Legal Question in Construction Law in Florida

construction lien

Our contractor hasn't touched our house in 8 weeks (building a new home). He puts the blame on the plumbers. We called the plumbers and did some investigating. We found out we have $26000 in liens on our house. This is mostly for items which he has already taken a draw from the bank on. We contacted the bank and their response was ''that's your problem your contractor isn't paying his bills''. The contractor can't be found and won't return calls. According to our contract, he has until May 2 to finish the house. It's not even dried in yet. How do we reclaim our losses? He has left a trailor on the property. How do I take legal possession of it so it can be moved (eyesore)? This guy claimed to have property free and clear. Is there anyway we can prohibit him from putting it in someone else's name to protect his assets? My wife and I decided to sub-contract the house ourselves, but the bank won't release money to us until all the liens are paid. We are stuck paying rent for another year, interest on our loan, and finding the time to handle this situation, and preparing for the arrival of twins. Thanks for your reply.


Asked on 4/11/04, 2:24 pm

2 Answers from Attorneys
Randall Gilbert Gilbert & Caddy P.A.

Re: construction lien

The department of Business and Professional REgulation'c Construction Industry Licensing Board may take administrative action pursuan to Florida Statute Section 489.128 for (1) abandoning the job and (2) for allowing liens to be filed against the project.

As to your remedies. First if a performance bond has been posted then I would make a claim that the surety pick up the project and recommence. If not then I would need to see if there were "Notice to OWners" that were properly filed, and whether the liens were properly recorded against your property.

Then I would need to know why the Construciton Lender made the disbursement to the Contractor without receiving "Releases of Lien" from the lienors that have now placed liens on your property. Then there would be multiple steps that would need to be taken in order to hire a substitute contractor. Should you need assistance, and it sounds like you do, then feel free to contact me directly during normal busines hours.

Sincerely yours,

Randall Gilbert

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Answered on 4/12/04, 12:13 am
Frank Reilly Reilly Roche LLP

Re: construction lien

Under Florida law, you may be required to pay subcontractors and suppliers for work performed regardless of whether you have already paid the general contractor. Under some circumstances, this may result in your having to pay twice for the very same work.

I understand your desire to go after the general contractor, and you should. However, you should consider making the lien issues your first order of business. If you already have $ 26,000 in liens, there is a good chance that there may be even be more unpaid bills out there.

My recommendation is that you speak with an experienced construction lawyer right away. Florida lien law can be rather complicated and some good legal representation may help to greatly reduce your financial exposure.

Best of luck to you. If you have any further questions, please do not hesitate to give me a call at 954.229.1008.

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Answered on 4/12/04, 9:23 am


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