Florida’s Construction Lien Law (Chapter 713, Part One, Florida Statutes) requires the recording of a Notice of Commencement with the Clerk of the Courts for real property improvements greater than $2,500. This notice must be signed by you, the property owner.

Under Florida law, those who work on your property or provide materials and are not paid, have a right to enforce their claim for payment against your property. This claim is known as a construction lien.

For your protection under the Construction Lien Law and to avoid the possibility of paying twice for improvements to real property, you must record a Notice of Commencement in the Clerk of the Court’s Office. The Notice of Commencement must be signed by you, the owner contracting the improvement, and not your agent.

The Notice of Commencement must be completed and recorded within 90 days before starting the work. A copy is also to be posted on the job site.

Chapter 10 of the Code of Miami-Dade County and Chapter 489 of the Florida Statutes require that contractors be licensed. The Miami-Dade County Office of Building Code Compliance regulates licensed contractors and provides enforcement against unlicensed contractors. By calling the Contractor Licensing and Enforcement Section at (305) 375-2901, you can be informed if there are any complaints against the contractor, whether or not the contractor is licensed and whether the contractor has current liability and worker’s compensation insurance. Licensed contractors must have general liability and worker’s compensation insurance in effect at all times.

It is also important to know that the 1995 Florida Legislature created the “Homebuyer’s Protection Act”. This Act amends several sections of Florida Statutes and was effective October 1, 1995. Most of the provisions are directed at commercial construction although some are directed at general construction. The following are some of the key provisions of the act.

• Section 489.1265(1) & (2) Florida Statutes provide that a contractor may not enter into an agreement with, or knowingly allow his certification to be used by, a person who is not certified or registered.
• Section 489.1265(3) provides that a contractor, except when working without compensation, may not obtain permits for construction work without first entering into a contract to perform improvements. A violation of this provision is a misdemeanor of the first degree and a subsequent violation is a felony.
• Section 489.126 requires that a contractor who receives money totaling more than 10% of the contract price for work on residential property must apply for the necessary permits within 30 days after payment is made and must start work within 90 days after all permits are issued, unless the person who made payment agreed to a longer period in writing.
• Section 489.1425 requires the contractor to notify residential property owners of a recovery fund no later than the date the owner makes the initial payment and at the time final payment is made. The contractor must inform the owner clearly and conspicuously in writing of how and where to file a claim and an explanation of consumers rights under the Construction Industry Recovery Fund.
• Section 713.165 provides that the owner may request from the contractor a list of all subcontractors and suppliers. This request must be in writing and delivered by Registered or Certified mail. Within 10 days after receipt of the written request, the contractor must furnish the list. Failure to do so results in the forfeiture of the contractor’s right to assert a lien against the owner’s property.

• A large down payment is requested before work begins.
• Many requests for money during early phases of construction.
• A verbal contract only, as person is not willing to put all terms in writing.
• You are asked to make your check payable to an individual’s name or asked to make payment in cash or to make the check payable to “cash.”
• The contractor suggests doing the work without permits or asks you, as the homeowner, to obtain the permit.

Additionally, you should request final release of liens from any individuals or firms who have provided labor, material or supplies, especially those who have sent you a “Notice to Owner” letter.

You can contact the Office of Building Code Compliance, Contractor Licensing and Enforce ment Section at (305) 375-2901 and file a complaint. The Contractor Licensing and Enforcement Section will investigate and work toward a resolution of the problem. If the permit is active, you should contact an Inspector by calling the Building Department’s Office, (786) 315-2000 between the hours of 7:30 a.m. - 4:00 p.m. However, it may be necessary for you to hire a new contractor to complete the work or you may complete the work as an owner-builder, if you qualify by passing a verbal test.

If you have obtained an owner-builder permit to perform electrical, mechanical, plumbing or gas work, you must perform all work yourself and you cannot subcontract or hire day labor employees. If you are a holder of a building permit, you can subcontract to licensed con tractors, use day labor or persons to be paid on an hourly per diem basis for the building trade. However, you will be responsible for all work done by your employees. Anyone contracting (including labor) with you, verbally or in writing, on a fixed fee basis for any work, who is not properly licensed, will be subject to a fine of $500 and/or imprisonment for six months. Additionally, the hiring of an unlicensed contractor could subject you to a $5,000 fine.

You should be advised that if your day labor employees cause any damage to persons or property, or if any of your day labor employees are injured on the job, you are liable. Your regular home insurance policy ordinarily DOES NOT cover this type of liability. Please check with your insurance agent.

You are required to erect an approved safety barrier around the property or pool, under a building permit obtained from the Building Department, prior to final inspection of the pool. The safety barrier must also be inspected and approved by this department. Failure to comply will result in the issuance of a $500 ticket to you, the property owner.

Permits will expire and become null and void if work authorized by such permits has not commenced within 180 days from permit issuance or has been suspended or abandoned at any time for a period of 180 days. Work shall be considered to be in active progress when the permit has received an approved inspection within 180 days.