12 questions

State Contracting Law, Liens & Contracts

A certified general contractor whose license was issued after passing the state examination is based in Tampa and wants to contract for a project in Miami. Which statement is correct?

  • a.The contractor must first obtain a Miami-Dade County competency card and register it with DBPR before bidding.
  • b.A certified contractor holds statewide scope and may contract for the Miami work without obtaining additional local licensing.✓
  • c.The contractor must convert the certificate to a registered license in each county outside the home jurisdiction before contracting.
  • d.A certified contractor may legally work only in the county whose competency exam he passed, unless the CILB grants a written waiver.

A certified contractor passes the state exam and carries statewide scope, so he may contract anywhere in Florida without additional local approval. A registered contractor, by contrast, is limited to the local jurisdiction that issued his competency card.Ch. 489, Part I, F.S. (ss. 489.105, 489.113, 489.117)

State Contracting Law, Liens & Contracts

A drywall subcontractor with no direct contract with the owner first delivers labor and materials to a residential job. To preserve its lien rights, by when must it serve the Notice to Owner?

  • a.Within one year after it first furnishes labor or materials, at any time before the owner makes final payment.
  • b.Within 45 days after it first furnishes labor or materials (and before final payment to the contractor).✓
  • c.Within 90 days after it last furnishes labor or materials to the job.
  • d.Within 45 days after it last furnishes labor or materials, measured from the date of the final delivery ticket.

A lienor not in privity with the owner must serve the Notice to Owner within 45 days of FIRST furnishing, and before final payment. The clock runs from first furnishing, not last, which distinguishes it from the Claim of Lien.s. 713.06(2)(a), F.S.

State Contracting Law, Liens & Contracts

An unpaid material supplier last delivered materials to a project on May 20. To keep its lien enforceable, by when must the Claim of Lien be recorded?

  • a.Within 45 days after last furnishing materials to the project site.
  • b.Within 45 days after first furnishing materials to the job.
  • c.Within one year after last furnishing materials.
  • d.Within 90 days after last furnishing labor, services, or materials.✓

The Claim of Lien must be recorded within 90 days after the lienor LAST furnishes to the project. Note the pairing the exam exploits: Notice to Owner runs 45 days from first furnishing; Claim of Lien runs 90 days from last furnishing.s. 713.08(5), F.S.

State Contracting Law, Liens & Contracts

A lienor has properly recorded a Claim of Lien but the owner still refuses to pay. Absent any owner action to shorten the period, by when must the lienor file suit to foreclose the lien?

  • a.Within 90 days of recording the Claim of Lien, or the lien is extinguished by operation of law.
  • b.Within 45 days of last furnishing.
  • c.Within one year of the date the Claim of Lien was recorded, or the lien expires.✓
  • d.Within five years of recording the Claim of Lien, under the general statute of limitations on written contracts.

A suit to enforce a recorded lien must be filed within one year of recording, or the lien becomes unenforceable. An owner can shorten this to 60 days with a Notice of Contest, or to 20 days with a show-cause complaint.ss. 713.22, 713.21, F.S.

State Contracting Law, Liens & Contracts

Under the Construction Lien Law, which of the following lienors is NOT required to serve a Notice to Owner to preserve lien rights?

  • a.A subcontractor not in privity with the owner whose subcontract exceeds $2,500 in contract value.
  • b.A laborer who provides only personal labor, with no materials and no subcontract of their own.✓
  • c.A material supplier furnishing materials to a subcontractor rather than to the general contractor.
  • d.A sub-subcontractor.

The statute expressly carves out laborers: 'all lienors under this section, except laborers,' must serve the Notice to Owner. Subcontractors, sub-subcontractors, and material suppliers not in privity must still serve it.s. 713.06(2)(a), F.S.

State Contracting Law, Liens & Contracts

Before a contractor in direct contract with the owner may file suit to enforce a construction lien, the law requires a Contractor's Final Payment Affidavit. When must it be furnished to the owner?

  • a.At least 90 days before filing suit to foreclose the lien.
  • b.At the same time that the Claim of Lien is recorded.
  • c.At least 5 days before filing suit to enforce the lien.✓
  • d.Within 45 days after the project is completed and accepted.

The contractor must give the owner the sworn Final Payment Affidavit at least 5 days before filing the enforcement suit. It is a condition precedent, so skipping it defeats the suit regardless of the amount owed.s. 713.06(3)(d), F.S.

State Contracting Law, Liens & Contracts

A residential remodeling contractor operates as a business in the construction industry and hires its first field employee. What is its workers' compensation obligation?

