FLORIDA
CONSTRUCTION LAW
TABLE
OF CONTENTS
CHAPTER
ONE - INTRODUCTION
1.1
APPLICABLE STATUTES AND REGULATIONS
1.1.1
Fla. Stat.
§
95.11
(Statute of Limitations)
1.1.2 Fla. Stat. § 255
(Publicly Owned Property)
1.1.3 Fla. Stat. § 489
(Contracting)
1.1.4 Fla. Stat. § 553
(Building Code)
1.1.5 Fla. Stat. § 558
(Construction Defects)
1.1.6 Fla. Stat. § 682
(Arbitration)
1.1.7 Fla. Stat. § 713
(Construction Liens)
1.2
PARTIES IN THE CONSTRUCTION ARENA
1.3
PROJECT DELIVERY AND PRICING METHODS
1.3.1 Design-Bid-Build
1.3.2 Design/Build
1.3.3 Construction Manager
1.3.4 Multiple Prime
1.3.5 Fast Track
1.3.6 Fixed Price/Stipulated
Sum
1.3.7 Cost Plus Fee
1.3.8 Guaranteed Maximum Price
1.3.9 Unit Price
1.3.10 Public Private
Partnerships
1.3.11 Integrated Project Delivery
CHAPTER
TWO -
LICENSING REQUIREMENTS
2.1
PURPOSE OF CONTRACTOR LICENSING LAW
2.2
DEFINITIONS
2.3
CERTIFIED, REGISTERED AND SPECIALTY CONTRACTORS
2.4
EXEMPTIONS FROM LICENSURE
2.5
QUALIFIER FOR CONTRACTING COMPANIES
2.5.1 Responsibilities
2.5.2 Secondary Qualifying
Agents
2.5.3 Death, Termination or
Retirement
2.5.4 Qualifying Agent’s
Liability
2.6
CONTRACTOR LICENSURE REQUIREMENTS
2.6.1 Examination
2.6.2 Experience/Education
2.6.3 Financial Responsibility and
Stability
2.6.4 Good Moral Character
2.6.5 Criminal Background
2.6.6 Insurance
2.7
DISCIPLINARY GROUNDS
2.8
LICENSING OF DESIGN PROFESSIONALS
2.8.1 Architects
2.8.2 Engineers
2.8.3 Architect and Engineer
Combinations
2.8.4 Penalties
2.9
ENFORCEABILITY OF CONTRACTS IN ABSENCE OF LICENSE
2.9.1 Defenses
2.9.2 Penalties for
Non-Compliance
2.9.3 Determination of the Applicable
Version of Section 489.128
CHAPTER
THREE - DESIGN PROFESSIONALS
3.1
TYPICAL SCOPE OF WORK
3.2
LICENSING
3.3
STANDARD OF CARE
3.4
LIABILITY TO OWNER, CONTRACTOR AND OTHER THIRD PARTIES
3.4.1 Causes of Action By
Contractor
3.4.2 Causes of Action By Other Third
Parties
3.5
BUILDING CODE VIOLATIONS
3.6
BUILDING INSPECTION OFFICIALS
3.6.1 Building Official
3.6.2 Private Provider
3.6.3 Sovereign Immunity
3.6.4 Inspections of
Construction
3.6.5 Completion of Inspections
3.7
STATUTE OF LIMITATIONS
3.8
LIEN CLAIMS BY DESIGN PROFESSIONAL
CHAPTER
FOUR - CONSTRUCTION LENDING
4.1
CONSTRUCTION LOAN AGREEMENTS
4.1.1 Representations and Warranties
4.1.2 Covenants
4.1.3 Disbursement Conditions
4.1.4 Payment and Performance
Bonds
4.1.5 Assignment Documents
4.1.6 Lender’s Completion of
Construction
4.2
TITLE INSURANCE ASPECTS OF CONSTRUCTION LOANS
4.3
LENDER LIABILITY ISSUES
