Construction Lien Law and Material Suppliers Part 1
Material suppliers are those who furnish materials under contract to an owner, contractor, subcontractor, or a sub-subcontractor for the completion of a project. According to Florida law, material suppliers have the right to file a claim of lien for payment against an owner’s property when they are not paid-in-full for the supplies they’ve furnished on a construction project. So how can material suppliers ensure they get the compensation they deserve? Our Jacksonville construction lawyers strongly advise you to exercise your lien rights.
Whenever you’re dealing with lien rights, you’re dealing with deadlines. For a claim of lien to be valid, it must be filed on time to secure lien rights. For private projects, liens must be filed within 90 days of the last day materials were supplied and served to the owner 15 days after filing the lien. Enforcement can begin one year after recording a lien. For state and county projects, if a supplier is not in contract with the prime contractors, the supplier must file a bond claim with the prime contractor and the surety within 90 days of last furnishing materials to the project. A lawsuit can be filed within one year from the date materials were last furnished on the project.
When it comes to public projects, material suppliers can seek remedy for payment under Florida’s Prompt Payment Act.
A Notice to Owner (NTO) must be delivered to an owner before a project begins. The NTO can be sent early; however, sending it late (past 45 days of commencement) renders it useless. For private projects, material suppliers must follow the notice requirements based on who they are contracting with. For state and county projects, suppliers not in contract with the prime contractor must deliver a preliminary notice to the prime contractor within 45 days of first furnishing materials to the project.
To learn more about construction lien law for material suppliers, read part two of our article.
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.