When construction companies run into construction payment disputes with Florida-based general contractors or developers, there are several legal remedies available. Knowing these options can help companies protect themselves and get paid for the work they’ve done.

Construction Lien Rights

Florida’s Construction Lien Law, found in Chapter 713 of Florida Statutes, provides powerful tools for securing payment. Construction companies must carefully follow statutory requirements to preserve lien rights. This includes serving a Notice to Owner within 45 days of first providing labor, materials, or services to the project, and recording the lien within 90 days of last work.

Timing proves critical in lien matters. Missing deadlines can result in loss of lien rights, leaving companies with fewer remedies for recovery. Proper documentation of work performed, materials supplied, and payment history strengthens a company’s position when asserting lien rights.

Alternative Resolution for Construction Payment Disputes

Before pursuing litigation, companies might consider alternative dispute resolution methods. Mediation and arbitration are cost-effective alternatives to court action. These methods often resolve disputes more quickly than litigation while preserving business relationships.

Mediation allows parties to work with a neutral third party to reach agreement. The mediator facilitates discussion but doesn’t impose decisions. Arbitration resembles a simplified trial, with an arbitrator hearing evidence and making binding decisions.

Breach of Contract Claims

When lien rights aren’t available or prove insufficient, breach of contract claims offer another avenue for recovery in construction payment disputes. Successful contract claims require clear documentation of contract terms and evidence of performance. Companies must demonstrate both the breach and resulting damages, while ensuring claims are filed within the statute of limitations.

Essential Elements for Contract Claims:

Clear documentation of terms and performance
Proof of breach and damages
Timely filing of claims
Complete supporting evidence

“Successful contract claims require clear documentation of contract terms and evidence of performance.”

Bond Claims

For public projects or private jobs with payment bonds, pursuing bond claims provides another remedy. Companies must identify proper bond claims procedures and meet strict notice requirements. Timely filing and proper documentation prove essential for successful bond claims. The process requires attention to detail and careful adherence to statutory requirements.

Court Action

When other methods fail, litigation through Florida courts remains an option. The courts provide specific forms and procedures for construction payment disputes. Companies should consider jurisdiction and venue requirements carefully. While litigation often takes longer than alternative methods, it may prove necessary for complex disputes or uncooperative parties.

Preventive Measures

It is best practice to implement comprehensive preventive measures. Companies should review and document all contract terms, scope of work, payment schedules, and change order procedures carefully. Clear documentation helps prevent disputes and strengthens legal positions if conflicts arise.

Essential Documentation Practices:

Comprehensive project records
Regular progress updates
Clear communication logs
Detailed payment applications

The Importance of Legal Counsel

Given the complexity of construction law and strict procedural requirements, experienced legal counsel proves valuable. Attorneys can review contracts before signing and advise on preservation of rights. They guide dispute resolution strategy and represent companies in legal proceedings when necessary.

South Florida Law

Resolving a dispute in the construction industry can be a mammoth task fraught with liability and full of heavily regulated processes. Beware of wading into such a situation without an experienced construction attorney. Property developers and general contractors will have their own legal counsel to represent their best interests so as a construction company it would be wise to also have a legal partner on your side. You can rely on an experienced construction attorney from South Florida Law to draft and deliver notices, advise on processes, mediate and litigate. We are a law firm with the attention to detail of a boutique law firm but with big law firm resources to overcome challenges. Are you a construction company considering legal action against a general contractor or property developer? If so, reach out to us today at (954) 900-8885 or via our contact form.