Legal Question in Construction Law in Florida
I am building a new home and want to ensure my contractor pays all sub-contractors, what form(s) can help me to ensure there are no liens filed?
1 Answer from Attorneys
You have several options to ensure subcontractors are paid and that no liens are filed. Although it does not guarantee the contractor will pay the subs, one way to ensure no liens are filed is to require the contractor to obtain a payment bond. When construction is done without a bond, your property is fair game for liens if the subs are not paid. You, as the owner, have a number of legal duties under Florida with which you must comply in order to maximize your legal protection from claims. For example, you may have to record and/or post a notice of commencement. In addition, prior to making payments to the contractor, you should determine that potential lienors have been paid to the extent of your payment to the contractor. This is usually done by obtaining releases of lien from all persons who have served notices to owner to the extent of the payment being made, a release of lien from the contractor to the extent of the payment being made, and an affidavit from the contractor prior to making partial payments to the effect that all potential lienors have been paid to the extent of the payment made. A similar procedure should be followed prior to making final payment. This is just the tip of the iceberg of the ways you can protect yourself. You should consult with an experienced construction attorney to learn more. Call me for free initial consultation.
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