Notice Of Commencement Form - State Of Florida County Of Manatee (Page 2 of 2) in pdf

2007 Construction Lien and Bond Changes

H B 1285 by Altman

Effective Date: July 1,2007

By Deborah Lawson & David Ramba

For the NACM Improved Construction Practices Committee of Florida

HB 1285 began the 2007 Legislative Session as the Florida Bar Construction Law Committee's

legislation to clean up miscellaneous provisions of the lien and bond laws. It was a consensus product

that had been worked on for several years prior to being introduced as a bill. It was amended during

session to include additional provisions advocated by the industry and consumer advocates.

It is important to note that the bill becomes effective on July 1, 2007, if acted upon favorably by the

Governor. The consumer advocate provisions in the bill made modifications to several statutory forms,

marked below with an asterisk and attached. It will be critical to get these changes out to the industry

quickly so that they can remain compliant with the law.

Specific changes include the following:

1. Clarifies that the bond provisions of Chapter 255.05 apply

all public construction projects, even

when the contract is with a private entity.

2. Clarifies that a notice to contractor is a

"written"

notice.

3. Creates a new definition for

"final

furnishing" and clarifies that such date is not measured by the

issuance of a certificate of occupancy or certificate of final completion, and does not

include

the

furnishing of corrective work or materials.

4. Amends the definition of

"furnish

materials" with respect to rental equipment, providing that delivery of

rental equipment to the site of improvement is prima facie evidence of the period of actual use from the

date of delivery through the time equipment is last available for use or two business days after the lessor

receives written notice to pick up the equipment.

5. Requires that notices, demands and requests required under the lien law must be in writing (except

for a demand or designation for the application of money to a materials account under s. 713.14).

*6. Amends the mandatory contract provisions requirements of s. 713.015. The changes exempt direct

contracts of

$2,500

or less from the requirements, reduce the type size requirement from 14 point to 12

point, and allow the contract warning to be on the front page of the contract or,

the contract is oral or

implied, the notice shall be on a separate page which references the contract and is signed by the owner

and dated. The language of the mandatory contract provision has also been modified. The new form is

attached.

7. Provides that the failure to give the mandatory contract warning does not bar the enforcement of a lien

against a person who has not been adversely affected.

8. Clarifies that an owner and a contractor must agree to a contract that requires the contractor to furnish

a payment bond.

9. Clarifies that the payment and recommencement procedures contained in s. 713.07(4) apply when

construction ceases or when a direct contract is terminated.

10.

Provides that a claim of lien may be prepared by the lienor or the lienor's employee or attorney and

shall be signed and sworn to or affirmed by the lienor or the lienor's agent acquainted with the facts

stated therein. Also makes other minor technical changes to s. 713.08.

*11. Amends the notice of commencement form (see attached) to add a warning to the owner and to

specify that the owner must sign the notice of commencement. Replaces the former notary jurat with an

acknowledgment.

12. Provides that a notice of commencement can be amended during the effective period to extend the

effective date, change erroneous information or add information.

13.

Provides that a new notice of commencement or a notice of recommencement must be executed

and recorded in order to change contractors.

14.

Provides that an amended notice of commencement must identify the official record book and page

of the original notice of commencement, and must be served by the owner upon the contractor and each

lienor who has given notice before or within 30 days after the date the amended notice is

recorded.

*15. Reduces the type from 18 to 14 point for the owner warning on

the

building permit card and amends

the warning language. See attached.

*16. Amends the owner warnings on the statutory building permit application form

See attached.

17. Makes technical and clarifying changes regarding the written demand that a lienor who has recorded

a claim of lien can make upon the owner under s. 713.16(5)(a) for information relating to the direct

contract and payments that have been made.

18. Makes technical formatting changes to the service provisions of s. 713.18 and provides for actual

delivery upon a limited liability company to be made by delivery to a member or manager.

19. Clarifies that a lien expires one year after recording, or one year after the recording of an amended

claim of lien that shows a later date of final furnishing.

20. Clarifies provisions for prevailing party attorneys fees in cases of fraud or collusion.

21. Repeals Section 713.36 which contains obsolete effective date provisions for 1963 lien law changes.

Notice Of Commencement Form - State Of Florida County Of Manatee Page 2

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