HB 1285

1
A bill to be entitled
2An act relating to construction liens; amending s. 255.05,
3F.S.; requiring a performance bond for certain contracts
4with private entities for specified public works projects;
5requiring that certain notices by claimants be in writing;
6amending s. 713.01, F.S.; defining the term "final
7furnishing"; creating s. 713.012, F.S.; requiring that
8certain notices, demands, or requests be in writing;
9amending s. 713.015, F.S.; requiring that certain notices
10pertaining to direct contracts for improvements to certain
11property be in writing; amending s. 713.02, F.S.;
12providing for an owner and contractor to agree to the
13furnishing of a payment bond; exempting an owner who
14agrees from certain statutory provisions; amending s.
15713.07, F.S.; providing for the recommencement of
16construction following the termination of certain
17contracts; amending s. 713.08, F.S.; requiring that
18certain claims of lien be sworn to or affirmed; revising
19and conforming certain exceptions to a time limitation on
20recording of a claim of lien; amending s. 713.13, F.S.;
21requiring that notices of commencement include the tax
22folio number; providing for the recording of amended
23notices of commencement; amending s. 713.16, F.S.;
24revising provisions relating to a lienor's right to demand
25a statement of account; requiring that the claim of lien
26be recorded; deleting provisions relating to the failure
27to furnish the statement; amending s. 713.18, F.S.;
28providing procedures for service of notices and other
29instruments upon a limited liability company; amending s.
30713.22, F.S.; extending the duration of certain liens for
31which amended claims of lien are filed; amending s.
32713.31, F.S.; providing for the award of attorney's fees
33and costs to prevailing parties in certain actions
34relating to fraudulent liens; repealing s. 713.36, F.S.,
35relating to an effective date, to delete an obsolete
36provision; providing an effective date.
37
38Be It Enacted by the Legislature of the State of Florida:
39
40     Section 1.  Paragraph (a) of subsection (1) and paragraph
41(a) of subsection (2) of section 255.05, Florida Statutes, are
42amended to read:
43     255.05  Bond of contractor constructing public buildings;
44form; action by materialmen.--
45     (1)(a)  Any person entering into a formal contract with the
46state or any county, city, or political subdivision thereof, or
47other public authority or private entity, for the construction
48of a public building, for the prosecution and completion of a
49public work, or for repairs upon a public building or public
50work shall be required, before commencing the work or before
51recommencing the work after a default or abandonment, to
52execute, deliver to the public owner, and record in the public
53records of the county where the improvement is located, a
54payment and performance bond with a surety insurer authorized to
55do business in this state as surety. A public entity may not
56require a contractor to secure a surety bond under this section
57from a specific agent or bonding company. The bond must state on
58its front page: the name, principal business address, and phone
59number of the contractor, the surety, the owner of the property
60being improved, and, if different from the owner, the
61contracting public entity; the contract number assigned by the
62contracting public entity; and a description of the project
63sufficient to identify it, such as a legal description or the
64street address of the property being improved, and a general
65description of the improvement. Such bond shall be conditioned
66upon the contractor's performance of the construction work in
67the time and manner prescribed in the contract and promptly
68making payments to all persons defined in s. 713.01 who furnish
69labor, services, or materials for the prosecution of the work
70provided for in the contract. Any claimant may apply to the
71governmental entity having charge of the work for copies of the
72contract and bond and shall thereupon be furnished with a
73certified copy of the contract and bond. The claimant shall have
74a right of action against the contractor and surety for the
75amount due him or her, including unpaid finance charges due
76under the claimant's contract. Such action shall not involve the
77public authority in any expense. When such work is done for the
78state and the contract is for $100,000 or less, no payment and
79performance bond shall be required. At the discretion of the
80official or board awarding such contract when such work is done
81for any county, city, political subdivision, or public
82authority, any person entering into such a contract which is for
83$200,000 or less may be exempted from executing the payment and
84performance bond. When such work is done for the state, the
85Secretary of the Department of Management Services may delegate
86to state agencies the authority to exempt any person entering
87into such a contract amounting to more than $100,000 but less
88than $200,000 from executing the payment and performance bond.
