The 2005 Florida Legislature will again address a number of issues of interest to the construction industry in the sixty day session that starts March 8. The leadership of the House and Senate has changed and it appears to be for the better. The Speaker of the House, Allan Bense, and the President of the Senate, Tom Lee, seem to have a much better relationship than their predecessors. A number of these bills are similar to ones that failed last year. These are the bills at the time this was written and are subject to rapid change during the legislative process. To follow progress of these bills go to: http://www.leg.state.fl.us/Welcome/index.cfm
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• Would not allow any bond under Section 255.05 (which requires bonds for public projects) to restrict coverage of the claimants identified in the statute as protected by the bond or to restrict the venue of any proceeding relating to the bond.
• Would amend Section 489.129 to increase the maximum fines that may be levied on contractors for disciplinary violations from $5,000 to $10,000.
• Section 713.015 requires that a notice explaining the construction lien law be included in a contract for residential work in order for the contractor to have lien rights. It must be in 18 point type which takes up most of a page. This provision would change the size requirement to capital letters no less than the size used in the body of the contract. It would also make it clear that the lien rights of subcontractors and suppliers not contracting with the owner are not affected by the failure to have this notice in the contract.
• Would Amend Section 713.02 which takes away any lien rights of any contractor, or subcontractor who is not properly licensed to provide that no one else in the chain of contracting is prevented from filing a lien if they are properly licensed.
• Would modify Section 713.04 relating to subdivision improvements to require that an owner get a final contractor's affidavit as required for other types of construction before a payment will qualify as a proper payment under the lien statute.
• Would make explicit the obligation in Section 713.08 to serve a copy of a claim of lien on the owner.
• Would amend Section 713.13 to require that only the payment bond has to be recorded with the notice of commencement. It would also clarify the procedure for use of an unrecorded payment bond to transfer a claim of lien and extend the time limit for serving notices.
• Would allow the explanation of the lien law that the building department is required to provide to the owner to be delivered by email, fax or personal delivery.
• Would clarify that a notice of commencement does not have to be recorded as a condition to the issuance of a building permit.
• Would amend Section 713.24 to clarify the procedures when a lien is transferred to a bond during an action to foreclose
• Section 713.345 requires that money received for improving real estate be applied to payments for work performed on that property. The current law provides that a misapplication of funds of less than $20,000.00 is a third degree felony. That would be changed to provide that any amount less then $100,000.00 would be a second degree felony and maintain the provision that anything in excess of $100,000.00 is first degree felony. To
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Would require licensing of those performing mold assessment and remediation and sets out licensing requirements. An examination and continuing education would be required. Last year's version of this bill would not allow licensing for both assessment and remediation. This version would only forbid a licensed holder from performing mold assessment and remediation on the same project.
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Section 455.271 provides that if a license is delinquent and not brought into active or inactive status before the expiration of the current license recycle, the license is voided. In any subsequent licensing a new application and new testing is required. This bill would modify that requirement to allow reinstatement of a license at discretion of DBPR or any board having jurisdiction over the license where illness or unusual hardship can be shown.
This bill would exempt employees of a residential condominium or homeowner's association from alarm system licensing requirements if the system is owned or leased by the association and is designed to protect only the members of the association.
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This bill would amend Section 489.113 which was amended last year to allow a licensed general contractor to perform all work which required a licensed underground utility contractor. This amendment would restrict general contractors to new site development work, site redevelopment work, mobile home parks and commercial property. It would grandfather in certified general contractors who can show that the license holder has at least five years experience in sewer, water and storm sewer system, two of which must be in a supervisory capacity with the qualified business entity and be an employee or have an ownership interest in the business entity. The ability to do this would expire April 1, 2006.
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This bill would require use of the bond form specified in Section 255.05. Many public entities have written their own bond forms which often have requirements in excess of the requirements of Section 255.05. This has resulted in these bonds being designated as common law bonds. This then eliminates the notice requirements found in Section 255.05.
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This would revise the Florida Prompt Payment Act which applies to local government entities and establish a prompt payment act applicable to the state.
• Would shorten the time period which the governmental entity has to make payment
• Would remove the ability of a contractor to withhold disputed amounts from subcontractors if the funds have been received from the governmental entity.
• Would address the problem of the rolling punchlist by requiring every construction contract with a local government to have a process for preparing a punch list and would set time limits for its preparation. Upon completion of all items on the list, the contractor would be entitled to its retainage. In the event of a dispute about an item, the governmental entity may withhold only 150% of the cost to complete such items. A contractor would still be required to correct defective work as a warranty item.
• Would reduce retainage, by allowing 10% retainage only through the first 50% of the project. It would then be reduced to 5% of each subsequent payment. The general contractor is allowed to hold 10% retainage throughout the job on subcontractors, but the general contractor may not request release of those funds from the government entity.
• Would also modify the procedure for payment of a subcontractor by a general contractor on a public project mostly by shortening time frames.
• Prompt payment requirements similar to those for local government entities would be applicable to the state.
• Would add limitations to the time for bringing suits for retainage on Section 255.05 bonds. The suit may be filed only where the public entity has paid the retainage to the contractor or seventy days after the contractor sent in his final application for payment or claimant has asked the contractor, in writing, when retainage was received and the contractor failed to respond, in writing, withing ten days. If none of these conditions are satisfied the statute of limitations extends until a hundred and twenty (120) days after one of the conditions is met.
• None of these changes would apply to any existing contract or to any project advertised for bid prior to October 1, 2005.
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This bill would clarify the use of private providers for building inspection and plan review services.
• Would allow contractors to deal with the building department on behalf of the owner.
• Would revise notice requirements when private providers are to be used.
• Would revise procedure for issuing permits.
• Would allow waiver of inspection records requirement by the local government where the records are posted on site.
• Would allow establishment of a registration system for licensed private providers.
• Would clarify the authority of the local building official to issue emergency stop work orders.
• Would allow work to go forward on the building after inspection and approval by a private provider without waiting for completion of audit inspections ordered by local building officials.
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