Florida Contractor and Subcontractor Disputes: A Plain Guide

Contractor and subcontractor disputes Florida projects produce usually start with one question: who owes what, and by when. The fight often begins with an unpaid invoice, a contractor who stops showing up, a change nobody approved in writing, or work that was done wrong or billed falsely. Each type of claim has its own rules, and some deadlines run faster than people expect. This page offers a general overview of common issues in construction payment disputes. Eduardo A. Maura is the lawyer responsible for this page. Ayala Law PA is located at 1646 W Snow Ave in Tampa. The firm serves clients in Florida courts and arbitration, including matters arising in Hillsborough County and the Tampa Bay area, and those matters are handled from the Tampa office.

Who Is Involved in a Florida Contractor and Subcontractor Dispute

Most disputes involve an owner, a general contractor, one or more subcontractors, and sometimes material suppliers. Each party usually has a contract only with the party directly above or below it in the chain.

The owner hires the general contractor. The general contractor hires subcontractors, such as electricians, framers, or plumbers. Subcontractors often buy materials from suppliers. This structure matters because contract rights usually run between parties who signed the same agreement. A subcontractor generally sues the general contractor for unpaid work under the subcontract, not the owner.

One project problem can create several competing claims at once. A late delivery might lead the general contractor to blame a supplier, the owner to withhold money from the general contractor, and a subcontractor to claim lost time it cannot recover. Sorting out which claims exist, and against whom, is the first real task in most cases.

Payment Disputes and Pay-When-Paid Clauses

A pay-when-paid clause ties a contractor’s payment to the owner’s payment for the same work. How a court reads that clause depends on its exact wording in the contract.

Under some pay-when-paid clauses, Florida courts may read the language as setting only the timing of payment, so a general contractor may still need to pay a subcontractor within a reasonable time even if the owner has not yet paid the general contractor. Some clauses are written more narrowly, so the words matter. Read the clause closely before assuming it protects a party, or fails to protect one.

Payment is most often held up for a few reasons. The owner may dispute an invoice, claim back-charges for defective work, or simply not have paid the general contractor yet. The contractor may also hold money because the subcontractor’s work is incomplete or a lien waiver was not delivered.

Proof of what is owed usually sits in a few places. Those include the signed contract, the schedule of values, pay applications, approved change orders, delivery tickets, daily logs, and lien waivers from earlier payments. A party that can match each invoice to a signed approval is in a stronger position than one relying on memory. Keep copies of everything, including emails that discuss payment.

Subcontractor Non-Payment and What Florida Law Provides

Each option has its own steps and deadlines.

A breach of contract claim is the most direct path. The subcontractor shows it did the agreed work, the contractor did not pay the agreed amount, and the amount can be proven. Payment terms on a construction project are usually set out in the contract, so reviewing them early is worthwhile. There is no single number that covers every case, so the payment and notice terms in the subcontract are the starting point.

Unpaid money can carry interest. Where interest accrues without a special contract rate, Florida law supplies a statutory rate, as addressed in § 687.01. If the subcontract includes an attorney’s fee clause, § 57.105 allows a court to award reasonable fees to the other party when that party prevails on the contract. That rule can work against the party that sues, so review any fee clause before a dispute starts.

A subcontractor should not wait while it negotiates. Preserve the claim by sending a written demand, keeping proof of the work, and tracking every notice and filing date. Also check whether the contract tries to shorten the time to sue. Under § 95.03, a contract provision that sets a shorter time to sue than the statute allows is void.

Default, Abandonment, and Contractor Walk-Off Claims

When a contractor stops work and leaves the job, the owner or general contractor may have a default claim. The contract’s notice steps often come first.

Default usually means the contractor did not perform as the contract requires. Examples include stopping work for an extended period, failing to supply qualified labor, or ignoring a written notice to fix a problem. What counts as default depends on the contract’s definition and its notice and cure terms. Many contracts require written notice and a chance to correct the problem before the other side may terminate.

If termination is proper, the owner may hire a replacement contractor to finish. The owner may then seek the extra cost of finishing above the original contract price, along with any overpayment for work not done. The contractor may dispute those numbers. Records of payments, bids for the replacement work, and the job’s status at walk-off all matter.

Timing also depends on where the project stood when work stopped. Under § 95.11, an action founded on the construction of an improvement to real property runs from the earliest of several dates. Those dates include the temporary certificate of occupancy, the certificate of occupancy, the certificate of completion, or the date of abandonment of unfinished construction. Confirm those dates in the permit records before relying on any deadline.

Construction Contract Fraud Claims

Construction contract fraud is a claim that someone knowingly misled another party to get paid, win a job, or avoid paying what was owed.

Examples include a contractor who misstates its license status, bills for work or materials never delivered, submits false invoices, or diverts project payments to other jobs. Fraud claims differ from breach of contract claims. A breach claim asks whether a promise was kept. A fraud claim asks whether someone deliberately misled another party. Because intent is harder to prove than a missed payment, fraud claims usually depend on more documentation.

Useful evidence includes the statements themselves, bank records showing where money went, and invoices compared against the work actually done. Licensing records also help. The Construction Industry Licensing Board publishes Florida contractor licensing requirements and license verification, which can confirm a contractor’s license status.

Under § 95.031, a fraud action runs from when the facts were discovered, or should have been discovered with due diligence. In any event, it must begin within 12 years after the fraud was committed. Waiting still carries risk, so gather proof early. When money moves out of a company during a dispute, § 726.105 lists factors a court may consider. One factor is whether the debtor had been sued or threatened with suit before the transfer.