89In the event such exemption is granted, the officer or officials
90shall not be personally liable to persons suffering loss because
91of granting such exemption. The Department of Management
92Services shall maintain information on the number of requests by
93state agencies for delegation of authority to waive the bond
94requirements by agency and project number and whether any
95request for delegation was denied and the justification for the
96denial. Any provision in a payment bond furnished for public
97work contracts as provided by this subsection which restricts
98the classes of persons as defined in s. 713.01 protected by the
99bond or the venue of any proceeding relating to such bond is
100unenforceable.
101     (2)(a)1.  If a claimant is no longer furnishing labor,
102services, or materials on a project, a contractor or the
103contractor's agent or attorney may elect to shorten the
104prescribed time in this paragraph within which an action to
105enforce any claim against a payment bond provided pursuant to
106this section may be commenced by recording in the clerk's office
107a notice in substantially the following form:
108
109
NOTICE OF CONTEST OF CLAIM
110
AGAINST PAYMENT BOND
111
112To:   (Name and address of claimant)  
113
114     You are notified that the undersigned contests your notice
115of nonpayment, dated _______________, __________, and served on
116the undersigned on _______________, __________, and that the
117time within which you may file suit to enforce your claim is
118limited to 60 days after the date of service of this notice.
119
120     DATED on _______________, __________.
121
122Signed:  (Contractor or Attorney)  
123
124The claim of any claimant upon whom such notice is served and
125who fails to institute a suit to enforce his or her claim
126against the payment bond within 60 days after service of such
127notice shall be extinguished automatically. The clerk shall mail
128a copy of the notice of contest to the claimant at the address
129shown in the notice of nonpayment or most recent amendment
130thereto and shall certify to such service on the face of such
131notice and record the notice. Service is complete upon mailing.
132     2.  A claimant, except a laborer, who is not in privity
133with the contractor shall, before commencing or not later than
13445 days after commencing to furnish labor, materials, or
135supplies for the prosecution of the work, furnish the contractor
136with a written notice that he or she intends to look to the bond
137for protection. A claimant who is not in privity with the
138contractor and who has not received payment for his or her
139labor, materials, or supplies shall deliver to the contractor
140and to the surety written notice of the performance of the labor
141or delivery of the materials or supplies and of the nonpayment.
142The notice of nonpayment may be served at any time during the
143progress of the work or thereafter but not before 45 days after
144the first furnishing of labor, services, or materials, and not
145later than 90 days after the final furnishing of the labor,
146services, or materials by the claimant or, with respect to
147rental equipment, not later than 90 days after the date that the
148rental equipment was last on the job site available for use. Any
149notice of nonpayment served by a claimant who is not in privity
150with the contractor which includes sums for retainage must
151specify the portion of the amount claimed for retainage. No
152action for the labor, materials, or supplies may be instituted
153against the contractor or the surety unless both notices have
154been given. Notices required or permitted under this section may
155be served in accordance with s. 713.18. A claimant may not waive
156in advance his or her right to bring an action under the bond
157against the surety. In any action brought to enforce a claim
158against a payment bond under this section, the prevailing party
159is entitled to recover a reasonable fee for the services of his
160or her attorney for trial and appeal or for arbitration, in an
161amount to be determined by the court, which fee must be taxed as
162part of the prevailing party's costs, as allowed in equitable
163actions. The time periods for service of a notice of nonpayment
164or for bringing an action against a contractor or a surety shall
165be measured from the last day of furnishing labor, services, or
166materials by the claimant and shall not be measured by other
167standards, such as the issuance of a certificate of occupancy or
168the issuance of a certificate of substantial completion.
