Florida's Construction Lien Law Updates: What You Need to Know

Florida's construction lien law is a complex body of law that protects the rights of contractors, subcontractors, material suppliers, and other parties who provide labor or materials for construction projects. The law was recently updated, with a number of changes taking effect on October 1, 2023. Our firm routinely advises construction industry professionals (such as roofers, concrete contractors, general contractors, HVAC contractors, plumbers, and others) on how to best navigate Florida lien law.

Here are some of the key updates to the Florida construction lien law, with statutory references:

Expanded definition of "Contractor" (Fla. Stat. § 713.01)

The definition of "Contractor" under the law now includes licensed general contractors and building contractors who provide construction management services or program management services. This means that these parties will now have the same rights and obligations under the law as other contractors.

New notice of termination requirements (Fla. Stat. § 713.132)

Project owners are now required to serve a copy of the notice of termination on each lienor that has a direct contract with the owner, and on each lienor that timely and properly served a notice to owner, before the owner records a notice of termination. The notice of termination must also be served on any lienor without a direct contract with an owner, but that has timely served a notice to owner and began work before the owner recorded its notice of termination.

Increased threshold for building permit requirements (Fla. Stat. § 713.135)

Authorities that issue building permits are now required to require an applicant to file a certified copy of a notice of commencement with the issuing authority before the first inspection, if the direct contract is greater than $5,000. This increases the threshold amount from $2,500 to $5,000.

Award of attorneys' fees in payment bond arbitrations (Fla. Stat. § 713.18)

Arbitrators in payment bond arbitrations are now authorized to award attorneys' fees to the prevailing party. This change is intended to make it more affordable for lienors to pursue their claims against payment bonds.

New requirements for satisfaction and release of construction liens (Fla. Stat. § 713.21)

Any satisfaction or release of a construction lien, recorded in the clerk's office, must now include the lienor's notarized signature, and the official records' reference number and recording date.

New notice of nonpayment requirements (Fla. Stat. § 713.23)

Lienors must now serve their notices of nonpayment on both the contractor and the contractor's surety. The amendment will also affect the timing of a notice of nonpayment for equipment rental, which may not be served later than 90 days after the date that the rental equipment was on the site of the improvement and available for use.

Increased amounts for bonds for liens transferred to security (Fla. Stat. § 713.24)

The amounts of any bonds for liens transferred to security have been increased from "an amount equal to the amount demanded in such claim of lien, plus interest thereon at the legal rate for 3 years, plus $1,000 or 25 percent of the amount demanded in the claim of lien…" to "an amount equal to the amount demanded in such claim of lien, plus interest thereon at the legal rate for 3 years, plus $5,000 or 25 percent of the amount demanded in the claim of lien…"

Prevailing party fees in actions to enforce liens (Fla. Stat. § 713.29)

The amended Construction Lien Law provides for prevailing party fees in actions brought to enforce liens, including liens that have been transferred to security. This means that the winning party in a lien enforcement action may be awarded attorneys' fees and other costs.

These are just some of the key updates to the Florida construction lien law. If you are involved in a construction project in Florida, it is important to consult with an experienced construction attorney to understand your rights and obligations under the law. Contact Munizzi Law Firm’s attorneys for more information.