Senate Bill sb1724e1

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    CS for CS for SB 1724                    First Engrossed (ntc)



  1                      A bill to be entitled

  2         An act relating to prompt payment for

  3         construction services; amending s. 218.70,

  4         F.S.; providing a short title; amending s.

  5         218.72, F.S.; redefining terms used in part VII

  6         of ch. 218, F.S.; amending s. 218.735, F.S.;

  7         revising provisions relating to timely payment

  8         for purchases of construction services;

  9         revising deadlines for payment; providing

10         procedures for project closeout and payment of

11         retainage; providing requirements for local

12         government construction retainage; providing

13         that ss. 218.72-218.76, F.S., apply to the

14         payment of any payment request for retainage;

15         creating s. 255.0705, F.S.; providing a short

16         title; amending s. 255.071, F.S.; revising

17         deadlines for the payment of subcontractors,

18         sub-subcontractors, materialmen, and suppliers

19         on construction contracts for public projects;

20         creating ss. 255.072, 255.073, 255.074,

21         255.075, 255.076, 255.077, 255.078, F.S.;

22         providing definitions; providing for timely

23         payment for purchases of construction services

24         by a public entity; providing procedures for

25         calculating payment due dates; providing

26         procedures for handling improper payment

27         requests; providing for the resolution of

28         disputes; providing for project closeout and

29         payment of retainage; providing for

30         public-construction retainage; providing that

31         ss. 255.072-255.076, F.S., apply to the payment


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1         of any payment request for retainage; amending

 2         s. 255.05, F.S.; providing requirements for

 3         certain notices of nonpayment served by a

 4         claimant who is not in privity with the

 5         contractor; providing limitations on a

 6         claimant's institution of certain actions

 7         against a contractor or surety; providing for

 8         certain notices to the claimant; providing an

 9         effective date.

10  

11  Be It Enacted by the Legislature of the State of Florida:

12  

13         Section 1.  Section 218.70, Florida Statutes, is

14  amended to read:

15         218.70  Popular name Short title.--This part may be

16  cited as the "Local Government Florida Prompt Payment Act."

17         Section 2.  Subsections (2), (6), and (7) of section

18  218.72, Florida Statutes, are amended to read:

19         218.72  Definitions.--As used in this part:

20         (2)  "Local governmental entity" means a county or

21  municipal government, school board, school district,

22  authority, special taxing district, other political

23  subdivision, community college, or any office, board, bureau,

24  commission, department, branch, division, or institution

25  thereof or any project supported by county or municipal funds.

26         (6)  "Vendor" means any person who sells goods or

27  services, sells or leases personal property, or leases real

28  property directly to a local government entity. The term

29  includes any person who provides waste-hauling services to

30  residents or businesses located within the boundaries of a

31  local government pursuant to a contract or local ordinance.


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1         (7)  "Construction services" means all labor, services,

 2  and materials provided in connection with the construction,

 3  alteration, repair, demolition, reconstruction, or any other

 4  improvements to real property that require a license under

 5  parts I and II of chapter 489.

 6         Section 3.  Subsection (6) of section 218.735, Florida

 7  Statutes, is amended, present subsection (7) of that section

 8  is redesignated as subsection (9), and new subsections (7) and

 9  (8) are added to that section, to read:

10         218.735  Timely payment for purchases of construction

11  services.--

12         (6)  When a contractor receives payment from a local

13  governmental entity for labor, services, or materials

14  furnished by subcontractors and suppliers hired by the

15  contractor, the contractor shall remit payment due to those

16  subcontractors and suppliers within 10 15 days after the

17  contractor's receipt of payment. When a subcontractor receives

18  payment from a contractor for labor, services, or materials

19  furnished by subcontractors and suppliers hired by the

20  subcontractor, the subcontractor shall remit payment due to

21  those subcontractors and suppliers within 10 15 days after the

22  subcontractor's receipt of payment. Nothing herein shall

23  prohibit a contractor or subcontractor from disputing,

24  pursuant to the terms of the relevant contract, all or any

25  portion of a payment alleged to be due to another party. In

26  the event of such a dispute, the contractor or subcontractor

27  may withhold the disputed portion of any such payment if the

28  contractor or subcontractor notifies the party whose payment

29  is disputed, in writing, of the amount in dispute and the

30  actions required to cure the dispute. The contractor or

31  


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1  subcontractor must pay all undisputed amounts due within the

 2  time limits imposed by this section.

