| 362 | upon reaching beneficial occupancy or use; or |
| 363 | (b) For construction projects with an estimated cost of |
| 364 | $10 million or more, within 30 calendar days, unless otherwise |
| 365 | extended by contract not to exceed 60 calendar days, after |
| 366 | reaching substantial completion of the construction services |
| 367 | purchased as defined in the contract, or, if not defined in the |
| 368 | contract, upon reaching beneficial occupancy or use. |
| 369 | (2) If the contract between the public entity and the |
| 370 | contractor relates to the purchase of construction services on |
| 371 | more than one building or structure, or involves a multiphased |
| 372 | project, the contract shall provide for the development of a |
| 373 | list of items required to render complete, satisfactory, and |
| 374 | acceptable all the construction services purchased pursuant to |
| 375 | the contract for each building, structure, or phase of the |
| 376 | project within the time limitations provided in subsection (1). |
| 377 | (3) The failure to include any corrective work or pending |
| 378 | items not yet completed on the list developed pursuant to |
| 379 | subsection (1) or subsection (2) does not alter the |
| 380 | responsibility of the contractor to complete all the |
| 381 | construction services purchased pursuant to the contract. |
| 382 | (4) Upon completion of all items on the list, the |
| 383 | contractor may submit a payment request for all remaining |
| 384 | retainage withheld by the public entity pursuant to s. 255.078. |
| 385 | If a good-faith dispute exists as to whether one or more items |
| 386 | identified on the list have been completed pursuant to the |
| 387 | contract, the public entity may continue to withhold an amount |
| 388 | not to exceed 150 percent of the total costs to complete such |
| 389 | items. |
| 390 | (5) All items that require correction under the contract |
| 391 | and that are identified after the preparation and delivery of |
| 392 | the list remain the obligation of the contractor as defined by |
| 393 | the contract. |
| 394 | (6) Warranty items may not affect the final payment of |
| 395 | retainage as provided in this section or as provided in the |
| 396 | contract between the contractor and its subcontractors and |
| 397 | suppliers. |
| 398 | (7) Retainage may not be held by a public entity or a |
| 399 | contractor to secure payment of insurance premiums under a |
| 400 | consolidated insurance program or series of insurance policies |
| 401 | issued to a public entity or a contractor for a project or group |
| 402 | of projects, and the final payment of retainage as provided in |
| 403 | this section may not be delayed pending a final audit by the |
| 404 | public entity's or contractor's insurance provider. |
| 405 | (8) If a public entity fails to comply with its |
| 406 | responsibilities to develop the list required under subsection |
| 407 | (1) or subsection (2), as defined in the contract, within the |
| 408 | time limitations provided in subsection (1), the contractor may |
| 409 | submit a payment request for all remaining retainage withheld by |
| 410 | the public entity pursuant to s. 255.078. The public entity need |
| 411 | not pay or process any payment request for retainage if the |
| 412 | contractor has, in whole or in part, failed to cooperate with |
| 413 | the public entity in the development of the list or failed to |
| 414 | perform its contractual responsibilities, if any, with regard to |
| 415 | the development of the list or if s. 255.078(6) applies. |
| 416 | Section 12. Section 255.078, Florida Statutes, is created |
| 417 | to read: |
| 418 | 255.078 Public construction retainage.-- |
| 419 | (1) With regard to any contract for construction services, |
| 420 | a public entity may withhold from each progress payment made to |
| 421 | the contractor an amount not exceeding 10 percent of the payment |
| 422 | as retainage to ensure the satisfactory completion of the |
| 423 | construction services purchased pursuant to the contract until |
| 424 | 50-percent completion of such services. |
| 425 | (2) After 50-percent completion of the construction |
| 426 | services purchased pursuant to the contract, the public entity |
| 427 | must reduce to 5 percent the amount of retainage withheld from |
| 428 | each subsequent progress payment made to the contractor. For |
