Many construction disputes that Florida business owners encounter begin with written documents. The contract, the payment record and any written notice show where you stand. Florida law also sets filing deadlines that can start from a project event, such as a certificate of completion or the date work stopped. Those deadlines can run while a dispute is still being discussed, so the first steps matter.
This guide covers the main problem types, the documents to collect and the paths a claim can take. It is general information, not advice about your project.
Start With the Written Notice and Your Contract
Most construction disputes begin with a written notice and a close reading of the contract. A clear notice puts dates, amounts and contract terms in one place. The other side can’t easily claim it never knew about the problem.
A useful notice names the project and the parties. It states the dates of work and the amount you say is owed or the defect you say exists. It also cites the contract section that supports your position. Keep the tone plain. Facts carry more weight than anger.
A demand letter is not the same as the formal presuit notice required under Florida’s Chapter 558 before a construction defect action is filed. A demand letter asks the other side to pay or repair. Mixing the two can leave a gap in your rights.
Gather these documents first. You’ll want the signed contract, change orders, invoices, payment applications, lien waivers, photos, daily logs and every email or text about the work. Put them in date order. A clear timeline makes your claim easier to explain.
Subcontractors should review notice rules early, because they can affect lien rights. Owners should keep a record of every payment they make.
If a missed payment or a defective job on your Florida project has you deciding whether to send a notice or file suit, our team can help you sort through your options. Talk it through with our team — we can walk you through how a situation like yours is usually handled and what your options are.
Reading the Contract for Payment, Change Order and Dispute Clauses
The contract usually decides when you get paid, how changes are priced and where a dispute goes. Read these clauses before you send a demand or file anything.
Payment terms set the schedule for progress payments and final payment. Retainage is money held back until the work is finished, and it can slow your cash flow. Change order clauses explain how added or removed work gets approved and priced. A missing written change order is a common source of dispute. Termination clauses explain how either side can end the job and what notice each side must give.
The dispute clause matters too. Some contracts send disputes to mediation, arbitration or court. Under § 682.02, a written agreement to arbitrate is valid, enforceable and irrevocable, except on grounds that exist for revoking any contract. The court decides whether an agreement exists. Under § 682.03, a court may not refuse to order arbitration just because the claim lacks merit. Federal law can also apply. Section 2 of the Federal Arbitration Act states that a written provision in any maritime transaction or a contract evidencing a transaction involving commerce to settle by arbitration a controversy arising out of such contract or transaction is valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.
Contract type changes the rules. An owner-contractor agreement, a subcontract, a design contract and a supply agreement each carry different terms. Confirm which contract you signed and which side you are on.
Florida Deadlines That Control Your Options
Florida construction claims come with filing deadlines, and the start date depends on the type of claim. For many construction claims, the clock starts at a project milestone, not on the day you first complained.
Under § 95.11, an action on a written contract must be brought within five years, and an action on an oral or unwritten contract must be brought within four years. Under Fla. Stat. § 95.11, a legal or equitable action on a contract, obligation, or liability founded on a written instrument must be commenced within five years. For a latent defect, a hidden problem, the time runs from when the defect was discovered or should have been discovered. Even then, the case must start within 7 years after that certificate or abandonment date.
Repairs to permitted work do not restart the clock. In construction cases, if the other side files first, a counterclaim, cross-claim or third-party claim arising from the conduct or occurrence set forth in that pleading may be filed within 1 year after the pleading is served, even if it would otherwise be late.
A contract cannot shorten the time to sue. Under § 95.03, a contract provision that sets a shorter period than the statute allows is void. Under § 95.031, a cause of action accrues when its last element occurs. Under § 95.051, the running of the period is paused while an arbitration on the same dispute is pending.
Claims based on a written contract carry a separate five-year period under the same statute, so confirm which period fits your claim.