 3         (7)(a)  Each contract for construction services between

 4  a local government entity and vendor must provide for the

 5  development of a list of items required to render complete,

 6  satisfactory, and acceptable the construction services

 7  purchased by the local government. The contract must specify

 8  the process for the development of the list, including

 9  responsibilities of the local government and vendor in

10  developing and reviewing the list and a reasonable time for

11  developing such list as follows:

12         1.  For construction projects with an estimated cost

13  less than $10 million, within 30 days after reaching

14  substantial completion of the construction services purchased

15  as defined in the contract, or, if not defined in the

16  contract, upon reaching beneficial occupancy or use; or

17         2.  For construction projects with an estimated cost of

18  $10 million or more, within 30 days, unless otherwise extended

19  by contract not to exceed 90 days, after reaching substantial

20  completion of the construction services purchased as defined

21  in the contract, or, if not defined in the contract, upon

22  reaching beneficial occupancy or use.

23         (b)  If the contract between the local government

24  entity and vendor relates to the purchase of construction

25  services on more than one building or structure, or involves a

26  multiphased project, the contract shall provide for the

27  development of a list of items required to render complete,

28  satisfactory, and acceptable the construction services

29  purchased for each building, structure, or phase of the

30  project in accordance with the timeframes specified in

31  subparagraph (a)1. or subparagraph (a)2.


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1         (c)  The failure to include any corrective work or

 2  pending items not yet completed on the list developed pursuant

 3  to this subsection shall not alter the responsibility of the

 4  vendor to complete all the purchased construction services as

 5  defined in the contract.

 6         (d)  Upon completion of all items on the list, or such

 7  other time defined in the contract, the vendor may submit a

 8  payment request for the appropriate amount of retainage. The

 9  local government may withhold an amount not to exceed 150

10  percent of the total costs to complete any incomplete items on

11  the list.

12         (e)  All items that require correction under the

13  contract and that are identified after the preparation and

14  delivery of the list shall remain the obligation of the vendor

15  as defined by the contract.

16         (f)  Warranty items may not affect the final payment of

17  retainage as provided in this section or as may be provided in

18  the contract between the vendor and its subcontractors and

19  suppliers.

20         (g)  If a local government entity fails to comply with

21  its responsibilities to develop the list required under

22  paragraph (a) or paragraph (b), as defined in the contract,

23  and the timeframes provided in subparagraph (a)1. or

24  subparagraph (a)2., the vendor may submit a payment request

25  for the appropriate amount of retainage. The local government

26  entity shall not be required to pay or process any request for

27  payment of retainage if the vendor has, in whole or in part,

28  failed to cooperate with the local government in the

29  development of the list; failed to perform its contractual

30  responsibilities, if any, with regard to the development of

31  the list; or if paragraph (8)(d) applies.


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1         (8)(a)  In any public construction project, a local

 2  government entity may withhold an amount not exceeding 10

 3  percent of each progress payment made to the vendor until the

 4  local government project has reached 50-percent completion.

 5  After reaching 50-percent completion, the local government

 6  must reduce to 5 percent the amount of retainage withheld from

 7  each subsequent progress payment made to the vendor. However,

 8  notwithstanding the provisions of this subsection, a

 9  municipality with a population of 25,000 or fewer, or a county

10  with a population of 100,000 or fewer, may withhold retainage

11  in an amount not exceeding 10 percent of each progress payment

12  made to the vendor until final completion and acceptance of

13  the project by the local government. For purposes of this

14  subsection, the term "50-percent completion" means as defined

15  in the contract between the local government entity and the

16  vendor, or, if not defined in the contract, the point at which

17  the local government has expended 50 percent of the total

18  project costs identified in the contract, plus all change

19  orders and other additions issued subsequent to the approval

20  of the contract by the governing body of the local government,

21  and the level of actual project construction is equivalent to

22  such expenditure of funds.

23         (b)  After 50-percent completion, the vendor may

24  present to the local government entity a payment request for

25  up to one-half of the retainage amount held by the local

26  government. The local government entity shall promptly make

27  payment to the vendor, unless the local government has

28  grounds, pursuant to the contract or as provided in paragraph

29  (d), for withholding the payment of retainage. If the local

30  government makes payment of retainage to the vendor under this

31  


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1  paragraph, the vendor shall timely remit payment of such

 2  retainage to the appropriate subcontractors and suppliers.

