Any violation of subsection (2) or subsection (3) must be prosecuted in accordance with the thresholds established in this section and the following: The required intent to prove a criminal violation may be shown to exist at the time that the contractor appropriated the money to his or her own use and is not required to be proven to exist at the time of the taking of the money from the owner or at the time the owner makes a payment to the contractor. When a subcontractor receives payment from a contractor for labor, services, or materials furnished by subcontractors and suppliers hired by the subcontractor, the subcontractor shall remit payment due to those subcontractors and suppliers within 7 days after the subcontractors receipt of payment. If the 10-day period contains fewer than 6 working days, the Department of Financial Services shall be deemed in compliance with this subsection if the payment is approved within 6 working days without regard to the actual number of calendar days. (Localities); and FDOT 337.141. If a local governmental entity makes any payment of retainage to the contractor which is attributable to the labor, services, or materials supplied by one or more subcontractors or suppliers, the contractor must timely remit payment of such retainage to those subcontractors and suppliers.,,,,,,,,,,,,,,, This may be modifed by contract. The amounts withheld shall bear interest 14 days after payment of such amounts are due under the terms of the contract between the obligor and obligee and the other requirements of subsection (4) have been satisfied. 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(3) applies. It is prima facie evidence that a contractor received money for the repair, restoration, addition, improvement, or construction of residential real property and that the amount received exceeds the value of the work performed by the contractor when: The contractor failed to perform any of the work for which he or she contracted during any 90-day period or any period that is mutually agreed upon and specified in the contract; The failure to perform any such work during the 90-day period or such period that is mutually agreed upon and specified in the contract was not related to the owners termination of the contract or a material breach of the contract by the owner; and. If no such procedure is provided, then the entity must submit the dispute to the dispute resolution procedure established by that entity. This subsection does not prohibit a contractor or subcontractor from disputing, pursuant to the terms of the relevant contract, all or any portion of a payment alleged to be due to another party if the contractor or subcontractor notifies the party whose payment is disputed, in writing, of the amount in dispute and the actions required to cure the dispute. 3. The obligee shall execute and deliver all documents reasonably required to allow the obligor to document the transfer and the obligee shall pay any recording or registration costs incurred by the obligor in connection with the transfer. has helped numerous clients involved in Florida construction disputes and Florida contractor disputes. An obligee may waive the interest due on any late payment on or after the date the payment is due under subsection (4). (1) Each local governmental entity shall establish procedures whereby each payment request or invoice received by the local governmental entity is marked as received on the date on which it is delivered to an agent or employee of the local governmental entity or of a facility or office of the local governmental entity. Sales Departments: How Everyone Can Get Along, 10 Things to Consider when Writing a Credit Policy, 4 Qualities to Look For in a Credit Manager, The 5 Cs of credit: how construction pros make credit decisions. (3) If a payment request or an invoice is rejected under subsection (2) and the contractor submits a payment request or invoice that corrects the deficiency, the corrected payment request or invoice must be paid or rejected on the later of: (a) Ten business days after the date the corrected payment request or invoice is stamped as received as provided in s.218.74(1); or. The deadlines for payment to prime contractors on public projects depends on which public entity contracted the work. Get free payment help from lawyers and experts. California 20-day preliminary notice guide, The Ultimate Guide to Lien Waivers in Construction, How to Handle Requesting and Tracking Lien Waivers, Unconditional Lien Waivers vs Conditional Lien Waivers. (3) This section ands.255.077 do not require the public entity to pay or release any amounts that are the subject of a good faith dispute, the subject of a claim brought pursuant to s.255.05, or otherwise the subject of a claim or demand by the public entity or contractor. Managing Partner (4) County means a political subdivision of the state established pursuant to s. 1, Art. Such procedure must provide that proceedings to resolve the dispute are commenced within 45 days after the date the payment request or proper invoice was received by the local governmental entity and concluded by final decision of the local governmental entity within 60 days after the date the payment request or proper invoice was received by the local governmental entity. No agency or the judicial branch shall adopt any rule or policy that is inconsistent with this section or the Department of Financial Services rules or policies. Also, if the dispute goes to court or arbitration, the prevailing party will be awarded attorney fees. If the request needs to be approved by law, then the first business day after the next regularly scheduled meeting of the local entity held after the corrected pay request is received. Interest at 1% month, attorneys' fees to prevailing party if non-paying party withheld funds wrongfully with no basis in law or fact. (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. 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. The Florida prompt payment laws apply to all written private construction contracts where a construction lien is available. Copyright 2008-2023 Jimerson Birr, P.A. Joint Administrative Procedures Committee (JAPC), Joint Committee on Public Counsel Oversight(JCPO), Joint Legislative Auditing Committee (JLAC), Joint Legislative Budget Commission (JLBC), Joint Select Committee on Collective Bargaining (JSCB), Office of Program Policy Analysis & Government Accountability (OPPAGA), Florida Legislative Committee on Intergovernmental Relations (LCIR), Joint Legislative Committee on Everglades Oversight (JCEO), Joint Legislative Sunset Committee (JCSC), Copyright 1995-2023 The Florida Legislature . With us its fast, easy, affordable, and done right! Fort Lauderdale, FL Construction Law Attorney. The contract between the owner and the contractor may specify a shorter time period for disbursing all or any portion of the final payment and the retainage. The department shall perform monitoring responsibilities, pursuant to this section, using the Department of Financial Services financial systems provided in s.215.94. (c) State whether the tenant is entitled to interest on the deposit. 96-388; s. 1158, ch. Such interest shall be added to the invoice at the time of submission to the Chief Financial Officer for payment whenever possible. (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. Sections 255.0705-255.078 may be cited as the Florida Prompt Payment Act.. 218.70 et seq., and Florida Department of Transportation (FDOT) projects are regulated underFla. Stat. (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 30 days after the date payment for such labor, services, or materials is received, 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). It may be inferred that a contractor does not have just cause if the contractor fails to perform work, or refund the money received in excess of the value of the work performed, within 30 days after receiving a written demand to perform the work, or refund the money received in excess of the value of the work performed, from the person who made the payment.