  • a.Coverage is mandatory, because in the construction industry it is required with 1 or more employees.✓
  • b.Coverage is required only once the business has 4 or more full-time employees on the payroll at one time.
  • c.The business is exempt until it has 5 or more employees or an annual payroll over $50,000.
  • d.Coverage is optional until the business has 3 or more employees, and may be replaced by an accident policy.

The construction industry has essentially no small-employer exemption: coverage is mandatory at 1 or more employees. Non-construction employers are not required to carry coverage until they reach 4 or more employees.s. 440.02(17), F.S.

State Contracting Law, Liens & Contracts

A construction corporation wants to elect workers' compensation exemptions for its corporate officers. What does Chapter 440 allow?

  • a.No more than 2 corporate officers may be exempt, and each must own at least 51%.
  • b.An unlimited number of corporate officers may be exempt, provided each owns at least 25% of the stock.
  • c.No more than 3 corporate officers may be exempt, and each must own at least 10% of the corporation.✓
  • d.No more than 3 corporate officers may be exempt, and each must own at least 25% of the corporation.

A construction corporation may exempt no more than 3 corporate officers, each owning at least 10% of the corporation, by filing the election with DBPR. The exemption covers only that officer; the company must still cover its non-officer employees.ss. 440.02(15), 440.05, F.S.

State Contracting Law, Liens & Contracts

An owner wants to transfer a $60,000 claim of lien off her property to a cash deposit or surety bond under s. 713.24. Beyond the $60,000 claim amount and three years' statutory interest, how much must be added to cover attorney's fees and court costs?

  • a.$15,000 — the greater of $5,000 or 25% of the $60,000 demanded.✓
  • b.$10,000 — a flat statutory surcharge for fees and costs on any lien transfer.
  • c.A flat $5,000 for fees and costs, regardless of the claim size.
  • d.$6,000 — a flat 10% of the $60,000 demanded, the statutory minimum.

The transfer amount equals the claim, plus 3 years' interest at the legal rate, plus the GREATER of $5,000 or 25% of the amount demanded. On a $60,000 claim, 25% is $15,000, which exceeds $5,000, so $15,000 is added.s. 713.24, F.S.

State Contracting Law, Liens & Contracts

A subcontractor is unpaid for work on a project covered by a conditional payment bond under s. 713.245, and the owner never released to the contractor the money attributable to that work. What is the sub's position?

  • a.The bond covers claims only to the extent the contractor was paid, and the sub retains its lien rights for the unpaid balance.✓
  • b.The bond is the sub's sole remedy and its lien rights are extinguished the moment the bond is recorded, just as with an unconditional bond.
  • c.The surety must pay the sub in full within 90 days regardless of whether the owner ever released the money to the general contractor.
  • d.The sub has no remedy of any kind once a conditional bond is recorded.

A conditional payment bond limits the surety's exposure to what the contractor was actually paid, so the statute preserves the sub's right to serve a Notice to Owner and record a Claim of Lien for the unpaid portion. An unconditional 713.23 bond, by contrast, pays regardless and replaces the lien.ss. 713.23, 713.245, F.S.

State Contracting Law, Liens & Contracts

A homeowner signs a direct contract for a permitted job to repair and replace an existing HVAC system for $12,000. Must a Notice of Commencement be recorded before the first inspection?

  • a.No — a direct contract to repair or replace an existing HVAC system for less than $15,000 is exempt from that requirement.✓
  • b.Yes — every permitted job requires a recorded Notice of Commencement before the first inspection, regardless of contract price.
  • c.Yes — because the contract price exceeds $5,000.
  • d.No — because any direct contract of less than $25,000 is exempt from the recorded Notice of Commencement requirement of s. 713.135.

Permitted work generally needs a Notice of Commencement before the first inspection when the direct contract exceeds $5,000, but the statute carves out a contract to repair or replace an existing HVAC system for less than $15,000.s. 713.135, F.S.

State Contracting Law, Liens & Contracts

During a declared state of emergency, a person engages in contracting without a license within the disaster area for the first time. How is the offense generally classified?

  • a.A second-degree felony.
  • b.A third-degree felony, even on a first offense.✓
  • c.A noncriminal citation carrying only an administrative fine.
  • d.A first-degree misdemeanor, the same as an ordinary first offense.

Ordinarily a first unlicensed-contracting offense is a first-degree misdemeanor and repeats become a third-degree felony. But unlicensed contracting in a declared disaster area is charged as a third-degree felony even on a first offense, targeting post-storm repair scams.ss. 489.127, 489.13, F.S.

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