| 429 | purposes of this section, the term "50-percent completion" has |
| 430 | the meaning set forth in the contract between the public entity |
| 431 | and the contractor, or, if not defined in the contract, the |
| 432 | point at which the public entity has expended 50 percent of the |
| 433 | total cost of the construction services purchased as identified |
| 434 | in the contract together with all costs associated with existing |
| 435 | change orders and other additions or modifications to the |
| 436 | construction services provided for in the contract. |
| 437 | (3) After 50-percent completion of the construction |
| 438 | services purchased pursuant to the contract, the contractor may |
| 439 | elect to withhold retainage from payments to its subcontractors |
| 440 | at a rate higher than 5 percent. The specific amount to be |
| 441 | withheld must be determined on a case-by-case basis and must be |
| 442 | based on the contractor's assessment of the subcontractor's past |
| 443 | performance, the likelihood that such performance will continue, |
| 444 | and the contractor's ability to rely on other safeguards. The |
| 445 | contractor shall notify the subcontractor, in writing, of its |
| 446 | determination to withhold more than 5 percent of the progress |
| 447 | payment and the reasons for making that determination, and the |
| 448 | contractor may not request the release of such retained funds |
| 449 | from the public entity. |
| 450 | (4) After 50-percent completion of the construction |
| 451 | services purchased pursuant to the contract, the contractor may |
| 452 | present to the public entity a payment request for up to one- |
| 453 | half of the retainage held by the public entity. The public |
| 454 | entity shall promptly make payment to the contractor, unless the |
| 455 | public entity has grounds, pursuant to subsection (6), for |
| 456 | withholding the payment of retainage. If the public entity makes |
| 457 | payment of retainage to the contractor under this subsection |
| 458 | which is attributable to the labor, services, or materials |
| 459 | supplied by one or more subcontractors or suppliers, the |
| 460 | contractor shall timely remit payment of such retainage to those |
| 461 | subcontractors and suppliers. |
| 462 | (5) Neither this section nor s. 255.077 prohibits a public |
| 463 | entity from withholding retainage at a rate less than 10 percent |
| 464 | of each progress payment, from incrementally reducing the rate |
| 465 | of retainage pursuant to a schedule provided for in the |
| 466 | contract, or from releasing at any point all or a portion of any |
| 467 | retainage withheld by the public entity which is attributable to |
| 468 | the labor, services, or materials supplied by the contractor or |
| 469 | by one or more subcontractors or suppliers. If a public entity |
| 470 | makes any payment of retainage to the contractor which is |
| 471 | attributable to the labor, services, or materials supplied by |
| 472 | one or more subcontractors or suppliers, the contractor shall |
| 473 | timely remit payment of such retainage to those subcontractors |
| 474 | and suppliers. |
| 475 | (6) Neither this section nor s. 255.077 requires the |
| 476 | public entity to pay or release any amounts that are the subject |
| 477 | of a good-faith dispute, the subject of an action brought |
| 478 | pursuant to s. 255.05, or otherwise the subject of a claim or |
| 479 | demand by the public entity or contractor. |
| 480 | (7) The same time limits for payment of a payment request |
| 481 | apply regardless of whether the payment request is for, or |
| 482 | includes, retainage. |
| 483 | (8) Subsections (1)-(4) do not apply to construction |
| 484 | services purchased by a public entity which are paid for, in |
| 485 | whole or in part, with federal funds and are subject to federal |
| 486 | grantor laws and regulations or requirements that are contrary |
| 487 | to any provision of the Florida Prompt Payment Act. |
| 488 | (9) This section does not apply to any construction |
| 489 | services purchased by a public entity if the total cost of the |
| 490 | construction services purchased as identified in the contract is |
| 491 | $200,000 or less. |
| 492 | Section 13. Section 255.05, Florida Statutes, is amended |
| 493 | to read: |
