Source: https://www.levelset.com/resolve/prompt-payment/florida-prompt-payment-law/
Timestamp: 2019-04-20 06:16:58
Document Index: 3819852

Matched Legal Cases: ['§ 713', '§ 255', '§ 218', '§ 337', 'art.\n218', 'art.\n218']

Florida Prompt Payment Laws - FAQs and Resources | Levelset
Florida Prompt Payment Overview
Florida’s prompt payment statutes set forth specific timeframes when general contractors, subcontractors, suppliers, and others involved with a construction project must be paid. This page provides an overview of these regulations, and addresses some frequently asked questions related to the Florida prompt payment laws.
Florida Prompt Payment for Private Projects FAQs
Do I Have To Send A Letter or File Anything To Qualify For Prompt Payment Penalties or Remedies in Florida?
The Florida prompt payment act applies upon pursuant to the terms of the contract, when the party requesting payment has submitted documents that may be required (sworn statements, affidavits, etc.) by Florida law or request of the owner, and has submitted a proper request for payment.
Can I Include Prompt Payment Fees In My Florida Mechanics Liens Claim or Bond Claim?
No. Florida law does not allow for the recovery of miscellaneous amounts in a mechanics lien.
If payment is received late, and none of the valid reasons for late payment apply, and the party requesting payment has submitted a proper pay application, the party to be paid is entitled to recover the interest allowed by law (at the rate set by the contract, or the rate set by Florida’s CFO, whichever is greater). As a practical matter, it may be difficult to recover amounts in excess of the contractually due amount without filing suit.
Florida allows payments to be withheld for the following reasons:
A bona fide dispute,
Note, however, that a dispute over some portion of the payment doesn’t allow the paying party to withhold payments for amounts not in dispute.
Florida Prompt Payment for Public Projects FAQs
In order for the prompt payment act to apply, the party requesting payment must be entitled to payment (performed under the contract, and submitted a proper pay application conforming to the requirements of the contract).
In order to recover attorneys’ fees, a party must prevail in an action to recover.
No. Florida law does not allow for the recovery of miscellaneous amounts in a bond claim.
If payment is received late, and none of the valid reasons for late payment apply, and the party requesting payment has submitted a proper pay application, the party to be paid is entitled to recover the interest allowed by law (at the rate set by the contract, or the rate set by Florida’s CFO, whichever is greater). Florida law specifically sets forth that “[n]o contract between a public entity or a local governmental entity and a contractor may prohibit collection of interest on late payments.”
Florida allows payments to be withheld for a “bona fide” or “good faith” dispute as to the amount owed (depending on statute).
Florida Prompt Payment Statutes
Getting informed about prompt payment laws is important. An examination of Florida’s prompt payment statutes, the rules and regulations related to payment timing, is important to know your rights and responsibilities as a party on a construction project. Florida’s specific laws can be found in: Fla. Stat. §§ 713.346, 715.12, Fla. Stat. §§ 255.0705 et seq., 215.422; Localities: §§ 218.70 et seq.; FDOT: § 337.141, and are reproduced below.
713.346: Payment on Construction Contracts
715.12: Construction Contract Prompt Payment Law
(a) Any payment due under the provisions of subsection (4), excluding any amounts withheld pursuant to subsection (7), shall bear interest at the rate specified in s. 55.03, computed beginning on the 14th day after payment is due pursuant to subsection (4).
(a) The right to receive interest on a payment under this section is not an exclusive remedy. This section does not modify the remedies available to any person under the terms of a contract or under any other statute. This section does not modify the rights of any person to recover prejudgment interest awarded to the prevailing party in any civil action or arbitration case. During the period that interest accrues under this section, the interest rate shall be the rate specified in s. 55.03 or the rate specified in the contract, whichever is greater. A person shall not be entitled to receive both the contract interest and the statutory interest specified in this section.
(a) An owner and a contractor may agree to a provision that allows the owner to withhold a portion of each progress payment until substantial completion of the entire project. The owner shall pay the contractor the balance of the contract price, including the amounts withheld from the progress payments, within 14 days after any of the following events occur.
225.0705: Popular name.—Sections 255.0705-255.078 may be cited as the “Florida Prompt Payment Act.”
255.071 Payment of subcontractors, sub-subcontractors, materialmen, and suppliers on construction contracts for public projects
(1) Any person, firm, or corporation who receives a payment from the state or any county, city, or political subdivision of the state, or other public authority, for the construction of a public building, for the prosecution and completion of a public work, or for repairs upon a public building or public work shall pay, in accordance with the contract terms, the undisputed contract obligations for labor, services, or materials provided on account of such improvements.
(2) The failure to pay any undisputed obligations for such labor, services, or materials within 30 days after the date the labor, services, or materials were furnished and payment for such labor, services, or materials became due, or within the time limitations set forth in s. 255.073(3), whichever last occurs, shall entitle any person providing such labor, services, or materials to the procedures specified in subsection (3) and the remedies provided in subsection (4).
(3) Any person providing labor, services, or materials for the construction of a public building, for the prosecution and completion of a public work, or for repairs upon a public building or public work improvements to real property may file a verified complaint alleging:
(a) The existence of a contract for providing such labor, services, or materials to improve real property.
(e) The amount that remains unpaid pursuant to the contract and the amount thereof that is undisputed.
(g) That the person against whom the complaint was filed has received payment on account of the labor, services, or materials described in the complaint and, as of the date the complaint was filed, has failed to make payment within the time limitations set forth in s. 255.073(3).
