Do Your Contracts Include the Florida Homeowners’ Construction Recovery Fund Provision?
When it comes to the topic of construction contracts, our Ft. Myers contractor lawyers have seen it all. At Cotney Attorneys & Consultants, we recognize how important contracts are to the construction industry. After all, no contracts mean no projects, so it’s vital that you have a strong grasp on the various provisions that must be included in your construction contracts.
You’re probably familiar with certain provisions such as those covering construction liens and defects, but are you aware of all of the provisions that need to be included in your construction contracts? In this article, our Ft. Myers contractor lawyers will discuss some of these provisions. If you need assistance with contract negotiation, drafting, or review, consult a Ft. Myers contractor attorney.
Florida Homeowners’ Construction Recovery Fund
Section 489.1425, Florida Statutes, requires all contractors entering a contract with a residential property owner to inform them about the Homeowners’ Construction Recovery Fund. The purpose of the Homeowners’ Construction Recovery Fund is to compensate homeowners who are unable to collect judgments against their contractor. As long as the projected value of labor and materials exceeds $2,500, the contractor must include this statement, written exactly as depicted below, which details the property owner’s rights under the recovery fund:
PAYMENT, UP TO A LIMITED AMOUNT, MAY BE AVAILABLE FROM THE FLORIDA HOMEOWNERS’ CONSTRUCTION RECOVERY FUND IF YOU LOSE MONEY ON A PROJECT PERFORMED UNDER CONTRACT, WHERE THE LOSS RESULTS FROM SPECIFIED VIOLATIONS OF FLORIDA LAW BY A LICENSED CONTRACTOR. FOR INFORMATION ABOUT THE RECOVERY FUND AND FILING A CLAIM, CONTACT THE FLORIDA CONSTRUCTION INDUSTRY LICENSING BOARD AT THE FOLLOWING TELEPHONE NUMBER AND ADDRESS:
Following this provision, the contractor must include the address and telephone number of the board. If a contractor neglects to draft this notice into a qualifying contract, they will be fined accordingly:
- First violation: up to a $500 fine
- Second violation and so on: $1,000 per violation
Consult a Construction Lawyer for Assistance with Contracts
Contracts are the lifeblood of the construction industry, so it’s vital that your contracts are drafted skillfully and include all necessary provisions to ensure your compliance with Florida’s various laws and policies regarding construction contracts. If you are looking for a skilled legal partner to help you with contract negotiation, review, and drafting, consult a Ft. Myers contractor attorney.
If you would like to speak with a Ft. Myers contractor attorney, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.