| 494 | 255.05 Bond of contractor constructing public buildings; |
| 495 | form; action by materialmen.-- |
| 496 | (1)(a) Any person entering into a formal contract with the |
| 497 | state or any county, city, or political subdivision thereof, or |
| 498 | other public authority, for the construction of a public |
| 499 | building, for the prosecution and completion of a public work, |
| 500 | or for repairs upon a public building or public work shall be |
| 501 | required, before commencing the work or before recommencing the |
| 502 | work after a default or abandonment, to execute, deliver to the |
| 503 | public owner, and record in the public records of the county |
| 504 | where the improvement is located, a payment and performance bond |
| 505 | with a surety insurer authorized to do business in this state as |
| 506 | surety. A public entity may not require a contractor to secure a |
| 507 | surety bond under this section from a specific agent or bonding |
| 508 | company. The bond must state on its front page: the name, |
| 509 | principal business address, and phone number of the contractor, |
| 510 | the surety, the owner of the property being improved, and, if |
| 511 | different from the owner, the contracting public entity; the |
| 512 | contract number assigned by the contracting public entity; and a |
| 513 | description of the project sufficient to identify it, such as a |
| 514 | legal description or the street address of the property being |
| 515 | improved, and a general description of the improvement. Such |
| 516 | bond shall be conditioned upon the contractor's performance of |
| 517 | the construction work in the time and manner prescribed in the |
| 518 | contract and promptly making payments to all persons defined in |
| 519 | s. 713.01 who furnish labor, services, or materials for the |
| 520 | prosecution of the work provided for in the contract. Any |
| 521 | claimant may apply to the governmental entity having charge of |
| 522 | the work for copies of the contract and bond and shall thereupon |
| 523 | be furnished with a certified copy of the contract and bond. The |
| 524 | claimant shall have a right of action against the contractor and |
| 525 | surety for the amount due him or her, including unpaid finance |
| 526 | charges due under the claimant's contract. Such action shall not |
| 527 | involve the public authority in any expense. When such work is |
| 528 | done for the state and the contract is for $100,000 or less, no |
| 529 | payment and performance bond shall be required. At the |
| 530 | discretion of the official or board awarding such contract when |
| 531 | such work is done for any county, city, political subdivision, |
| 532 | or public authority, any person entering into such a contract |
| 533 | which is for $200,000 or less may be exempted from executing the |
| 534 | payment and performance bond. When such work is done for the |
| 535 | state, the Secretary of the Department of Management Services |
| 536 | may delegate to state agencies the authority to exempt any |
| 537 | person entering into such a contract amounting to more than |
| 538 | $100,000 but less than $200,000 from executing the payment and |
| 539 | performance bond. In the event such exemption is granted, the |
| 540 | officer or officials shall not be personally liable to persons |
| 541 | suffering loss because of granting such exemption. The |
| 542 | Department of Management Services shall maintain information on |
| 543 | the number of requests by state agencies for delegation of |
| 544 | authority to waive the bond requirements by agency and project |
| 545 | number and whether any request for delegation was denied and the |
| 546 | justification for the denial. |
| 547 | (b) The Department of Management Services shall adopt |
| 548 | rules with respect to all contracts for $200,000 or less, to |
| 549 | provide: |
| 550 | 1. Procedures for retaining up to 10 percent of each |
| 551 | request for payment submitted by a contractor and procedures for |
| 552 | determining disbursements from the amount retained on a pro rata |
| 553 | basis to laborers, materialmen, and subcontractors, as defined |
| 554 | in s. 713.01. |
| 555 | 2. Procedures for requiring certification from laborers, |
| 556 | materialmen, and subcontractors, as defined in s. 713.01, prior |
| 557 | to final payment to the contractor that such laborers, |