(8) The provisions of this section shall also apply to any contract between a subcontractor and a sub-subcontractor or supplier and any contract between a sub-subcontractor and supplier on any project for the construction of a public building, for the prosecution and completion of a public work, or for repairs upon a public building or public work.
255.072: Definitions
As used in ss. 255.073-255.078, the term:
255.073: Timely Payment for Purchase of Construction Services
255.074: Procedures for Calculation of Payment Due Dates
255.075: Mandatory Interest
A contract between a public entity and a contractor may not prohibit the collection of late payment interest charges authorized under s. 255.073(4).
255.076: Award of Court Costs and Attorney's Fees
In an action to recover amounts due for construction services purchased by a public entity, the court shall award court costs and reasonable attorney’s fees, including fees incurred through any appeal, to the prevailing party, if the court finds that the nonprevailing party withheld any portion of the payment that is the subject of the action without any reasonable basis in law or fact to dispute the prevailing party’s claim to those amounts.
255.077: Project Closeout and Payment of Retainage
(1) Each contract for construction services between a public entity and a contractor must provide for the development of a list of items required to render complete, satisfactory, and acceptable the construction services purchased by the public entity. The contract must specify the process for the development of the list, including responsibilities of the public entity and the contractor in developing and reviewing the list and a reasonable time for developing the list, as follows:
(a) For construction projects having an estimated cost of less than $10 million, within 30 calendar days after reaching substantial completion of the construction services purchased as defined in the contract, or, if not defined in the contract, upon reaching beneficial occupancy or use; or
(b) For construction projects having an estimated cost of $10 million or more, within 30 calendar days, unless otherwise extended by contract not to exceed 60 calendar days, after reaching substantial completion of the construction services purchased as defined in the contract, or, if not defined in the contract, upon reaching beneficial occupancy or use.
(2) If the contract between the public entity and the contractor relates to the purchase of construction services on more than one building or structure, or involves a multiphased project, the contract must provide for the development of a list of items required to render complete, satisfactory, and acceptable all the construction services purchased pursuant to the contract for each building, structure, or phase of the project within the time limitations provided in subsection (1).
(3) The failure to include any corrective work or pending items not yet completed on the list developed pursuant to subsection (1) or subsection (2) does not alter the responsibility of the contractor to complete all the construction services purchased pursuant to the contract.
(4) Upon completion of all items on the list, the contractor may submit a payment request for all remaining retainage withheld by the public entity pursuant to s. 255.078. If a good faith dispute exists as to whether one or more items identified on the list have been completed pursuant to the contract, the public entity may continue to withhold an amount not to exceed 150 percent of the total costs to complete such items.
(5) All items that require correction under the contract and that are identified after the preparation and delivery of the list remain the obligation of the contractor as defined by the contract.
(6) Warranty items may not affect the final payment of retainage as provided in this section or as provided in the contract between the contractor and its subcontractors and suppliers.
(7) Retainage may not be held by a public entity or a contractor to secure payment of insurance premiums under a consolidated insurance program or series of insurance policies issued to a public entity or a contractor for a project or group of projects, and the final payment of retainage as provided in this section may not be delayed pending a final audit by the public entity’s or contractor’s insurance provider.
(8) If a public entity fails to comply with its responsibilities to develop the list required under subsection (1) or subsection (2), as defined in the contract, within the time limitations provided in subsection (1), the contractor may submit a payment request for all remaining retainage withheld by the public entity pursuant to s. 255.078. The public entity need not pay or process any payment request for retainage if the contractor has, in whole or in part, failed to cooperate with the public entity in the development of the list or failed to perform its contractual responsibilities, if any, with regard to the development of the list or if s. 255.078(6) applies.
255.078: Public Construction Retainage
215.422: Payments, Warrants, and Invoices; Processing Time Limits; Dispute Resolution; Agency or Judicial Branch Compliance
218.70: Popular name.
This part may be cited as the “Local Government Prompt Payment Act.”
218.71: Purpose and Policy
218.72: Definitions
281.73: Timely Payment for Nonconstruction Services
The time at which payment is due for a purchase other than construction services by a local governmental entity must be calculated from:
(1) The date on which a proper invoice is received by the chief disbursement officer of the local governmental entity after approval by the governing body, if required; or
(2) If a proper invoice is not received by the local governmental entity, the date:
(a) On which delivery of personal property is accepted by the local governmental entity;
(b) On which services are completed;
(c) On which the rental period begins; or
(d) On which the local governmental entity and vendor agree in a contract that provides dates relative to payment periods; whichever date is latest.
218.735: Timely Payment for Purchase of Construction Services
218.74: Procedure for Calculation of Payment Due Dates
218.75: Mandatory Interest
No contract between a local governmental entity and a vendor or a provider of construction services shall prohibit the collection of late payment interest charges allowable under this part.
218.76 Improper Payment Request or Invoice: Resolution of Disputes
218.77: Payment by Federal Funds
A local governmental entity which intends to pay for a purchase with federal funds shall not make such purchase without reasonable assurance that federal funds to cover the cost thereof will be received. Where payment or the time of payment is contingent on receipt of federal funds or federal approval, any contract and any solicitation to bid shall clearly state such contingency.
218.78: Report of Interest
If the total amount of interest paid during the preceding fiscal year exceeds $250, each local governmental entity shall, during December of each year, report to the board of county commissioners or the municipal governing body the number of interest payments made by it during the preceding fiscal year and the total amount of such payments made under this part.
218.79: Repeal of Conflicting Laws
All laws and parts of laws in conflict with this part are repealed.
218.80: Public Bid Disclosure Act
337.141: Payment on Construction or Maintenance Contracts