169     Section 2.  Subsections (12) through (28) of section
170713.01, Florida Statutes, are renumbered as subsections (13)
171through (29), respectively, and a new subsection (12) is added
172to that section, to read:
173     713.01  Definitions.--As used in this part, the term:
174     (12)  "Final furnishing" means the last date that the
175lienor furnishes labor, services, or materials. Such date may
176not be measured by other standards, such as the issuance of a
177certificate of occupancy or the issuance of a certificate of
178final completion, and does not include correction of
179deficiencies in the lienor's previously performed work or
180materials supplied. With respect to rental equipment, the term
181means the date that the rental equipment was last on the job
182site and available for use.
183     Section 3.  Section 713.012, Florida Statutes, is created
184to read:
185     713.012  Written notices, demands, or requests.--Notices,
186demands, or requests permitted or required under this part,
187except any required by s. 713.04, must be in writing.
188     Section 4.  Section 713.015, Florida Statutes, is amended
189to read:
190     713.015  Mandatory provisions for direct contracts.--
191     (1)  Any direct contract between an owner and a contractor,
192related to improvements to real property consisting of single or
193multiple family dwellings up to and including four units, must
194contain the following notice provision printed in no less than
19514-point, capitalized, boldfaced type on the front page of the
196contract:
197
198ACCORDING TO FLORIDA'S CONSTRUCTION LIEN LAW (SECTIONS 713.001-
199713.37, FLORIDA STATUTES), THOSE WHO WORK ON YOUR PROPERTY OR
200PROVIDE MATERIALS AND ARE NOT PAID IN FULL HAVE A RIGHT TO
201ENFORCE THEIR CLAIM FOR PAYMENT AGAINST YOUR PROPERTY. IF YOUR
202CONTRACTOR OR A SUBCONTRACTOR FAILS TO PAY SUBCONTRACTORS, SUB-
203SUBCONTRACTORS, OR MATERIAL SUPPLIERS, THE PEOPLE WHO ARE OWED
204MONEY MAY LOOK TO YOUR PROPERTY FOR PAYMENT, EVEN IF YOU HAVE
205ALREADY PAID YOUR CONTRACTOR IN FULL. IF YOU FAIL TO PAY YOUR
206CONTRACTOR, YOUR CONTRACTOR MAY ALSO HAVE A LIEN ON YOUR
207PROPERTY. THIS MEANS IF A LIEN IS FILED YOUR PROPERTY COULD BE
208SOLD AGAINST YOUR WILL TO PAY FOR LABOR, MATERIALS, OR OTHER
209SERVICES THAT YOUR CONTRACTOR OR A SUBCONTRACTOR MAY HAVE FAILED
210TO PAY. TO PROTECT YOURSELF, YOU SHOULD STIPULATE IN THIS
211CONTRACT THAT BEFORE ANY PAYMENT IS MADE, YOUR CONTRACTOR IS
212REQUIRED TO PROVIDE YOU WITH A WRITTEN RELEASE OF LIEN FROM ANY
213PERSON OR COMPANY THAT HAS PROVIDED TO YOU A "NOTICE TO OWNER."
214FLORIDA'S CONSTRUCTION LIEN LAW IS COMPLEX, AND IT IS
215RECOMMENDED THAT YOU CONSULT AN ATTORNEY.
216     (2)(a)  If the contract is written, the notice must be in
217the contract document. If the contract is oral or implied, the
218notice must be provided in a document referencing the contract.
219     (b)  The failure to provide such written notice does not
220bar the enforcement of a lien against a person who has not been
221adversely affected.
222     (c)  Nothing in This section may not shall be construed to
223adversely affect the lien and bond rights of lienors who are not
224in privity with the owner. This section does not apply when the
225owner is a contractor licensed under chapter 489 or is a person
226who created parcels or offers parcels for sale or lease in the
227ordinary course of business.
