Understanding the Notice Requirements Under Florida’s Lien Law

Understanding the Notice Requirements Under Florida’s Lien Law

An Introduction to Lien Law and Filing the Notice Commencement If you work in the construction industry or own a property that requires work done to it, it is important to have a thorough understanding of Florida’s lien law and the Notice to Owner requirements. What is the Purpose of Florida’s Lien Law? The lien law can be utilized by a supplier, contractor or subcontractor to ensure that they are fully compensated for work that they complete or for their materials. It also protects the owner of a construction project from having to pay twice for work done or materials associated with the project. What are Lien Rights? These are the rights established by law in Florida that allow a lien to be filed in the event of non-payment. It’s important to understand the implications of this to make sure builders are compensated for their work, and owners do not become a subject of a lien or end up paying twice for the work. Lien rights are particularly important because of the way that they govern the builder’s relationship with the owner of the property as there can be a significant impact on lien rights if there is a crossover between a subcontractor and a contractor’s scope of work. Common Contract Situations and Implications for Serving a Notice to the Owner There are two main contract situations that commonly arise: when the contract is with the owner of the property, and when the contract is with someone else other than the owner. Contract with the Owner If the contract is for an amount greater than $2500 between the owner...
Financial Responsibilities for a Contractor

Financial Responsibilities for a Contractor

A general contractor license holder is a self-employed individual who takes up contractual assignments and projects. One of the great things about having a contractor’s license is that the holder doesn’t have to deal with the typical employer and employee relationship. This gives them the freedom to work in a more positive way. But this does not mean that their work is taken casually. A contractor should take on the employer responsibilities and tasks and make sure that they are meeting their obligations, particularly the financial ones—which are usually tied to legalities. File Taxes General contractors are responsible for their own accounting or bookkeeping. The general contractor is responsible for paying and filing the taxes on the income they earned from their clients. With this, a client should give the contractor’s license holder a W-9 tax form prior to issuing payments. By the coming January of next year, the client gives the general contractor the Form 1099-MISC, which includes the payment amounts made previously. The general contractor must get all of the Form 1099s from all of the income that they gained throughout the year. Afterwards, they should file this with the Internal Revenue Service, as well as the state revenue office (if there is income tax collected on the state level). For example, you have to file in the Florida revenue office if you have a Florida contractor’s license. The general contractor must also claim entitled deductions for spending on mileage, office supplies, advertising, equipment, and the like.  Get Benefits and Insurance  Being a general contractor, clients do not pay the general contractor salaries or insurance. Of course,...
What are the Insurance Requirements for Florida Contractors?

What are the Insurance Requirements for Florida Contractors?

Before we move on to discussing insurance requirements of contractors license in the state of Florida, let’s first start with understanding who a Florida general contractor insurance if for. It is basically for contractors managing new buildings, renovation services, and all other tasks related to the entire project. Normally Florida contractors have area of specialty in family homes, restaurants, commercial buildings, stadiums and factories. Mostly Florida contractors first look into specification like design, work and material and then schedule phases of the entire project as well as insurance requirements as a whole and for subcontractors. Before initially issuing or renewing a contractor’s license in the state of Florida, the applicant should show evidence that they have in place, the mandated insurance policies. To be able to accomplish this, the applicant should give a signed affidavit showing that he or she has gotten and will keep property damage and public liability insurance throughout the period of the contractor’s license in Florida. This is important for the public’s safety, welfare, and protection. In order to check on the signed affidavit’s accuracy, the Construction Industry Licensing Board will perform random sample audits of FL contractor’s license per zip code. After a written request from the Board, every Florida contractor’s license holder, within 30 days of the mailing request, must give proof of coverage using a Certificate of Insurance (original). The Certificate of Insurance is really crucial because it has to be updated on the job site, prior to working on any contract. If you do not have it, you would probably be breaching the contract and can lead to legal complications under...