Scope, Change Order, and Delay Disputes

Scope and change order disputes usually begin when the parties disagree about what the contract requires and whether extra work was approved.

Scope fights often start with the plans, specifications, and bid documents. A subcontractor may say a task was outside its bid, while the general contractor says the task was included. Comparing the drawings, the specifications, and the subcontract’s description of work is the usual first step.

Change orders are the main tool for adding or removing work and money. A written, signed change order makes payment much easier to prove. Verbal instructions create a harder record. When a party does extra work without written approval, the other side may argue it was never agreed. Daily logs, emails, and texts showing that the owner or contractor directed the work can help fill that gap.

Delay claims ask who caused lost time and who pays for it. Delays can come from weather, late deliveries, design changes, or one trade blocking another. Responsibility usually depends on the contract’s schedule terms and on who controlled the cause. A party facing delay costs should record the dates, the cause, and the extra costs as they happen.

Defective Work, Incomplete Work, and Warranty Questions

Defective work is work done wrong. Incomplete work is work not finished as the contract requires. Both can support a claim, but the deadlines can be strict.

A crooked wall or a leaking roof is defective work. A missing final coat or an open punch list is incomplete work. Normal wear over time is not the same as a construction defect. Many disputes turn on that line.

Section 95.11 lists, among the actions to be commenced within five years, a legal or equitable action on a contract, obligation, or liability founded on a written instrument, subject to exceptions the statute sets out, including actions to enforce a claim against a payment bond and actions for a deficiency judgment. For a latent defect, which is a hidden problem, the clock starts when the defect was discovered or should have been discovered with due diligence. In any event, the action must be commenced within seven years after the certificate or abandonment date.

Repairs do not automatically restart the clock. For work within the scope of a duly issued building permit and certificate, the statute says that correcting or repairing completed work does not extend the time to sue, whether the repair was under warranty or otherwise.

Owners and contractors should document problems with dates, photos, written notices, and inspection reports. When the contract requires it, give the other side a fair chance to inspect and repair. Documented repair offers can matter later if the dispute reaches court.

Construction Liens and Lien Foreclosure Under Chapter 713

A construction lien is a claim recorded against property to secure payment for work or materials under Chapter 713 of the Florida Statutes, which sets the notice and enforcement requirements that apply to it.

Lien foreclosure is the court action that enforces the lien against the property. Because a lien affects the owner’s title, owners and lienors alike should read the chapter closely and check the recorded documents. The exact deadlines depend on the type of claim and the timing of the work, so calendar them early. For more on enforcement, see the construction lien foreclosure page.

Payment Bonds on Public Projects

A payment bond generally backs up the contractor’s duty to pay the people who work on a project. It is most common on public construction.

Under § 95.11, an action on a payment bond runs from the last furnishing of labor, services, or materials. If the general contractor is the principal on a bond covering the same project, the one-year period under section 95.11(5)(e), Florida Statutes, runs from the claimant’s last furnishing of labor, services, or materials or from the general contractor’s last furnishing on that project, whichever is later. The same rule applies to private work as well as public work.

Reviewing the bond documents early helps a business understand what a bond claim involves. Reviewing the specific bond with our team early can help a business plan its next steps. The payment bond claims page covers this in more detail.

Bond claims and contract claims against a contractor are different types of claims, and each depends on its own documents and facts. The rules for each differ. Review both paths before choosing one, because an early choice can affect what remains available later.

Early Steps That Protect Your Rights

The first steps are to gather the contract paperwork, calendar every deadline, and preserve evidence before anything is changed or deleted.

Start with the contract, change orders, invoices, lien waivers, and written communications. Read them before sending a demand. A demand that misstates the contract can weaken a position. Note any dispute resolution, fee, notice, or limitation clause.

Calendar deadlines now, because some expire well before a lawsuit is filed. Under § 95.11, each limitation period depends on the claim type and its start date. A contract cannot cut that time short. An arbitration can also affect timing. Under § 95.051, the running of the limitations period is tolled, meaning paused, by a pending arbitral proceeding about the dispute that is the subject of the action. Do not treat that as a reason to wait.

Preserve photos, daily logs, payment records, delivery tickets, and text messages. Keep original files, and do not delete messages, even unhelpful ones. A common mistake is waiting for the other side to make the first move. Another is sending informal messages that admit fault or change the deadlines.

Where These Disputes Are Resolved and How Ayala Law PA Handles Them

Contractor and subcontractor disputes in Florida are usually resolved in circuit court, in arbitration when the contract requires it, or through mediation along the way.

Under § 682.02, an agreement in a record to submit controversies to arbitration is valid, enforceable, and irrevocable. The exception is a ground that exists at law or in equity for revoking a contract. If a party refuses to arbitrate, § 682.03 allows a court to order arbitration. The court may not refuse because the claim lacks merit.

Court-ordered mediation is another step. Under § 44.102, a court must, on one party’s request, refer a filed civil action for monetary damages to mediation. The rule has listed exceptions, and the requesting party must be able to pay the costs or the costs must be equitably divided.

Venue rules also matter. Under § 47.011, actions must be brought in the county where the defendant resides, where the cause of action accrued, or where the property in litigation is located.

Ayala Law PA is located at 1646 W Snow Ave in Tampa, and clients are served from that Tampa office. The firm handles business, commercial, contract, shareholder, construction, real estate, and international trade matters in Florida courts and arbitration. That includes disputes arising in Hillsborough County and the wider Tampa Bay area. Eduardo A. Maura is the lawyer responsible for this page.

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