Our Tampa construction attorneys believe that knowledge is one of the best lines of defense for construction professionals. An awareness of your rights, as well as your responsibilities as a contractor, will save you many headaches down the line. One particular area we would like to highlight is a contractor’s responsibility with regard to the residential construction projects they pursue.
What You Need to Know
Division 1 and Division 2 contractors that contract more than $2500 for the repair, restoration, improvement, or construction to a residential property, must include the Florida Homeowners’ Construction Recovery Fund warning into their residential construction contracts. This statutory warning informs homeowners of their right to recover funds in the event they are wronged by a licensed contractor. Under Section 489.1425 of the Florida Statutes, contractors are required to notify property owners of the Fund.
How Owners Can Seek Recovery
The Construction Licensing Board (CILB) has stipulations for when and how homeowners may seek recovery. Complaints are filed through the Department of Business and Professional Regulation; however, claim forms are submitted to the CILB. The following actions qualify owners for potential recovery.
- A contract with a licensed contractor
- Entered into a contract with a Division 2 contractor on or after July 1, 2016
- Possess a final judgment or order of restitution against a contractor or business
- Suffered financial loss due to the contractor’s violation
To understand your rights against an owner’s ability to recover, we suggest you get the assistance of a Tampa construction lawyer.
Types of Violation Eligible for a Claim
If a homeowner has suffered a financial loss due to a contractor’s negligence, they may be eligible for a claim. Types of violations that warrant a homeowner’s eligibility occur when:
- A contractor has mismanaged funds
- A contractor abandons the project for over 90 days
- A contractor falsely claims that all payments have been made to sub-tiers
- A contractor falsely claims they have provided workers’ compensation and insurance coverage
What Happens if You Don’t Have the Notice?
Always included the warning in your residential contracts or else you risk CILB fines imposed against you if you are found in violation. For the first violation, you can be fined $500. For the second violation, you can be fined $1000.
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.