The Florida Construction Lien Law is a statutorily created method for placing a lien on real property. That method serves the fundamental purpose of protecting those who have provided labor and materials to improve the real property. It is important to note that the construction lien law applies only to privately (non-government) owned construction projects. Usually, government-owned construction projects require a payment bond, which provides payment protection for materialmen, subcontractors and sub-subcontractors.
A contractor is entitled to a construction lien on improved real property. Additionally, Florida law also permits a materialman, a subcontractor or a sub-subcontractor who has improved real property to seek payment directly from the owner of the real property, even though their contract is with someone other than the owner. After recording a valid construction lien, the method for enforcing a lien is accomplished by filing a construction lien foreclosure action in court, which forces a judicial sale of the owner’s real property and applies the sale proceeds to the debt.
Strict compliance with the construction lien law is necessary to preserve lien rights. Timeliness and accurate records are crucial. Failure to meet deadlines under the construction lien law will result in the loss of your lien rights. The construction lien law can be difficult to navigate and as a result, it is important to hire legal counsel who understands and focuses on construction lien and payment bond claims.