Payment Disputes, Lien Rights and Bond Claims
Where a construction project has a payment bond, subcontractors and suppliers who have not been paid may be able to seek payment through that bond, and on a bonded private project or a public project, the bond may take the place of lien rights against the property rather than add to them.
The form, timing and notices all matter. A Florida construction lien depends on several required steps, including serving a notice to owner under section 713.06, recording the claim of lien within 90 days of final furnishing under section 713.08, and filing a foreclosure action within one year of recording under section 713.22, and a single missed step can defeat the lien even when the money is owed.
Lien foreclosure is a court case to enforce a valid lien against the property. Commercial owners, developers and tenants each face different issues, so check your role before you act.
Payment bond claims run on a separate clock: under section 95.11, Florida Statutes, an action on a payment bond generally must be brought within one year from the claimant’s last furnishing of labor, services or materials, and a claim on a private bond under section 713.23 also carries its own notice requirements. Under § 95.11, a claim on a payment bond runs from the last time labor, services or materials were furnished. If the contractor is the principal on a bond on the same project, the date of its last furnishing can apply instead, whichever is later. Some public-project bonds follow other rules, so confirm which statute applies.
An improper lien can cloud an owner’s title. The timing of that challenge matters, so act promptly.
Construction Defect Claims: What Qualifies and What to Document
A construction defect is work that fails the contract, the plans or applicable building requirements. Ordinary wear, a scope disagreement and a schedule delay are different problems.
Ask whether the work was built wrong or simply isn’t what you wanted. A defect is work that does not meet what was agreed. Examples include cracked foundations, failed waterproofing or the wrong materials. A scope disagreement is a dispute about what the contract required in the first place. Wear and tear is what normal use causes over time.
Strong defect claims rely on records. Useful evidence includes dated photos and video, inspection reports, written repair estimates and written opinions from a qualified inspector or engineer. Keep the plans, specifications, permits and inspection records too. Building department records show what was inspected and when.
Hidden defects raise a timing question. As covered above, the clock for a latent defect can run from discovery.
Common mistakes make defects harder to prove. Owners often repair the problem before photographing it. Others wait until the project ends to write down problems, or rely on verbal promises. Document each problem when you first see it.
Contractor Abandonment and Walking Off the Job
Abandonment generally means a contractor stops work and does not return to finish the job. The date work stopped can matter for when a claim must be filed.
Under the construction rule in § 95.11, the date of abandonment can start the clock when construction is not completed. Write that date down and don’t guess at it. Keep crew logs, text messages and dated site photos. A written default notice that follows the contract’s own notice terms gives your record a clear starting point.
Read the termination clause closely. Look for the notice the contractor must receive, any cure period to fix the problem and how the owner may finish the work. Following those steps closely can help protect your position. Skipping them gives the other side an argument.
Lien or bond rights may also apply. The remedies available depend on the contract, the facts and the forum. The Florida Construction Industry Licensing Board publishes licensing information.
Not sure what your next step is?
Talk it through with our team — we can walk you through how a situation like yours is usually handled and what your options are.
Pay-If-Paid Clauses and Construction Trust Fund Misuse
A pay-if-paid clause ties a subcontractor’s payment to the owner’s payment to the contractor. That can push the risk of owner nonpayment down to subcontractors and suppliers.
Read the clause closely. Its wording determines whether it shifts risk or only sets timing. Whether it is enforceable depends on the language and on Florida law. A lawyer reviews the clause against the facts before anyone relies on it.
Under section 713.345, Florida Statutes, money paid to a contractor or subcontractor for an improvement to real property is held for the benefit of the people who furnished labor, services or materials for that project, and misapplying those funds with intent to defraud is a crime. Questions about where payments on a construction project actually go are often central to disputes between owners, contractors and subcontractors. Whether those rules apply to a particular payment depends on the facts and the governing statute. Check before you rely on them.