| 558 | materialmen, and subcontractors have no claims against the |
| 559 | contractor resulting from the completion of the work provided |
| 560 | for in the contract. |
| 561 |
|
| 562 | The state shall not be held liable to any laborer, materialman, |
| 563 | or subcontractor for any amounts greater than the pro rata share |
| 564 | as determined under this section. |
| 565 | (2)(a)1. If a claimant is no longer furnishing labor, |
| 566 | services, or materials on a project, a contractor or the |
| 567 | contractor's agent or attorney may elect to shorten the |
| 568 | prescribed time in this paragraph within which an action to |
| 569 | enforce any claim against a payment bond provided pursuant to |
| 570 | this section may be commenced by recording in the clerk's office |
| 571 | a notice in substantially the following form: |
| 572 |
|
| 573 | NOTICE OF CONTEST OF CLAIM |
| 574 | AGAINST PAYMENT BOND |
| 575 |
|
| 576 | To: . . . (Name and address of claimant) . . . |
| 577 |
|
| 578 | You are notified that the undersigned contests your notice |
| 579 | of nonpayment, dated ____________, ________, and served on the |
| 580 | undersigned on ____________, ________, and that the time within |
| 581 | which you may file suit to enforce your claim is limited to 60 |
| 582 | days after the date of service of this notice. |
| 583 |
|
| 584 | DATED on ____________, ________. |
| 585 |
|
| 586 | Signed: . . . (Contractor or Attorney) . . . |
| 587 |
|
| 588 | The claim of any claimant upon whom such notice is served and |
| 589 | who fails to institute a suit to enforce his or her claim |
| 590 | against the payment bond within 60 days after service of such |
| 591 | notice shall be extinguished automatically. The clerk shall mail |
| 592 | a copy of the notice of contest to the claimant at the address |
| 593 | shown in the notice of nonpayment or most recent amendment |
| 594 | thereto and shall certify to such service on the face of such |
| 595 | notice and record the notice. Service is complete upon mailing. |
| 596 | 2. A claimant, except a laborer, who is not in privity |
| 597 | with the contractor shall, before commencing or not later than |
| 598 | 45 days after commencing to furnish labor, materials, or |
| 599 | supplies for the prosecution of the work, furnish the contractor |
| 600 | with a notice that he or she intends to look to the bond for |
| 601 | protection. A claimant who is not in privity with the contractor |
| 602 | and who has not received payment for his or her labor, |
| 603 | materials, or supplies shall deliver to the contractor and to |
| 604 | the surety written notice of the performance of the labor or |
| 605 | delivery of the materials or supplies and of the nonpayment. The |
| 606 | notice of nonpayment may be served at any time during the |
| 607 | progress of the work or thereafter but not before 45 days after |
| 608 | the first furnishing of labor, services, or materials, and not |
| 609 | later than 90 days after the final furnishing of the labor, |
| 610 | services, or materials by the claimant or, with respect to |
| 611 | rental equipment, not later than 90 days after the date that the |
| 612 | rental equipment was last on the job site available for use. Any |
| 613 | notice of nonpayment served by a claimant who is not in privity |
| 614 | with the contractor which includes sums for retainage must |
| 615 | specify the portion of the amount claimed for retainage. No |
| 616 | action for the labor, materials, or supplies may be instituted |
| 617 | against the contractor or the surety unless both notices have |
| 618 | been given. Notices required or permitted under this section may |
| 619 | be served in accordance with s. 713.18. An action, except for an |
| 620 | action exclusively for recovery of retainage, must be instituted |
| 621 | against the contractor or the surety on the payment bond or the |
| 622 | payment provisions of a combined payment and performance bond |
| 623 | within 1 year after the performance of the labor or completion |
| 624 | of delivery of the materials or supplies. An action exclusively |
| 625 | for recovery of retainage must be instituted against the |
| 626 | contractor or the surety within 1 year after the performance of |
| 627 | the labor or completion of delivery of the materials or |
