Hammer Down Your Rights: Protecting Payments in Florida Construction Projects

Protect your payments with Florida lien laws. Find out how general contractors and subcontractors can secure their rights and get paid on time.

Every contractor knows the feeling. You’ve done the work, put in the time, and delivered the results. Then the dreaded delay hits. Worse, the payment is withheld completely. It’s frustrating, to say the least. 

Unlike most industries, construction comes with unique challenges. You can’t take back the materials you’ve carefully installed or undo the labor poured into a project. Your work is out there, integrated into someone else’s property, leaving you in a sink-or-swim scenario when payment disputes arise. 

It’s not an uncommon situation to be in, either. About 70% of general contractors and subcontractors say they regularly face payment delays. 

Here’s the good news. You have tools at your disposal to safeguard your hard-earned money. Florida lien laws exist to protect your rights as contractors, subcontractors, and suppliers, giving you the leverage to secure payments you’re owed. 

At Bachara Construction Law Group, we specialize in empowering builders like you with the knowledge to protect your payment rights and stay ahead of disputes. 

Here’s what you need to know about Florida lien laws and how to make them work for you.

Understanding the Basics of Florida Lien Laws 

A lien is more than just a piece of paper on file. It’s your legal claim against a property for unpaid work or materials. Think of it as a safety net that ensures you can still collect payments, even when disputes arise.  

What Is a Lien and How Does It Work? 

When you file a “claim of lien,” you’re effectively placing a hold on the property in question. This action prevents the owner from selling or refinancing the property until the lien is resolved. Think of it as the construction industry’s way of ensuring accountability. 

For contractors, subcontractors, and suppliers, lien rights are critical. Just as a car loan lender can repossess a vehicle for missed payments, you have a method to ensure you don’t walk away empty-handed.

Direct Contracts vs. Non-Direct Contracts 

Though relatively basic at face value, liens can become more complex as you consider the differences between direct and non-direct contracts. Being clear about which category you fall into is step one in successfully navigating lien laws.

If you’re in a direct contractual relationship with the owner, you have a more straightforward path to lien rights. 

However, if you’re a subcontractor or supplier, you must take additional steps to secure those rights, such as serving a Notice to Owner (more on this below). Florida law requires you to “perfect” your lien rights by following specific timelines and procedures, depending on your relationship with the owner.

Key Actions to Protect Your Payment Rights 

Now that you know what lien laws entail, let’s chat about how you can use those laws to your advantage – to protect your payment rights as a contractor or subcontractor.

1. Include Proper Contract Language 

If you’re working directly with a property owner, make sure your contract includes statutory lien disclosure language. This language notifies the property owner that you have a right to file a lien if payments aren’t made. Florida law mandates that this disclosure appears prominently on either the first page of the contract or within a signature-designated page.

For subcontractors, you may not be involved in drafting the primary contract, but understanding its terms is just as important.

2. Serve a Notice to Owner on Time 

For subcontractors and suppliers, this is the first and most crucial step to securing your lien rights. You must serve a Notice to Owner (NTO) within 45 days of starting work or starting fabrication of specially fabricated materials. The NTO informs the property owner of your involvement in the project and alerts them to your right to payment.

Details matter here, so make sure you send the NTO via certified mail to maintain proof of service. Double-check the accuracy of all names, addresses, and project identification.

Don’t wait until the clock’s ticking down, as this isn’t merely another checklist item to mark on your list. Failing to serve the NTO within this timeframe could mean losing your lien rights altogether, and that’s not a situation you want to be in. 

3. Utilize the Notice of Commencement 

Before work begins, many property owners are required to post a Notice of Commencement (NOC). This document contains critical details about the project, such as the owners’ names, property descriptions, and the names of contractors involved.

The NOC can act as your road map for filing and enforcing lien rights:

• Use it to verify contact information and addresses for serving notices.
• Confirm that your NTO and future lien filings align with the information listed in the NOC.
• Track when the NOC was filed, as it marks the beginning of your project timeline.

Ignoring this document could leave important information on the table, so it’s well worth your time to familiarize yourself with its details.

