Legal Question in Construction Law in Florida

Re: When General Contractors overcharge & lein deal

Because the facts are a little unclear, I recommend that you speak with an attorney for specific legal advice. However, as a threshold matter, it is important to remember that you are not totally at the contractor's mercy. Both you and the general contractor have legal rights and obligations. In construction law, verbal contracts can be very difficult to enforce because the exact terms and conditions of the contract are hard to prove. What you feel is a legally binding contract the GC may characterize as merely a "rough estimate". For future reference, you'll be much better off if you seriously consider getting all future contracts in writing.

As for the lien, it is a claim against the Owner's property, not against you. Read your contract with the Owner carefully and determine whether the Owner is contractually obligated for the cost overrun. If you determine that the Owner is without blame, the ethical thing to do is to keep them out of the dispute and have the lien removed.

In order to have the lien removed, you will need a Final Release of Lien from the GC, or you can transfer the Claim of Lien to a bond. Transferring the Claim of Lien to a bond will cost you some money, so figure that into your negotiations with the GC. You may also be able to get the lien thrown out for failure to comply with Florida's Lien Laws, but you will likely need a lawyer's assistance for that type of legal challenge.

If you cannot come to an agreement on how much is owed, you may wish to go to small claims court to resolve the matter or hire an attorney. If you decide to go to small claims court without a lawyer, the Clerk of Court may be able to assist you in filling out the paperwork. But remember, the Clerk of Court's personnel are not lawyers and cannot give you legal advice. Whether you'll win or lose is for the judge to decide and will probably turn on which party has the most credible testimony and witnesses. Be absolutely sure to bring all the evidence you have in the case. Best of luck to you, hope the information was helpful.

Sincerely,

FRANK V. REILLY, P.A.

Frank Reilly