| 628 | supplies, or within 90 days after receipt of final payment (or |
| 629 | the payment estimate containing the owner's final reconciliation |
| 630 | of quantities if no further payment is earned and due as a |
| 631 | result of deductive adjustments) by the contractor or surety, |
| 632 | whichever comes last. A claimant may not waive in advance his or |
| 633 | her right to bring an action under the bond against the surety. |
| 634 | In any action brought to enforce a claim against a payment bond |
| 635 | under this section, the prevailing party is entitled to recover |
| 636 | a reasonable fee for the services of his or her attorney for |
| 637 | trial and appeal or for arbitration, in an amount to be |
| 638 | determined by the court, which fee must be taxed as part of the |
| 639 | prevailing party's costs, as allowed in equitable actions. The |
| 640 | time periods for service of a notice of nonpayment or for |
| 641 | bringing an action against a contractor or a surety shall be |
| 642 | measured from the last day of furnishing labor, services, or |
| 643 | materials by the claimant and shall not be measured by other |
| 644 | standards, such as the issuance of a certificate of occupancy or |
| 645 | the issuance of a certificate of substantial completion. |
| 646 | (b) When a person is required to execute a waiver of his |
| 647 | or her right to make a claim against the payment bond in |
| 648 | exchange for, or to induce payment of, a progress payment, the |
| 649 | waiver may be in substantially the following form: |
| 650 |
|
| 651 | WAIVER OF RIGHT TO CLAIM AGAINST THE PAYMENT BOND (PROGRESS |
| 652 | PAYMENT) |
| 653 |
|
| 654 | The undersigned, in consideration of the sum of $____, |
| 655 | hereby waives its right to claim against the payment bond for |
| 656 | labor, services, or materials furnished through . . . (insert |
| 657 | date) . . . to . . . (insert the name of your customer) . . . |
| 658 | on the job of . . . (insert the name of the owner) . . . , for |
| 659 | improvements to the following described project: |
| 660 |
|
| 661 | (description of project) |
| 662 |
|
| 663 | This waiver does not cover any retention or any labor, services, |
| 664 | or materials furnished after the date specified. |
| 665 |
|
| 666 | DATED ON ________, ____. |
| 667 | . . . (Claimant) . . . |
| 668 | By:____________ |
| 669 |
|
| 670 | (c) When a person is required to execute a waiver of his |
| 671 | or her right to make a claim against the payment bond, in |
| 672 | exchange for, or to induce payment of, the final payment, the |
| 673 | waiver may be in substantially the following form: |
| 674 |
|
| 675 | WAIVER OF RIGHT TO CLAIM AGAINST THE PAYMENT BOND (FINAL |
| 676 | PAYMENT) |
| 677 |
|
| 678 | The undersigned, in consideration of the final payment in |
| 679 | the amount of $____, hereby waives its right to claim against |
| 680 | the payment bond for labor, services, or materials furnished to |
| 681 | . . . (insert the name of your customer) . . . on the job of . |
| 682 | . . (insert the name of the owner) . . . , for improvements to |
| 683 | the following described project: |
| 684 |
|
| 685 | (description of project) |
| 686 |
|
| 687 | DATED ON ________, ____. |
| 688 | . . . (Claimant) . . . |
| 689 | By:____________ |
| 690 |
|
| 691 | (d) A person may not require a claimant to furnish a |
| 692 | waiver that is different from the forms in paragraphs (b) and |
| 693 | (c). |
| 694 | (e) A claimant who executes a waiver in exchange for a |
| 695 | check may condition the waiver on payment of the check. |
| 696 | (f) A waiver that is not substantially similar to the |
| 697 | forms in this subsection is enforceable in accordance with its |
| 698 | terms. |
| 699 | (3) The bond required in subsection (1) may be in |
| 700 | substantially the following form: |
| 701 |
|
| 702 | PUBLIC CONSTRUCTION BOND |
| 703 |
|
| 704 | Bond No. (enter bond number) |
| 705 |
|
| 706 | BY THIS BOND, We _____, as Principal and _____, a |
| 707 | corporation, as Surety, are bound to _____, herein called Owner, |
| 708 | in the sum of $_____, for payment of which we bind ourselves, |
| 709 | our heirs, personal representatives, successors, and assigns, |
| 710 | jointly and severally. |
| 711 | THE CONDITION OF THIS BOND is that if Principal: |
| 712 | 1. Performs the contract dated _____, _____, between |