Misuse of project money can support a claim. A contractor that collects payment but does not pay its subcontractors creates a paper trail. Keep bank statements, pay applications, lien waivers and dated payment records. Compare what was paid with what was owed.
Construction Contract Fraud and Tortious Interference Claims
Construction contract fraud means one party used false statements or hidden facts to get a contract or payment. Tortious interference means someone improperly disrupted a business relationship you had, such as a contract with a customer or vendor.
Fraud can take several forms. A contractor might claim a license it does not hold, bill for materials it never delivered or substitute cheaper materials than the contract requires. The proof is usually in writing. Useful records include the bid, the contract, invoices, delivery tickets and emails that show what was promised and what was delivered. Photographs and witness accounts can help too.
Tortious interference covers conduct that improperly disrupts your existing relationships. One example is a competitor pressuring your customer to cancel. Proof usually centers on the relationship that was disrupted, what the other side knew and what it did.
These claims turn on specific facts. The strength of a claim depends on the evidence, and no one can predict the outcome from a general summary.
Choosing a Path: Negotiation, Arbitration or Court, and Whether It Is Worth Suing
Whether a lawsuit is worth it depends on the amount in dispute, whether the other side can pay a judgment and what the case will cost in money and time. Each route has different timing and fee risks.
Negotiation is often the quickest route when both sides want a deal. Mediation adds a neutral person to the talks. Under § 44.102, a Florida court must refer a filed civil action for monetary damages to mediation when one party requests it, provided that party is willing and able to pay the mediation costs or the costs can be equitably divided. Exceptions include actions to collect a debt and cases where the parties agreed to binding arbitration.
Arbitration is a private process set by the contract. Court is a public process governed by court rules. Each route has different timing and different rules for discovery and appeals.
Fee risk deserves attention early. Under § 768.79, a defendant’s offer of judgment that is not accepted within 30 days can shift costs and attorney’s fees. A defendant’s proposal for settlement under § 768.79 allows fee recovery when the judgment is at least 25 percent less than the offer, and a defendant may also recover fees after a judgment of no liability. A plaintiff’s offer applies when the judgment is at least 25 percent greater than the offer. The statute applies only to civil actions for damages. Under § 57.105, subsection (7) provides that when a contract allows attorney’s fees to one party, a court may also allow fees to the other party if that party prevails. The same statute requires fees against a losing party that knew a claim lacked support.
Quick answers to common questions
Is it worth suing a contractor? It depends on the amount at stake, whether the contractor can pay a judgment, and the cost and time the case will take. Those factors are weighed before any filing.
How long do I have to sue a contractor in Florida? It depends on the claim type and its start date. Florida law sets different filing deadlines for claims on written contracts and claims on oral or unwritten contracts, and a missed deadline can bar a claim, so it is wise to contact our team early in a dispute.
Is arbitration required under a construction contract? Only if the contract includes a written agreement to arbitrate. When it does, Florida law generally enforces that agreement.
Does a pending arbitration stop the deadline? Under Florida law, a pending arbitration on the same dispute pauses the running of the period. Confirm how that applies to your claim.
Serving Hillsborough County and Tampa Bay From Our Tampa Office
Ayala Law PA serves businesses in Hillsborough County, Tampa and the wider Tampa Bay area from its only office, at 1646 W Snow Ave in Tampa, Florida. Clients in Brandon, Riverview, Plant City and Temple Terrace are served from that same Tampa office.
Eduardo A. Maura is the lawyer responsible for this page. Our team, including support and office staff, supports the firm’s day-to-day work. The firm focuses on business litigation, including construction litigation, commercial litigation, contract disputes, shareholder and partnership disputes, real estate litigation and international trade litigation. That work takes place in Florida courts and in arbitration. You can read more about construction litigation on our practice page.
If a missed payment, a defective job or a walk-off has you deciding whether to send a notice or file suit, reach out to Ayala Law PA. Call (305) 570-2208 or send a message through our contact page, and our team will talk through your next steps.
