Legal Question in Construction Law in Florida

wasted Builders Risk and interest

The construction of our home was to start within 90 days of permits being issued according to contract. The permits were issued on July 27th 2005. The consturction started March 10th 2006. Eight months late with no explanation. We tried many times to talk to our builder but had no success with phone calls, faxed letters or mailed letters. They would always refer us to the design center.(which is a bunch of women sitting behind a desk and cannot answer your questions) The delays have cost us in unessary interest payments and will cost even more to lock in our interest rate for the remainder of the time it takes to finish the house. We were also required to take out Builders Risk Ins. at time of signing paperwork for construction of home. For 8 months the BR insurance has covered blue sky because there was nothing on the lot to be covered. So now we will have to pay for another full year of BR insurance. Is there anything we can do to recover the money thrown away due to the builder not starting when they said they would start and not having it finished when it was supose be completed by april 30th 2006


Asked on 3/28/06, 4:16 pm

1 Answer from Attorneys
Randall Gilbert Gilbert & Caddy P.A.

Re: wasted Builders Risk and interest

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney�s individualized advice for you. By reading the �Response� to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

RESPONSE: In my opinion, there is no way to tell right now whether you have any damages. Accoriding to your facts, the project is not required to be finished until April 2008.

Therefore, you assumed the risk that at a minimum you would be making BR payments until April 2008. Therefore, if they complete prior to that time, then there is an argument that you would not be entitled to reimbursement of the BR payments.

However, you can certainly try to negotiate witholding the extra BR payments that you made and which should not have been necessary, had the Contractor started when they contractually agreed to begin.

As far as the interest rates going up, once again, you already agreed that the project was required to be completed by no later than April 2008. Therefore, until they pass this point, I do not see how the contractor has breached its obligations to you. Therefore, at this time, I do not see that you have any claim, but to be sure, it is best to present everything to a local attorney, especially your contract.

Good Luck,

Randall Gilbert

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Answered on 3/28/06, 6:34 pm


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