Introduction

The construction industry is dynamic and high risk: projects involve multiple parties, shifting schedules, tight margins, and complex regulations. Whether you are a property owner, general contractor, subcontractor, or supplier, legal issues can arise at any stage. From nonpayment, contract breaches, lien claims, delay disputes, to enforcement and appeals — the need for legal expertise is real.

In Florida, construction law is especially intricate. Statutes like Chapter 713, Part I govern construction liens, creating powerful but tightly regulated rights for those who provide labor or materials. Meanwhile, resolving disputes often involves alternative dispute resolution (ADR), contractual mandates, and strict deadlines. Without proper planning, even a small misstep can cost you.

In this article, we’ll walk through key elements of Florida construction law: how liens work, dispute resolution, contract drafting tips, enforcement, and how legal counsel can protect your position.

1. Construction Liens in Florida: The Core Tool for Securing Payment

1.1 Who Has Lien Rights?

Under Florida law, contractors, subcontractors, suppliers, architects, engineers, and other professionals who improve real property have lien rights — but only under specific conditions. Certain parties lack rights, such as suppliers more than two steps removed from direct contract privity, unlicensed contractors, or those working on public, bonded projects.

The lien law effectively leaps “privity” forward: even someone who did not contract directly with the owner may enforce a lien if statutory requirements are met.

1.2 Notice & Timing Requirements

Florida imposes strict deadlines and procedural steps. Key rules include:

• A Notice to Owner (also called “Preliminary Notice”) typically must be given by a subcontractor or supplier within 45 days of first providing labor or materials, or before the owner’s final payment.
• A Claim of Lien must be recorded in the county clerk’s office within 90 days from the last furnishing of labor or materials, or from contract termination, whichever is earlier.
• After filing, the lien claimant must serve a copy of the lien on the property owner (or contract party) within 15 days.
• To enforce the lien (foreclose), one must file suit within one year of recording, unless a “Notice of Contest of Lien” shortens the window (often to 60 days).

If any of these deadlines are missed or procedural missteps occur (e.g., omission in notice content), the lien may be invalidated or void.

1.3 Owner Protections & Duties

Property owners are not powerless. The statute provides mechanisms to reduce risk, including:

• Notice of Commencement: Owners often must record a Notice of Commencement for contracts exceeding certain amounts. This lets owners require lien waivers from contractors/subcontractors.
• Requirement for Release or Discharge: If owners pay funds, they can demand lien releases before paying contractors. Failure to do so may expose them to “double payment.”
• Challenging a lien: Owners can challenge format, timeliness, or licensing issues as defenses.

Understanding these protections helps you act proactively, whether you represent an owner or a claimant.

2. Dispute Resolution in Construction: Mediation, Arbitration & Litigation

2.1 Mediation: First Line Defense

Mediation is an informal, voluntary, (often mandatory) negotiation with a neutral third party who helps facilitate settlement — but doesn’t impose a binding decision.

In Florida, many courts require mediation before proceeding to trial, especially in construction or contract disputes.

The appeal of mediation: confidentiality, lower cost, speed, better control. Only if mediation fails does the conflict proceed to arbitration or court.

2.2 Arbitration: Binding Decision Outside Court

Many construction contracts include arbitration clauses requiring binding or nonbinding arbitration. In arbitration, an arbitrator or panel acts similarly to a judge and issues a decision based on contract terms and evidence.

Advantages: more expertise, speed, reduced formality, and potentially lower cost than litigation. Disadvantages: limited appeal rights, varying procedural fairness, and sometimes unexpected costs.

2.3 Litigation & Appeals

When mediation and arbitration fail, or when the dispute structure demands it, parties bring their dispute to court. Litigation offers full discovery, precedential judgments, and appellate review. But it’s more costly and time-consuming.

Appeals in construction cases typically contend with procedural errors, misinterpretation of contract terms, or misapplication of law (especially lien statute). Having experts and clear contract drafting is critical.

2.4 Contract Clauses that Shape Dispute Process

Many construction contracts layer dispute resolution steps: first negotiation, then mediation, then arbitration or court.

Other important clauses:

• Venue & jurisdiction: where litigation or arbitration must occur (often tied to project location)
• Mandatory pre-suit steps: requiring dispute notice, waiting periods, negotiation attempts
• Confidentiality provisions: protecting sensitive materials disclosed in mediation/arbitration
• Attorney’s fee / costs clauses: mutual or unilateral (Florida often requires mutual)

A well-drafted contract sets the fighting ground before any dispute arises.

3. Contracts & Risk Management in Construction

3.1 Drafting with Foresight

Before work begins, strong contract drafting is your first line of defense. Include:

• Clear scope of work and specifications
• Payment schedule, retainage terms, and conditions
• Change order procedures and authority
• Delay, liquidated damages, or bonus clauses
• Dispute resolution path (venue, ADR steps)
• Insurance, bond, indemnity, warranty allocations
• Licensing, permit, compliance conditions
• Force majeure, termination rights, default definitions

These terms become your roadmap during disputes (especially in arbitration).

3.2 Bonds & Security

On public or large private projects, payment bonds or performance bonds may be required under law (or contract). Claims may arise under bonds if a claimant cannot recover via lien or contract.

For example, Florida requires bonds in some public projects, and parties may pursue bond claims instead of or in addition to liens.

4. Enforcing & Recovering: From Lien Foreclosure to Legal Remedies

4.1 Foreclosing a Lien

When a lien is filed, the claimant must bring a foreclosure action within one year from lien recordation, or earlier under contest triggers. If successful, the court may order sale of the property to satisfy the debt.

4.2 Other Remedies

Depending on the contract, you might also pursue:

• Money damages / breach of contract
• Specific performance (rare for non-unique goods but possible for unique improvements)
• Injunctions or equitable relief, for example to prevent interference or misuse
• Rescission or reformation, when contract errors or misrepresentations occur
• Attorney’s fees & costs, where contract or statute permits

Collecting on judgments may require garnishment, liens on other property, or negotiation.

5. Why You Need Legal Representation from Day One

Construction law is unforgiving of missteps. A missed deadline, improper notice, or drafting omission can cost you your claim — or expose you to double payments, penalties, or invalidated rights.

An experienced construction law attorney guides you through:

• Pre-construction risk assessment and contract review
• Notice and lien preservation strategies
• Dispute avoidance via negotiation or ADR
• Enforcement or defense of liens and claims
• Litigation strategy, appeals, and navigating complicated statutory rules
• Compliance with evolving laws (e.g. Florida’s 2023 amendments to lien law)

When projects involve multiple layers of contractors, lenders, and owners — often in multiple jurisdictions — every procedural and contractual detail matters.

In Florida, construction law is built on a delicate balance of rights and strict procedures. Whether you are owed money, defending a lien, or structuring a major project, legal missteps are costly.

If you’re involved in construction—owner, contractor, supplier, or design professional—consider reaching out early. Let Fredrickson Law Firm help you draft strong agreements, preserve your rights, and navigate disputes with clarity and confidence.