| 713 | Principal and Owner for construction of _____, the contract |
| 714 | being made a part of this bond by reference, at the times and in |
| 715 | the manner prescribed in the contract; and |
| 716 | 2. Promptly makes payments to all claimants, as defined in |
| 717 | Section 255.05(1), Florida Statutes, supplying Principal with |
| 718 | labor, materials, or supplies, used directly or indirectly by |
| 719 | Principal in the prosecution of the work provided for in the |
| 720 | contract; and |
| 721 | 3. Pays Owner all losses, damages, expenses, costs, and |
| 722 | attorney's fees, including appellate proceedings, that Owner |
| 723 | sustains because of a default by Principal under the contract; |
| 724 | and |
| 725 | 4. Performs the guarantee of all work and materials |
| 726 | furnished under the contract for the time specified in the |
| 727 | contract, then this bond is void; otherwise it remains in full |
| 728 | force. |
| 729 | Any action instituted by a claimant under this bond for |
| 730 | payment must be in accordance with the notice and time |
| 731 | limitation provisions in Section 255.05, Florida Statutes. |
| 732 | Any changes in or under the contract documents and |
| 733 | compliance or noncompliance with any formalities connected with |
| 734 | the contract or the changes does not affect Surety's obligation |
| 735 | under this bond. |
| 736 |
|
| 737 | DATED ON _____, _____. |
| 738 |
|
| 739 | ... (Name of Principal) ... |
| 740 |
|
| 741 | By ... (As Attorney in Fact) ... |
| 742 |
|
| 743 | ... (Name of Surety) ... |
| 744 |
|
| 745 | (4) The payment provisions of all bonds required by |
| 746 | furnished for public work contracts described in subsection (1) |
| 747 | shall, regardless of form, be construed and deemed statutory |
| 748 | bonds furnished pursuant to this section and such bonds shall |
| 749 | not under any circumstances be converted into common law bonds |
| 750 | bond provisions, subject to all requirements of subsection (2). |
| 751 | (5) In addition to the provisions of chapter 47, any |
| 752 | action authorized under this section may be brought in the |
| 753 | county in which the public building or public work is being |
| 754 | constructed or repaired. This subsection shall not apply to an |
| 755 | action instituted prior to May 17, 1977. |
| 756 | (6) All bonds executed pursuant to this section shall make |
| 757 | reference to this section by number and shall contain reference |
| 758 | to the notice and time limitation provisions of this section. |
| 759 | (6)(7) In lieu of the bond required by this section, a |
| 760 | contractor may file with the state, county, city, or other |
| 761 | political authority an alternative form of security in the form |
| 762 | of cash, a money order, a certified check, a cashier's check, an |
| 763 | irrevocable letter of credit, or a security of a type listed in |
| 764 | part II of chapter 625. Any such alternative form of security |
| 765 | shall be for the same purpose and be subject to the same |
| 766 | conditions as those applicable to the bond required by this |
| 767 | section. The determination of the value of an alternative form |
| 768 | of security shall be made by the appropriate state, county, |
| 769 | city, or other political subdivision. |
| 770 | (7)(8) When a contractor has furnished a payment bond |
| 771 | pursuant to this section, he or she may, when the state, county, |
| 772 | municipality, political subdivision, or other public authority |
| 773 | makes any payment to the contractor or directly to a claimant, |
| 774 | serve a written demand on any claimant who is not in privity |
| 775 | with the contractor for a written statement under oath of his or |
| 776 | her account showing the nature of the labor or services |
| 777 | performed and to be performed, if any; the materials furnished; |
| 778 | the materials to be furnished, if known; the amount paid on |
| 779 | account to date; the amount due; and the amount to become due, |
| 780 | if known, as of the date of the statement by the claimant. Any |
| 781 | such demand to a claimant who is not in privity with the |
| 782 | contractor must be served on the claimant at the address and to |
| 783 | the attention of any person who is designated to receive the |
| 784 | demand in the notice to contractor served by the claimant. The |
| 785 | failure or refusal to furnish the statement does not deprive the |