228     Section 5.  Subsection (6) of section 713.02, Florida
229Statutes, is amended to read:
230     713.02  Types of lienors and exemptions.--
231     (6)  In any direct contract The owner and contractor may
232agree that require the contractor shall to furnish a payment
233bond as provided in s. 713.23, and upon receipt of the bond the
234owner is shall be exempt from the other provisions of this part
235as to that direct contract, but this does not exempt the owner
236from the lien of the contractor who furnishes the bond. If the
237bond is provided, it shall secure all liens subsequently
238accruing under this part as provided in s. 713.23.
239     Section 6.  Subsection (4) of section 713.07, Florida
240Statutes, is amended to read:
241     713.07  Priority of liens.--
242     (4)  If construction ceases or the direct contract is
243terminated before completion and the owner desires to recommence
244construction, he or she may pay all lienors in full or pro rata
245in accordance with s. 713.06(4) prior to recommencement in which
246event all liens for the recommenced construction shall take
247priority from such recommencement; or the owner may record an
248affidavit in the clerk's office stating his or her intention to
249recommence construction and that all lienors giving notice have
250been paid in full except those listed therein as not having been
251so paid in which event 30 days after such recording, the rights
252of any person acquiring any interest, lien, or encumbrance on
253said property or of any lienor on the recommenced construction
254shall be paramount to any lien on the prior construction unless
255such prior lienor records a claim of lien within said 30-day
256period. A copy of said affidavit shall be served on each lienor
257named therein. Before recommencing, the owner shall record and
258post a notice of commencement for the recommenced construction,
259as provided in s. 713.13.
260     Section 7.  Subsections (2) and (5) of section 713.08,
261Florida Statutes, are amended to read:
262     713.08  Claim of lien.--
263     (2)  The claim of lien shall be signed and sworn to or
264affirmed verified by the lienor or the lienor's her or his agent
265acquainted with the facts stated therein.
266     (5)  The claim of lien may be recorded at any time during
267the progress of the work or thereafter but not later than 90
268days after the final furnishing of the labor or services or
269materials by the lienor. However,; or, with respect to rental
270equipment, within 90 days after the date that the rental
271equipment was last on the job site available for use; provided
272if the original contractor defaults or the contract is
273terminated under s. 713.07(4), a no claim for a lien attaching
274prior to such termination may not default shall be recorded
275after 90 days following from the date of such termination
276default or 90 days after the final performance of labor or
277services or furnishing of materials, whichever occurs first. The
278time period for recording a claim of lien shall be measured from
279the last day of furnishing of labor, services, or materials by
280the lienor, whichever occurs first and shall not be measured by
281other standards, such as the issuance of a certificate of
282occupancy or the issuance of a certificate of substantial
283completion. The claim of lien shall be recorded in the clerk's
284office. If such real property is situated in two or more
285counties, the claim of lien shall be recorded in the clerk's
286office in each of such counties. The recording of the claim of
287lien shall be constructive notice to all persons of the contents
288and effect of such claim. The validity of the lien and the right
289to record a claim therefor shall not be affected by the
290insolvency, bankruptcy, or death of the owner before the claim
291of lien is recorded.
292     Section 8.  Paragraph (a) of subsection (1) of section
293713.13, Florida Statutes, is amended, subsections (5) and (6) of
294that section are renumbered as subsections (6) and (7),
295respectively, and a new subsection (5) is added to that section,
296to read:
297     713.13  Notice of commencement.--
298     (1)(a)  Except for an improvement that is exempt pursuant
299to s. 713.02(5), an owner or the owner's authorized agent before
300actually commencing to improve any real property, or
301recommencing completion of any improvement after default or
302abandonment, whether or not a project has a payment bond
303complying with s. 713.23, shall record a notice of commencement
304in the clerk's office and forthwith post either a certified copy
305thereof or a notarized statement that the notice of commencement
306has been filed for recording along with a copy thereof. The
307notice of commencement shall contain the following information:
308     1.  A description sufficient for identification of the real
309property to be improved. The description should include the
310legal description of the property and also should include the
311street address and tax folio number of the property if available
312or, if there is no street address available, such additional
313information as will describe the physical location of the real
314property to be improved.