4.3.1 Lender’s Obligation to
file a Notice of Commencement
4.3.2 Lender Liability for Breach of
Contract
4.3.3 Lender Liability to Contractors
and Subcontractors
4.4
EQUITABLE LIENS AND QUANTUM MERUIT
CHAPTER
FIVE - BIDDING
5.1
BIDDING ON PRIVATE AND PUBLIC PROJECTS
5.2
BID PROCESS
5.3
BID SELECTION
5.4
BID ERRORS
5.5
REJECTION OF BIDS
5.6
BID BONDS
5.7
BID PROTESTS
5.8
RELIEF BEFORE AND AFTER AWARD OF CONTRACT
CHAPTER
SIX - CONSTRUCTION CONTRACTS
AND COMMON PROVISIONS
6.1
ORAL AND IMPLIED CONTRACTS
6.2
COVENANT OF GOOD FAITH AND FAIR DEALING
6.3
AMBIGUITY
6.4
INCORPORATION BY REFERENCE AND FLOW DOWN PROVISIONS
6.5
SCOPE OF WORK
6.6
GENERAL CONDITIONS
6.7
PAYMENT CLAUSES
6.8
PAY WHEN PAID AND PAY IF PAID
6.9 PROMPT PAYMENT
6.10
RETAINAGE
6.11
RELEASES
6.12
NO DAMAGES FOR DELAY
6.13
LIQUIDATED DAMAGES
6.14
WAIVER OF CONSEQUENTIAL DAMAGES
6.15
INSURANCE AND BONDING
6.16
INDEMNIFICATION
6.17
DIFFERING SITE CONDITIONS
6.17.1 Duty to Investigate
6.17.2 Duty to Disclose
6.18
DEFAULT AND TERMINATION
6.19
SUBSTANTIAL COMPLETION
6.20
WARRANTIES
6.21
DISPUTE RESOLUTION: MEDIATION, ARBITRATION AND LITIGATION
6.22
ATTORNEYS FEES AND INTEREST
CHAPTER
SEVEN - CHANGE ORDERS AND
EXTRA WORK
7.1
CHANGES TO THE SCOPE OF WORK
7.2
CHANGE ORDER NOTICE PROVISIONS
7.3
WAIVER AND MODIFICATION OF REQUIREMENT FOR WRITTEN CHANGE ORDERS
7.4
CARDINAL CHANGES TO THE CONTRACT
CHAPTER
EIGHT - PROMPT PAYMENT
8.1
Local Government Prompt Payment Act - Florida Statute Section
218.70
8.2
Payment Obligations In The Florida Construction Lien Law - Florida
Statute Section 713.346
8.3
The Florida Prompt Payment Act - Florida Statute Section
255.071
8.4
Payment to Professionals – Florida Statute Section
287.0585
8.5
Federal Prompt Payment Act – 31 U.S.C. 3901
CHAPTER
NINE - THE NOTICE AND
OPPORTUNITY TO CURE ACT
CHAPTER
TEN - DAMAGES AND REMEDIES
10.1
MEASURE OF DAMAGES FOR BREACH OF CONTRACT
10.1.1 Substantial Performance
10.1.2 Partial Performance
10.2
CONTRACTOR’S DAMAGES
10.2.1 Extra Work
10.2.2 Delay Damages
10.2.3 Extended Jobsite Overhead
(General Conditions)
10.2.4 Extended Home Office Overhead
(Eichleay Formula)
10.2.5 Acceleration
10.2.6 Inefficiency/Disruption
10.2.7 Liquidated Damages
10.2.8 Concurrent Delay
10.2.9 Prompt Payment
10.2.10 Lost Profits
10.2.11 Quantum Meruit and Unjust
Enrichment
10.2.12 Consequential Damages
10.2.13 Pre-judgment Interest
10.2.14 Attorneys Fees
10.3
OWNER’S DAMAGES
10.3.1 Cost of Construction
10.3.2 Economic Waste
10.3.3 Delay Damages
CHAPTER