| 786 | claimant of his or her rights under the bond if the demand is |
| 787 | not served at the address of the claimant or directed to the |
| 788 | attention of the person designated to receive the demand in the |
| 789 | notice to contractor. The failure to furnish the statement |
| 790 | within 30 days after the demand, or the furnishing of a false or |
| 791 | fraudulent statement, deprives the claimant who fails to furnish |
| 792 | the statement, or who furnishes the false or fraudulent |
| 793 | statement, of his or her rights under the bond. If the |
| 794 | contractor serves more than one demand for statement of account |
| 795 | on a claimant and none of the information regarding the account |
| 796 | has changed since the claimant's last response to a demand, the |
| 797 | failure or refusal to furnish such statement does not deprive |
| 798 | the claimant of his or her rights under the bond. The negligent |
| 799 | inclusion or omission of any information deprives the claimant |
| 800 | of his or her rights under the bond to the extent that the |
| 801 | contractor can demonstrate prejudice from such act or omission |
| 802 | by the claimant. The failure to furnish a response to a demand |
| 803 | for statement of account does not affect the validity of any |
| 804 | claim on the bond being enforced in a lawsuit filed before the |
| 805 | date the demand for statement of account is received by the |
| 806 | claimant. |
| 807 | (8)(9) On any public works project for which the public |
| 808 | authority requires a performance and payment bond, suits at law |
| 809 | and in equity may be brought and maintained by and against the |
| 810 | public authority on any contract claim arising from breach of an |
| 811 | express provision or an implied covenant of a written agreement |
| 812 | or a written directive issued by the public authority pursuant |
| 813 | to the written agreement. In any such suit, the public |
| 814 | authority and the contractor shall have all of the same rights |
| 815 | and obligations as a private person under a like contract except |
| 816 | that no liability may be based on an oral modification of either |
| 817 | the written contract or written directive. Nothing herein shall |
| 818 | be construed to waive the sovereign immunity of the state and |
| 819 | its political subdivisions from equitable claims and equitable |
| 820 | remedies. The provisions of this subsection shall apply only to |
| 821 | contracts entered into on or after July 1, 1999. |
| 822 | (9) An action, except an action for recovery of retainage, |
| 823 | must be instituted against the contractor or the surety on the |
| 824 | payment bond or the payment provisions of a combined payment and |
| 825 | performance bond within 1 year after the performance of the |
| 826 | labor or completion of delivery of the materials or supplies. An |
| 827 | action for recovery of retainage must be instituted against the |
| 828 | contractor or the surety within 1 year after the performance of |
| 829 | the labor or completion of delivery of the materials or |
| 830 | supplies, provided that such an action may not be instituted |
| 831 | until one of the following conditions is satisfied: |
| 832 | (a) The public entity has paid out the claimant's |
| 833 | retainage to the contractor, and the time provided under s. |
| 834 | 255.073(3) for payment of that retainage to the claimant has |
| 835 | expired; |
| 836 | (b) The claimant has completed all work required under its |
| 837 | contract and 70 days have passed since the contractor sent its |
| 838 | final payment request to the public entity; or |
| 839 | (c) The claimant has asked the contractor, in writing, |
| 840 | when the contractor received payment of the claimant's retainage |
| 841 | or when the contractor sent its final payment request to the |
| 842 | public entity, and the contractor has failed to respond to this |
| 843 | request, in writing, within 10 days after receipt. |
| 844 |
|
| 845 | If none of the conditions described in paragraph (a), paragraph |
| 846 | (b), or paragraph (c) is satisfied and an action for recovery of |
| 847 | retainage therefore cannot be instituted within the 1-year |
| 848 | limitation period set forth in this subsection, this limitation |
| 849 | period shall be extended until 120 days after one of these |