 3         (c)  After 50-percent completion, the vendor may elect

 4  to withhold retainage from payments to its subcontractors at a

 5  rate higher than 5 percent. The specific amount to be withheld

 6  must be determined on a case-by-case basis and must be based

 7  on the vendor's assessment of the subcontractor's past

 8  performance, the likelihood that such performance will

 9  continue, and the vendor's ability to rely on other

10  safeguards. The vendor shall notify the subcontractor, in

11  writing, of its determination to withhold more than 5 percent

12  of the progress payment and the reasons for making that

13  determination, and the vendor may not request the release of

14  such retained funds from the local government.

15         (d)  Nothing in this section requires the local

16  government to pay or release any amounts that are the subject

17  of a good-faith dispute, the subject of an action brought

18  pursuant to s. 255.05, or otherwise the subject of a claim or

19  demand by the local government or vendor.

20         (e)  The timeframes set forth in this section for

21  payment of payment requests apply to any payment request for

22  retainage made pursuant to this subsection.

23         Section 4.  Section 255.0705, Florida Statutes, is

24  created to read:

25         255.0705  Short title.--Sections 255.0705-255.078 may

26  be cited as the "Florida Prompt Payment Act."

27         Section 5.  Subsections (2) and (3) of section 255.071,

28  Florida Statutes, are amended to read:

29         255.071  Payment of subcontractors, sub-subcontractors,

30  materialmen, and suppliers on construction contracts for

31  public projects.--


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1         (2)  The failure to pay any undisputed obligations for

 2  such labor, services, or materials within 30 days after the

 3  date the labor, services, or materials were furnished and

 4  payment for such labor, services, or materials became due, or

 5  within 10 30 days after the date payment for such labor,

 6  services, or materials is received, whichever last occurs,

 7  shall entitle any person providing such labor, services, or

 8  materials to the procedures specified in subsection (3) and

 9  the remedies provided in subsection (4).

10         (3)  Any person providing labor, services, or materials

11  for the construction of a public building, for the prosecution

12  and completion of a public work, or for repairs upon a public

13  building or public work improvements to real property may file

14  a verified complaint alleging:

15         (a)  The existence of a contract for providing such

16  labor, services, or materials to improve real property.

17         (b)  A description of the labor, services, or materials

18  provided and alleging that the labor, services, or materials

19  were provided in accordance with the contract.

20         (c)  The amount of the contract price.

21         (d)  The amount, if any, paid pursuant to the contract.

22         (e)  The amount that remains unpaid pursuant to the

23  contract and the amount thereof that is undisputed.

24         (f)  That the undisputed amount has remained due and

25  payable pursuant to the contract for more than 30 days after

26  the date the labor or services were accepted or the materials

27  were received.

28         (g)  That the person against whom the complaint was

29  filed has received payment on account of the labor, services,

30  or materials described in the complaint more than 10 30 days

31  prior to the date the complaint was filed.


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1         Section 6.  Section 255.072, Florida Statutes, is

 2  created to read:

 3         255.072  Definitions.--As used in ss. 255.073-255.078,

 4  the term:

 5         (1)  "Agent" means project architect, project engineer,

 6  or any other agency or person acting on behalf of a public

 7  entity.

 8         (2)  "Construction services" means all labor, services,

 9  and materials provided in connection with the construction,

10  alteration, repair, demolition, reconstruction, or any other

11  improvements to real property. The term "construction

12  services" does not include contracts or work performed for the

13  Department of Transportation.

14         (3)  "Payment request" means an invoice or request for

15  payment for construction services which conforms with all

16  statutory requirements and with all requirements specified by

17  the public entity to which the payment request is submitted.

18         (4)  "Public entity" means the state, a state

19  university, or any office, board, bureau, commission,

20  department, branch, division, or institution thereof, or any

21  project supported by state funds, but does not include a local

22  government entity as defined in s. 218.72.

23         (5)  "Purchase" means the purchase of construction

24  services.

25         (6)  "Vendor" means any person providing construction

26  services directly to a public entity.

27         Section 7.  Section 255.073, Florida Statutes, is

28  created to read:

29         255.073  Timely payment for purchases of construction

30  services.--

31  


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1         (1)  Except as otherwise provided in ss.

 2  255.072-255.078, s. 215.422 governs the timely payment for

 3  construction services by a public entity under this act.

 4         (2)  If a public entity disputes a portion of a payment

 5  request, the undisputed portion must be timely paid, in

 6  accordance with subsection (1).