315     2.  A general description of the improvement.
316     3.  The name and address of the owner, the owner's interest
317in the site of the improvement, and the name and address of the
318fee simple titleholder, if other than such owner.
319     4.  The name and address of the contractor.
320     5.  The name and address of the surety on the payment bond
321under s. 713.23, if any, and the amount of such bond.
322     6.  The name and address of any person making a loan for
323the construction of the improvements.
324     7.  The name and address within the state of a person other
325than himself or herself who may be designated by the owner as
326the person upon whom notices or other documents may be served
327under this part; and service upon the person so designated
328constitutes service upon the owner.
329     (5)(a)  A notice of commencement that is recorded within
330the effective period may be amended to extend the effective
331period, change erroneous information in the original notice, or
332add information that was omitted from the original notice.
333However, in order to change contractors, a new notice of
334commencement or notice of recommencement must be executed and
335recorded.
336     (b)  The amended notice must identify the official records
337book and page where the original notice of commencement is
338recorded, and a copy of the amended notice must be served by the
339owner upon the contractor and each lienor who serves notice
340before or within 30 days after the date the amended notice is
341recorded.
342     Section 9.  Subsections (5) and (6) of section 713.16,
343Florida Statutes, are amended to read:
344     713.16  Demand for copy of contract and statements of
345account; form.--
346     (5)(a)  Any lienor who has recorded filed a claim of lien
347may make written demand on the owner for a written statement
348under oath showing:
349     1.  The amount of the all direct contract under which the
350lien was recorded; contracts; the amount paid by or on behalf of
351the owner for all labor, services, and materials furnished
352pursuant to the direct contracts;
353     2.  The dates and amounts paid or to be paid by or on
354behalf of the owner for all improvements described in the any
355direct contract contracts; and
356     3.  The reasonable estimated costs of completing the,
357according to the terms and specifications of same, any direct
358contract under which the lien was claimed pursuant to the scope
359of the direct contract; and construction has ceased.
360     4.  If known, the actual cost of completion must be
361provided.
362     (b)  Any owner who does not provide the statement within 30
363days after demand, or who provides a false or fraudulent
364statement, is not a prevailing party for purposes of an award of
365attorney's fees under s. 713.29. The written demand must include
366the following warning in conspicuous type in substantially the
367following form:
368     WARNING: YOUR FAILURE TO FURNISH THE REQUESTED STATEMENT
369WITHIN 30 DAYS OR THE FURNISHING OF A FALSE STATEMENT WILL
370RESULT IN THE LOSS OF YOUR RIGHT TO RECOVER ATTORNEY FEES IN ANY
371ACTION TO ENFORCE THE CLAIM OF LIEN OF THE PERSON REQUESTING
372THIS STATEMENT.
373     (6)  For purposes of this section, the term "information"
374means the nature and quantity of the labor, services, and
375materials furnished or to be furnished by a lienor and the
376amount paid, the amount due, and the amount to become due on the
377lienor's account. The failure to furnish the statement under
378oath does not constitute an omission of information and shall
379deprive the lienor of his or her lien.
380     Section 10.  Section 713.18, Florida Statutes, is amended
381to read:
382     713.18  Manner of serving notices and other instruments.--
383     (1)  Service of notices, claims of lien, affidavits,
384assignments, and other instruments permitted or required under
385this part, or copies thereof when so permitted or required,
386unless otherwise specifically provided in this part, must be
387made by one of the following methods:
388     (a)  By actual delivery to the person to be served; or, if
389a partnership, to one of the partners; or, if a corporation, to
390an officer, director, managing agent, or business agent; or, if
391a limited liability company, to a member or manager thereof.