| 850 | conditions is satisfied. |
| 851 | Section 14. Paragraph (b) of subsection (2) of section |
| 852 | 95.11, Florida Statutes, is amended to read: |
| 853 | 95.11 Limitations other than for the recovery of real |
| 854 | property.--Actions other than for recovery of real property |
| 855 | shall be commenced as follows: |
| 856 | (2) WITHIN FIVE YEARS.-- |
| 857 | (b) A legal or equitable action on a contract, obligation, |
| 858 | or liability founded on a written instrument, except for an |
| 859 | action to enforce a claim against a payment bond, which shall be |
| 860 | governed by the applicable provisions of ss. 255.05(9) |
| 861 | 255.05(2)(a)2. and 713.23(1)(e). |
| 862 | Section 15. Neither the amendments to sections 95.11, |
| 863 | 218.70, 218.72, 218.735, and 255.071, Florida Statutes, and |
| 864 | subsection (2) of section 255.05, Florida Statutes, as provided |
| 865 | in this act, nor subsection (9) of section 255.05, Florida |
| 866 | Statutes, and section 255.078, Florida Statutes, as created by |
| 867 | this act, applies to any existing construction contract pending |
| 868 | approval by a local governmental entity or public entity, or to |
| 869 | any project advertised for bid by the local government entity or |
| 870 | public entity, on or before the effective date of this act. The |
| 871 | amendments to subsections (3), (4), and (6) of section 255.05, |
| 872 | Florida Statutes, as provided in this act, apply to public |
| 873 | construction bonds issued for contracts entered into on or after |
| 874 | the effective date of this act. |
| 875 | Section 16. This act shall take effect October 1, 2004. |
| 876 |
|
| 877 | ================= T I T L E A M E N D M E N T ================= |
| 878 | Remove the entire title and insert: |
| 879 | A bill to be entitled |
| 880 | An act relating to prompt payment for construction |
| 881 | services; amending s. 218.70, F.S.; providing a popular |
| 882 | name; amending s. 218.72, F.S.; redefining terms used in |
| 883 | pt. VII of ch. 218, F.S.; amending s. 218.735, F.S.; |
| 884 | revising provisions relating to timely payment for |
| 885 | purchases of construction services; revising deadlines for |
| 886 | payment; providing procedures for project closeout and |
| 887 | payment of retainage; providing requirements for local |
| 888 | government construction retainage; providing that ss. |
| 889 | 218.72-218.76, F.S., apply to the payment of any payment |
| 890 | request for retainage; providing exceptions; creating s. |
| 891 | 255.0705, F.S.; providing a popular name; amending s. |
| 892 | 255.071, F.S.; revising deadlines for the payment of |
| 893 | subcontractors, sub-subcontractors, materialmen, and |
| 894 | suppliers on construction contracts for public projects; |
| 895 | creating ss. 255.072, 255.073, 255.074, 255.075, 255.076, |
| 896 | 255.077, and 255.078, F.S.; providing definitions; |
| 897 | providing for timely payment for purchases of construction |
| 898 | services by a public entity; providing procedures for |
| 899 | calculating payment due dates; authorizing the collection |
| 900 | of interest under certain circumstances; providing |
| 901 | procedures for handling improper payment requests; |
| 902 | providing for the resolution of disputes; providing for |
| 903 | project closeout and payment of retainage; providing that |
| 904 | ss. 255.072-255.076, F.S., apply to the payment of any |
| 905 | payment request for retainage; providing exceptions; |
| 906 | amending s. 255.05, F.S.; providing requirements for |
| 907 | certain notices of nonpayment served by a claimant who is |
| 908 | not in privity with the contractor; revising the form for |
| 909 | a public construction bond; requiring the payment |
| 910 | provisions of all public construction bonds to be |
| 911 | construed as statutory bonds; prohibiting conversion to |
| 912 | common law bonds; deleting a requirement that bond forms |
| 913 | used by public owners reference certain notice and time |
| 914 | limitation provisions; providing limitations on a |
| 915 | claimant's institution of certain actions against a |
| 916 | contractor or surety; amending s. 95.11, F.S., to conform |
| 917 | a cross reference; providing for application of specified |
| 918 | sections of the act to certain contracts and projects; |
| 919 | providing an effective date. |