 7         (3)  When a vendor receives payment from a public

 8  entity for labor, services, or materials furnished by

 9  subcontractors and suppliers hired by the vendor, the vendor

10  shall remit payment due to those subcontractors and suppliers

11  within 10 days after the vendor's receipt of payment. When a

12  subcontractor receives payment from a vendor for labor,

13  services, or materials furnished by subcontractors and

14  suppliers hired by the subcontractor, the subcontractor shall

15  remit payment due to those subcontractors and suppliers within

16  10 days after the subcontractor's receipt of payment. This

17  subsection does not prohibit a vendor or subcontractor from

18  disputing, pursuant to the terms of the relevant contract, all

19  or any portion of a payment alleged to be due to another

20  party. If such a dispute occurs, the vendor or subcontractor

21  may withhold the disputed portion of any such payment if the

22  vendor or subcontractor notifies the party whose payment is

23  disputed, in writing, of the amount in dispute and the actions

24  required to cure the dispute. The vendor or subcontractor must

25  pay all undisputed amounts due within the time limits imposed

26  by this section.

27         (4)  All payments due under this section and not made

28  within the time periods specified by this section shall bear

29  interest at the rate of 1 percent per month, or the rate

30  specified by contract, whichever is greater.

31  


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1         Section 8.  Section 255.074, Florida Statutes, is

 2  created to read:

 3         255.074  Procedures for calculation of payment due

 4  dates.--

 5         (1)  Each public entity shall establish procedures

 6  whereby each payment request received by the public entity is

 7  marked as received on the date on which it is delivered to an

 8  agent or employee of the public entity or of a facility or

 9  office of the public entity.

10         (2)  If the terms under which a purchase is made allow

11  for partial deliveries and a payment request is submitted for

12  a partial delivery, the time for payment for the partial

13  delivery must be calculated from the time of the partial

14  delivery and the submission of the payment request in the same

15  manner as provided in s. 255.073.

16         (3)  The public entity must submit a payment request to

17  the Chief Financial Officer for payment no more than 25 days

18  after receipt of the payment request.

19         Section 9.  Section 255.075, Florida Statutes, is

20  created to read:

21         255.075  Mandatory interest.--A contract between a

22  public entity and a vendor or a provider of construction

23  services may not prohibit the collection of late payment

24  interest charges allowable under ss. 255.072-255.078.

25         Section 10.  Section 255.076, Florida Statutes, is

26  created to read:

27         255.076  Improper payment request; resolution of

28  disputes.--

29         (1)  If a vendor submits an improper payment request,

30  the public entity shall, within 10 days after receiving the

31  improper payment request, notify the vendor that the payment


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1  request is improper and indicate what corrective action on the

 2  part of the vendor is needed to make the payment request

 3  proper.

 4         (2)  If a dispute occurs between a vendor and a public

 5  entity concerning payment of a payment request, the dispute

 6  must be resolved as provided in this section. Each public

 7  entity shall establish a dispute resolution procedure to be

 8  followed by the public entity if such a dispute occurs. The

 9  procedure must provide that proceedings to resolve the dispute

10  must commence not later than 45 days after the date on which

11  the public entity received the payment request and must

12  conclude by final decision of the public entity not later than

13  60 days after the date on which the public entity received the

14  payment request. Such procedures are not subject to chapter

15  120 and do not constitute an administrative proceeding that

16  prohibits a court from deciding de novo any action arising out

17  of the dispute. If the dispute is resolved in favor of the

18  public entity, interest charges begin to accrue 15 days after

19  the public entity's final decision. If the dispute is resolved

20  in favor of the vendor, interest begins to accrue as of the

21  original date the payment became due.

22         (3)  In an action to recover amounts due under ss.

23  255.072-255.078, the court shall award court costs and

24  reasonable attorney's fees, including fees incurred through

25  any appeal, to the prevailing party, if the court finds that

26  the nonprevailing party withheld any portion of the payment

27  that is the subject of the action without any reasonable basis

28  in law or fact to dispute the prevailing party's claim to

29  those amounts.

30         Section 11.  Section 255.077, Florida Statutes, is

31  created to read:


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1         255.077  Project closeout and payment of retainage.--

 2         (1)  A public entity must present to the vendor a final

 3  punch list of all items required to render complete,

 4  satisfactory, and acceptable the construction services

 5  purchased, within 30 days after the earliest of the following:

 6         (a)  Issuance of a temporary or final certificate of

 7  occupancy, if applicable;

 8         (b)  Substantial completion of the construction

 9  services purchased, as defined in the contract; or

10         (c)  Beneficial occupancy or use of the structure,

11  building, facility, or improvement that is the subject of the

12  construction services purchased, as defined in the contract.