Common Deadlines and Compliance Steps 

Florida lien laws leave zero room for error. Any slight oversight can cost you your lien rights, leaving you without leverage to recover payments. Failing to meet deadlines can strip you of your ability to collect what’s owed, and Florida’s courts stick tightly to the rules.

Here’s a timeline of key deadlines to pay attention to: 

• Contract Signing: Before a project begins, make sure you have a written agreement with clearly outlined terms. Contracts are enforceable and, more importantly, serve as the foundation for lien filings. 
• Notice to Owner (NTO): If you’re not in direct contract with the property owner, you must serve a Notice to Owner within 45 days of starting work or delivering materials. Missing this deadline forfeits your lien rights. 
• Claim of Lien: If payment hasn’t been made, you must file a Claim of Lien within 90 days of your final furnishing of labor or materials. 
• Lien Foreclosure Lawsuit: To enforce your lien, you’ll need to file a lawsuit within one year of recording the lien. 

How to Resolve a Lien and Get Paid 

Filing a lien is only half the battle. What happens next determines whether you walk away with your well-deserved payment or an unresolved dispute.  

Options After Filing a Lien 

Generally, there are three ways you can proceed after filing a lien:

• Negotiations: Often the quickest route, negotiation involves working with the property owner to agree on payment terms. Having a construction contract lawyer by your side will help you make sure your rights are upheld during these discussions. 
• Lien foreclosure lawsuit: If negotiation fails, you may initiate a lawsuit to enforce your lien. This legal action compels the property owner to settle the payment or face potential asset loss. Hiring an experienced construction trial lawyer can help you navigate this complex process. 
• Arbitration or mediation: For a quicker (and potentially less expensive) resolution, consider alternative dispute resolution (ADR) methods like arbitration or mediation. A construction mediation lawyer, again, can help streamline the process. 
• Caution: if proceeding with arbitration, the Florida Lien Law requires you to file a lien foreclosure lawsuit and simultaneously move to stay it pending the outcome of arbitration.  Be sure to seek counsel on this process.

How Property Owners May Respond 

When faced with a lien, property owners typically respond in one of three ways.

The most common response is also the best case scenario for you: the owner simply fulfills their payment obligations. For the most part, property owners recognize the legitimacy of a lien and will settle any outstanding payments to remove it.

However, they may also choose to contest the lien. If the owner disagrees with the lien’s validity, they may contest it through legal channels of their own.

Property owners may also claim certain defenses to avoid paying. The most common include:

• Poor workmanship: The owner may assert that the quality of work doesn’t meet agreed standards, making them unwilling to make payment. 
• Material breach of contract: If you breached terms in the contract, even unintentionally, it could weaken your case. 
• Missed deadlines: Failing to meet Florida’s strict deadlines can invalidate your lien altogether. 

This is where having a construction litigation lawyer with trial experience can make all the difference. At Bachara Construction Law Group, we know how to counter these strategies effectively and make sure you’re paid fairly and promptly.  

Why High-Quality Work Matters 

The strongest defense in any lien dispute is the quality of the work. Properly executed work, completed according to the agreed contract, helps you establish credibility and strengthens your entitlement to payment. 

Florida construction lawyers often stress this point because a well-documented, high-quality performance reduces opportunities for property owners to contest your claims. To that end, be sure to keep accurate records of your work, including progress photos, daily logs, and signed approvals. 

Why You Should Hire an Experienced Florida Construction Lawyer

Protecting your payment rights doesn’t need to be an uphill battle. Whether you’re a contractor, subcontractor, or supplier, you deserve to get paid for your work. 

At Bachara Construction Law Group, our construction contract legal services are designed to uphold your rights and streamline your path to resolution. 

We’re experts in construction lien law, contract disputes, arbitration, and litigation. Recognized among the best and most experienced construction lawyers in Jacksonville, Tampa, and St. Pete, we’re here to help you secure what you’ve rightfully earned. 

Don’t roll the dice on your payment rights. Contact us today for a consultation and see why we’re Florida’s trusted advisors for construction law.