The construction industry is a tough business, and one that requires an intricate web of connections between builders, suppliers and contractors to see a project through to completion. It is also a risky business, as the financing of a big project usually must pass through many hands, and the management of payments can be further complicated by double payments or unforeseen stoppages.
If payments don’t come in time, it is possible to file a mechanic’s lien. Understanding how this works in Florida and under what circumstances it may necessary to do so is important information for general contractors, subs, suppliers and design professionals when they get involved in a project.
The purpose of a mechanic’s lien
A mechanic’s lien for unpaid work is a claim that guarantees payment for repair, construction, home improvement, or the supply of materials for a project. Once a mechanic’s lien is in place, however, it clouds the real estate title, which will make it more difficult for the property owner to sell it until the lien is lifted.
While it is possible to negotiate a payment schedule or to discuss options with a delinquent property owner, filing a mechanic’s lien is necessary when nonpayment is compromising a project or creating unreasonable risk, and can even force the property into foreclosure. It can also spark a lawsuit from the property owner.
Mechanic’s liens in Florida
Every state has laws governing deadlines, requirements and who may file a mechanic’s lien. In Florida, contractors, subs, suppliers, laborers and design professionals may file a mechanic’s lien for unpaid services. The deadlines for filing are:
- 45 days for preliminary notice
- 90 days from last furnishing labor or materials
- 1 year for enforcement of a mechanic’s lien
Although the time frame for initiating a mechanic’s lien may shorten if the property owner contests the lien, under law it may not be extended, and missing the deadline will extinguish the lien, rendering is unenforceable. It is important to note that an unlicensed contractor may not file a mechanic’s lien in Florida.
Resolving a construction dispute may involve litigation, but in many circumstances it is possible to negotiate settlement options that will protect the rights of the contractor and ensure a prompt resolution to the issue.