ELEVEN - DEFENSES TO DAMAGE
CLAIMS
11.1
STATUTE OF LIMITATIONS
11.2
SPEARIN DOCTRINE
11.3
SLAVIN DOCTRINE
11.4
ECONOMIC LOSS RULE
CHAPTER
TWELVE - CONSTRUCTION LIENS
12.1
WHO CAN LIEN
12.2
NOTICE REQUIREMENTS
12.2.1 Notice of Commencement
12.2.2 Notice to Owner
12.2.3 Notice of Non-payment to Surety
12.3
CLAIM OF LIEN
12.4
CONTENTS OF THE LIEN
12.5
LEASEHOLD INTERESTS
12.6
CONDOMINIUM INTERESTS
12.7
APPORTIONING THE LIEN
12.8
FINAL CONTRACTOR’S AFFIDAVIT
12.9
SWORN STATEMENT OF ACCOUNT
12.10
DURATION OF LIEN/FILING OF LAWSUIT TO FORECLOSE
12.11
NOTICE OF CONTEST/ORDER TO SHOW CAUSE
12.12
FRAUDULENT LIENS
12.13
BONDS AS ALTERNATIVE TO LIENS
12.14
ATTORNEYS FEES
CHAPTER
THIRTEEN - BONDS
13.1
INSURANCE v. SURETYSHIP
13.2
PUBLIC AND PRIVATE PROJECTS
13.3
PAYMENT BONDS
13.3.1 Parties Covered
13.3.2 Private Projects
13.3.3 Public (State) Projects
13.3.4 Public (Federal) Projects -
Miller Act
13.3.5 Common Law Bonds
13.3.6 Surety Defenses to Payment Bond
Claims
13.4
PERFORMANCE BONDS
13.4.1 Surety’s Role Before
Principal’s Default
13.4.2 Surety’s Role Upon
Declaration of Default and/or
Termination of Principal’s Contract
13.4.3 Surety’s Options After
Declaration of Default
13.4.4 Surety’s
Defenses
13.4.5 Private Projects
13.4.6 Public (State) Projects
13.4.7 Public (Federal) Projects -
Miller Act
13.5
BID BONDS
13.6
ATTORNEY’S FEES
CHAPTER
FOURTEEN - INSURANCE
14.1
COMPREHENSIVE GENERAL LIABILITY INSURANCE (“CGL”)
14.1.1 Duty to Defend v. Duty to
Indemnify
14.1.2 Occurrence within the Policy
Period
14.1.3 Exclusions and Limitations
14.2
BUILDER’S RISK
14.2.1 Property Covered
14.2.2 Property Not Covered
14.2.3 Coverage Period
14.2.4 Exclusion
14.3
PROFESSIONAL LIABILITY
14.4
WRAP, OCIP AND CCIP
CHAPTER FIFTEEN - CONDOMINIUMS
15.1
ASSOCIATION CAUSES OF ACTION
15.1.1 Statutory Warranties
15.1.2 Express Warranties
15.1.3 Implied Warranties
15.1.4 Building Code Violations
15.1.5 Negligence
15.1.6 Florida Deceptive and Unfair
Trade Practices
15.1.7 Subsequent Purchasers
15.2
DEFENSES TO ASSOCIATION’S CAUSES OF ACTION
15.2.1 Lack of Maintenance
15.2.2 Statute of Limitations
15.3
CONVERSIONS
15.3.1 Disclosures
15.3.2 Reserves and Warranties
CHAPTER
SIXTEEN -
DISPUTE RESOLUTION
16.1
MEDIATION
16.1.1 Advantages/Disadvantages
16.1.2 Privileged
Communications
16.2
ARBITRATION
16.2.1 The Arbitration Clause
16.2.2 Arbitrable Issues
16.2.3 Waiver
16.2.4 Binding Effect of Arbitration
Awards
16.2.5 Federal Arbitration Act
16.2.6 Advantages/Disadvantages to
Arbitration