13         (2)  If the purchase relates to construction services

14  on more than one building or structure, the public entity

15  shall prepare a final punch list for each building or

16  structure. The public entity must present to the vendor a

17  final punch list with regard to each building or structure

18  within 30 days after the earliest of the following:

19         (a)  Issuance of a temporary or final certificate of

20  occupancy on the particular building or structure, if

21  applicable;

22         (b)  Substantial completion of the particular building

23  or structure, as defined in the contract; or

24         (c)  Beneficial occupancy or use of the particular

25  structure, building, facility, or improvement, as defined in

26  the contract.

27  

28  Unless the contract provides otherwise, the public entity

29  shall pay out retainage to the vendor based upon the value of

30  the construction services rendered with regard to that

31  


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1  structure, building, facility, or improvement as compared to

 2  the total value of the purchase.

 3         (3)  Upon completion of all items on the final punch

 4  list or within 30 days after issuance of the punch list,

 5  whichever occurs sooner, the vendor shall submit a payment

 6  request for the appropriate amount of retainage. The owner may

 7  withhold up to 150 percent of the cost to complete any

 8  incomplete final punchlist items. Thereafter, ss.

 9  255.072-255.076 apply to the payment of any payment request

10  for retainage.

11         (4)  If the public entity fails to present to the

12  vendor a final punch list within the time periods provided in

13  subsection (1) or subsection (2), the project is considered to

14  be complete and the vendor shall submit a payment request for

15  the appropriate amount of retainage. Thereafter, ss.

16  255.072-255.076 apply to the payment of any payment request

17  for retainage.

18         (5)  All items that require correction under the

19  contract which are identified subsequent to preparation and

20  delivery of the final punch list must be considered warranty

21  items or make-good items, and such items have no effect on the

22  final payment of retainage provided in this section.

23         Section 12.  Section 255.078, Florida Statutes, is

24  created to read:

25         255.078  Public construction retainage.--

26         (1)  From the commencement of a public construction

27  project that is subject to ss. 255.072-255.078 until

28  50-percent of the contract value has been earned, a public

29  entity may not withhold as retainage more than 10 percent of

30  each progress payment to the vendor. When 50-percent of the

31  contract value has been earned, the vendor may submit a


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1  payment request to the public entity for up to one-half of the

 2  retainage withheld up to that time.

 3         (2)  After 50-percent of the contract value has been

 4  earned, the public entity may not withhold as retainage more

 5  than 5 percent of each progress payment to the vendor.

 6  However, the vendor may withhold retainage from payments to

 7  its subcontractors at a rate higher than 5 percent. The

 8  specific amount to be withheld must be determined on a

 9  case-by-case basis and must be based on the vendor's

10  assessment of the subcontractor's past performance, the

11  likelihood that such performance will continue, and the

12  vendor's ability to rely on other safeguards. The vendor shall

13  notify the subcontractor, in writing, of its determination to

14  withhold more than 5 percent of the progress payment and the

15  reasons for making that determination.

16         (3)  This section does not require the payment or

17  release of amounts that are the subject of a good-faith

18  dispute.

19         (4)  Sections 255.072-255.076 apply to the payment of

20  any payment request for retainage.

21         Section 13.  Paragraph (a) of subsection (2) is

22  amended, and subsections (10) and (11) are added to section

23  255.05, Florida Statutes, to read:

24         255.05  Bond of contractor constructing public

25  buildings; form; action by materialmen.--

26         (2)(a)1.  If a claimant is no longer furnishing labor,

27  services, or materials on a project, a contractor or the

28  contractor's agent or attorney may elect to shorten the

29  prescribed time in this paragraph within which an action to

30  enforce any claim against a payment bond provided pursuant to

31  


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1  this section may be commenced by recording in the clerk's

 2  office a notice in substantially the following form:

 3  

 4                    NOTICE OF CONTEST OF CLAIM

 5                       AGAINST PAYMENT BOND

 6  

 7  To: ...(Name and address of claimant)...

 8  

 9         You are notified that the undersigned contests your

10  notice of nonpayment, dated ............, ........, and served

11  on the undersigned on ............, ........, and that the

12  time within which you may file suit to enforce your claim is

13  limited to 60 days after the date of service of this notice.

