Florida General Contractor Florida General Contractor Contracts and Law 1 — Questions and Answers
Question 1: Under Florida Statute Chapter 713, what is the deadline for a contractor to serve a Claim of Lien after the last day of furnishing labor or materials?
- 30 days
- 45 days
- 60 days
- 90 days (Correct answer)
Correct answer: 90 days
Florida Statute §713.08 requires a Claim of Lien to be recorded within 90 days after the last day of furnishing labor, services, or materials.
Question 2: What document must a contractor serve on the property owner before recording a lien in Florida?
- Notice of Commencement
- Notice to Owner (Correct answer)
- Preliminary Notice of Intent
- Certificate of Substantial Completion
Correct answer: Notice to Owner
Under Florida's Construction Lien Law, lienors other than the prime contractor must serve a Notice to Owner to preserve their lien rights.
Question 3: In Florida, what is the purpose of a Notice of Commencement?
- To notify OSHA that work is beginning
- To establish the priority date for construction liens and identify the owner and contractor (Correct answer)
- To notify the city that a permit has been issued
- To inform subcontractors of the project start date
Correct answer: To establish the priority date for construction liens and identify the owner and contractor
A Notice of Commencement establishes the date from which construction lien priorities are measured and identifies the owner, contractor, and lender.
Question 4: Under Florida law, what is the typical statute of limitations for filing a lawsuit based on a written construction contract?
- 2 years
- 4 years
- 5 years (Correct answer)
- 10 years
Correct answer: 5 years
Florida Statute §95.11 provides a 5-year statute of limitations for actions on written contracts, including construction contracts.
Question 5: Which of the following contract types shifts the most financial risk to the contractor in Florida construction?
- Cost-plus with a guaranteed maximum price
- Lump-sum (fixed price) contract (Correct answer)
- Time-and-materials contract
- Unit-price contract
Correct answer: Lump-sum (fixed price) contract
A lump-sum (fixed price) contract places the greatest financial risk on the contractor because the price does not change regardless of actual costs.
Question 6: What does a 'pay-when-paid' clause in a Florida subcontract generally mean?
- The subcontractor must pay the general contractor before starting work
- The general contractor is not required to pay the subcontractor until the owner pays the general contractor (Correct answer)
- Payment is due within 30 days of invoice regardless of owner payment
- The subcontractor waives all lien rights
Correct answer: The general contractor is not required to pay the subcontractor until the owner pays the general contractor
A pay-when-paid clause conditions the general contractor's obligation to pay a subcontractor on first receiving payment from the owner.
Florida General Contractor Florida General Contractor Contracts and Law 1
Under Florida Statute Chapter 713, what is the deadline for a contractor to serve a Claim of Lien after the last day of furnishing labor or materials?