392     (b)  By sending the same by registered or certified mail,
393with postage prepaid, or by overnight or second-day delivery
394with evidence of delivery, which may be in an electronic format.
395     (c)  If the method specified in paragraph (a) or paragraph
396(b) cannot be accomplished, by posting on the premises.
397     (2)1.  Notwithstanding subsection (1), if a notice to
398owner, a notice to contractor under s. 713.23, or a preliminary
399notice under s. 255.05 is mailed by registered or certified mail
400with postage prepaid to the person to be served at any of the
401addresses set forth in subsection (3) subparagraph 2. within 40
402days after the date the lienor first furnishes labor, services,
403or materials, service of that notice is effective as of the date
404of mailing if the person who served the notice maintains a
405registered or certified mail log that shows the registered or
406certified mail number issued by the United States Postal
407Service, the name and address of the person served, and the date
408stamp of the United States Postal Service confirming the date of
409mailing or if the person who served the notice maintains
410electronic tracking records generated through use of the United
411States Postal Service Confirm service or a similar service
412containing the postal tracking number, the name and address of
413the person served, and verification of the date of receipt by
414the United States Postal Service.
415     (3)2.  If an instrument served pursuant to this section to
416the last address shown in the notice of commencement or any
417amendment thereto or, in the absence of a notice of
418commencement, to the last address shown in the building permit
419application, or to the last known address of the person to be
420served, is not received, but is returned as being "refused,"
421"moved, not forwardable," or "unclaimed," or is otherwise not
422delivered or deliverable through no fault of the person serving
423the item, then service is effective on the date the instrument
424notice was sent.
425     (c)  If none of the foregoing methods can be accomplished,
426by posting on the premises.
427     (4)(2)  If the real property is owned by more than one
428person or a partnership, a lienor may serve any notices or other
429papers under this part on any one of such owners or partners,
430and such notice is deemed notice to all owners and partners.
431     Section 11.  Subsection (1) of section 713.22, Florida
432Statutes, is amended to read:
433     713.22  Duration of lien.--
434     (1)  No lien provided by this part shall continue for a
435longer period than 1 year after the claim of lien has been
436recorded or 1 year after the recording of an amended claim of
437lien that shows a later date of final furnishing of labor,
438services, or materials, unless within that time an action to
439enforce the lien is commenced in a court of competent
440jurisdiction. The continuation of the lien effected by the
441commencement of the action shall not be good against creditors
442or subsequent purchasers for a valuable consideration and
443without notice, unless a notice of lis pendens is recorded.
444     Section 12.  Paragraph (c) of subsection (2) of section
445713.31, is amended to read:
446     713.31  Remedies in case of fraud or collusion.--
447     (2)
448     (c)  An owner against whose interest in real property a
449fraudulent lien is filed, or any contractor, subcontractor, or
450sub-subcontractor who suffers damages as a result of the filing
451of the fraudulent lien, shall have a right of action for damages
452occasioned thereby. The action may be instituted independently
453of any other action, or in connection with a summons to show
454cause under s. 713.21, or as a counterclaim or cross-claim to
455any action to enforce or to determine the validity of the lien.
456The prevailing party in an action under this paragraph may
457recover reasonable attorney's fees and costs. If the lienor who
458files a fraudulent lien is not the prevailing party, the lienor
459shall be liable to the owner or the defrauded party who prevails
460in an action under this subsection in damages, which shall
461include court costs, clerk's fees, a reasonable attorney's fee
462and costs for services in securing the discharge of the lien,
463the amount of any premium for a bond given to obtain the
464discharge of the lien, interest on any money deposited for the
465purpose of discharging the lien, and punitive damages in an
466amount not exceeding the difference between the amount claimed
467by the lienor to be due or to become due and the amount actually
468due or to become due.
469     Section 13.  Section 713.36, Florida Statutes, is repealed.
470     Section 14.  This act shall take effect July 1, 2007.


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