14  

15         DATED on ............, .........

16  

17  Signed:...(Contractor or Attorney)...

18  

19  The claim of any claimant upon whom such notice is served and

20  who fails to institute a suit to enforce his or her claim

21  against the payment bond within 60 days after service of such

22  notice shall be extinguished automatically. The clerk shall

23  mail a copy of the notice of contest to the claimant at the

24  address shown in the notice of nonpayment or most recent

25  amendment thereto and shall certify to such service on the

26  face of such notice and record the notice. Service is complete

27  upon mailing.

28         2.  A claimant, except a laborer, who is not in privity

29  with the contractor shall, before commencing or not later than

30  45 days after commencing to furnish labor, materials, or

31  supplies for the prosecution of the work, furnish the


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1  contractor with a notice that he or she intends to look to the

 2  bond for protection. A claimant who is not in privity with the

 3  contractor and who has not received payment for his or her

 4  labor, materials, or supplies shall deliver to the contractor

 5  and to the surety written notice of the performance of the

 6  labor or delivery of the materials or supplies and of the

 7  nonpayment. The notice of nonpayment may be served at any time

 8  during the progress of the work or thereafter but not before

 9  45 days after the first furnishing of labor, services, or

10  materials, and not later than 90 days after the final

11  furnishing of the labor, services, or materials by the

12  claimant or, with respect to rental equipment, not later than

13  90 days after the date that the rental equipment was last on

14  the job site available for use. Any notice of nonpayment

15  served by a claimant who is not in privity with the contractor

16  which includes sums for retainage must specify the portion of

17  the amount claimed for retainage. No action for the labor,

18  materials, or supplies may be instituted against the

19  contractor or the surety unless both notices have been given.

20  Notices required or permitted under this section may be served

21  in accordance with s. 713.18. An action, except for an action

22  exclusively for recovery of retainage, must be instituted

23  against the contractor or the surety on the payment bond or

24  the payment provisions of a combined payment and performance

25  bond within 1 year after the performance of the labor or

26  completion of delivery of the materials or supplies. An action

27  exclusively for recovery of retainage must be instituted

28  against the contractor or the surety within 1 year after the

29  performance of the labor or completion of delivery of the

30  materials or supplies, or within 90 days after receipt of

31  final payment (or the payment estimate containing the owner's


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1  final reconciliation of quantities if no further payment is

 2  earned and due as a result of deductive adjustments) by the

 3  contractor or surety, whichever comes last. A claimant may not

 4  waive in advance his or her right to bring an action under the

 5  bond against the surety. In any action brought to enforce a

 6  claim against a payment bond under this section, the

 7  prevailing party is entitled to recover a reasonable fee for

 8  the services of his or her attorney for trial and appeal or

 9  for arbitration, in an amount to be determined by the court,

10  which fee must be taxed as part of the prevailing party's

11  costs, as allowed in equitable actions. The time periods for

12  service of a notice of nonpayment or for bringing an action

13  against a contractor or a surety shall be measured from the

14  last day of furnishing labor, services, or materials by the

15  claimant and shall not be measured by other standards, such as

16  the issuance of a certificate of occupancy or the issuance of

17  a certificate of substantial completion.

18         (10)  Notwithstanding any other provision of law to the

19  contrary, a claimant may not institute an action for the sole

20  purpose of recovery of retainage against the contractor or

21  against the surety issuing a payment or performance bond

22  pursuant to this section until:

23         (a)  The public entity has paid out that retainage to

24  the contractor and the time provided under ss. 218.70-218.76

25  or ss. 255.072-255.078 for payment of that retainage to the

26  claimant has expired;

27         (b)  The claimant has completed all work required under

28  its contract and 90 days have passed since the owner's receipt

29  of the contractor's last payment request; or

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31  


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    CS for CS for SB 1724                    First Engrossed (ntc)



 1         (c)  The claimant has made the written request to the

 2  owner provided in subsection (11) and has not timely received

 3  the requested information from the owner.

 4         (11)  An owner shall furnish in writing to a claimant

 5  who has provided labor, services, or materials to a project,

 6  within 5 business days after receipt of a written request from

 7  that claimant, the following information:

 8         (a)  The dates of all payment requests received by the

 9  owner from the contractor.

10         (b)  The dates of all payments made by the owner to the

11  contractor.

12         (c)  Whether the owner has received the contractor's

13  final payment request and, if so, the date the final payment

14  request was submitted by the contractor to the owner.

15         Section 14.  This act shall take effect July 1, 2003.

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