construction contract damages due to delay

A Florida construction lien can give contractors, subcontractors, laborers, material suppliers, and certain design professionals a security interest in improved real property when they are not paid. The remedy can be powerful, but it is governed by strict notice, recording, service, and enforcement requirements. Missing a deadline or misstating the claim can defeat an otherwise valid lien.

Florida construction lien rules at a glance

Who may qualify: Depending on the contract chain and the work performed, lien rights may belong to contractors, subcontractors, sub-subcontractors, laborers, material suppliers, and specified professional lienors.
Notice to Owner: Many lienors without a direct contract with the owner must ensure that a Notice to Owner is received before or within 45 days after first furnishing labor, services, or materials. Exceptions and earlier-payment rules can affect that deadline.
Claim of Lien: The claim generally must be recorded no later than 90 days after the lienor’s final furnishing.
Service after recording: The owner must be served before the Claim of Lien is recorded or within 15 days afterward.
Enforcement: A lien foreclosure action ordinarily must begin within one year after recording, but statutory procedures can shorten the period to 60 days or even 20 days.
Owners have defenses: Payment records, notices, releases, licensing issues, exaggerated amounts, and failures to follow Chapter 713 may limit or defeat a lien.

These are general guideposts, not a substitute for analyzing the contracts, payment history, notices, work dates, and property records in a particular dispute.

What does a Florida construction lien do?

A construction lien does not automatically establish that the claimed amount is owed. It records a statutory claim against the improved real property and can support a lawsuit to foreclose the lien. The lienor still must prove entitlement, compliance with applicable conditions, and the amount due. The owner may assert contractual, payment, statutory, and factual defenses.

Construction lien claims often overlap with breach-of-contract, unjust-enrichment, defective-work, delay, and payment disputes. The lien remedy therefore should be evaluated together with the underlying contract and the available damages. Our Real Estate and Construction Litigation practice addresses these connected issues for owners, contractors, and other project participants.

Who may have construction lien rights?

Florida’s Construction Lien Law identifies several categories of potential lienors. The analysis begins with two questions: what labor, services, or materials were furnished, and where the claimant sits in the contract chain.

Direct-contract lienors: A contractor or other qualifying claimant who contracted with the property owner generally is in privity with the owner.
Non-privity lienors: Subcontractors, sub-subcontractors, laborers, and material suppliers may have lien rights even though the owner did not hire them directly, but notice requirements often apply.
Professional lienors: Certain architects, landscape architects, interior designers, engineers, and surveyors may have lien rights for qualifying professional services under section 713.03.

Eligibility is fact-specific. The claimant’s role, scope of work, contractual relationships, licensing status, project type, and statutory definitions all matter. Public projects generally involve payment-bond remedies rather than liens against public property.

Notice of Commencement and Notice to Owner

Notice of Commencement

The owner ordinarily records a Notice of Commencement before construction begins when Chapter 713 requires one. It identifies the property, owner, contractor, lender if any, surety if any, and the persons designated to receive notices. It also helps establish the project framework for lien notices and payments. A Notice of Commencement usually expires one year after recording unless it states a different period or is properly amended or extended.

Notice to Owner

A Notice to Owner tells the owner that a person who was not hired directly is furnishing labor, services, or materials and may look to the property for payment. Under section 713.06, many non-privity lienors must serve the notice before or within 45 days after first furnishing. The notice can be required sooner in practical effect if the owner makes a final payment before the 45-day period ends.

Service must comply with section 713.18. The safest approach is to identify all required recipients and complete service early, with proof. Waiting until the final days creates unnecessary risk about delivery, addresses, and the date of first furnishing.

The principal construction lien deadlines

1. Record the Claim of Lien within 90 days

Under section 713.08, a Claim of Lien generally must be recorded no later than 90 days after the claimant’s final furnishing of labor, services, or materials. “Final furnishing” is not automatically the date of the certificate of occupancy, final payment, or overall project completion. Warranty work, punch-list work, or correction of earlier work may not extend the deadline. Courts examine whether later work was part of the original contractual performance rather than an effort to revive an expired lien period.

2. Serve the owner within 15 days after recording

The Claim of Lien must be served on the owner before recording or within 15 days after it is recorded. Failure to serve it in time can make the lien voidable to the extent the delay prejudices a person entitled to rely on the service. The claim also must contain the information required by statute and be signed and sworn to by the lienor or an authorized person.

3. Deliver the contractor’s final payment affidavit

A contractor in direct privity with the owner generally must deliver the statutory final payment affidavit to the owner at least five days before instituting an action to enforce the lien. The affidavit identifies unpaid lienors and the amounts due, or states that all lienors have been paid. It is a distinct requirement from recording and serving the Claim of Lien.

4. File the enforcement action before the deadline expires

The ordinary deadline to enforce a recorded lien is one year after recording. An owner can shorten that period. A recorded and served Notice of Contest generally reduces the period to 60 days after service. A complaint under section 713.21 can require the lienor to show cause and bring an enforcement action within 20 days after service or risk cancellation of the lien. Because these shortened deadlines can arrive unexpectedly, every lienor should monitor the property records and legal papers after recording.

What information belongs in a Claim of Lien?

The statutory form calls for the lienor’s name and address, the owner, the contracting party, a description of the labor, services, or materials, the contract value, the amount unpaid, the dates of first and final furnishing, the date and method of serving the Notice to Owner if required, and a sufficient description of the real property. Errors do not all have the same consequence, but a claimant should not treat the form as a rough estimate or a collection letter.

The amount should be supported by the contract, change orders, invoices, payments, credits, and project records. Claims for delay, lost profits, financing charges, or other contract damages may belong in a lawsuit but may not be lienable. That distinction is important in disputes involving Florida construction contract damages.

Owner protections and defenses

An owner should not ignore a Notice to Owner or a recorded lien, even if the owner believes the general contractor was paid. Florida law can expose an owner to claims by unpaid downstream participants, but it also provides tools to manage that risk.

Confirm that the Notice of Commencement is accurate and remains effective.
Maintain a log of every Notice to Owner, payment request, affidavit, and release.
Use progress and final releases that correspond to the precise payment and work period.
Before final payment, review the contractor’s affidavit and resolve listed unpaid claims.
Examine whether the claimant was eligible, served required notices, recorded and served the lien on time, and calculated only lienable amounts.
Consider a Notice of Contest, show-cause proceeding, or transfer to security when strategically appropriate.

Under section 713.20, a promise to waive lien rights in advance is unenforceable. A properly timed release, however, can waive rights for the labor, services, and materials it covers. Parties should avoid releases that overstate the amount received or cover a broader period than intended.

Transferring a lien to a bond or cash deposit

Section 713.24 allows an interested party to transfer a recorded lien from the real property to a cash deposit or surety bond. The transfer can clear the property’s title for a sale, refinancing, or continued project financing. It does not decide whether the lien is valid or how much is owed. The dispute continues against the substituted security, subject to the same defenses and enforcement requirements.

Fraudulent or exaggerated construction liens

A lien can be fraudulent under section 713.31 if the lienor willfully exaggerates the amount, includes work not performed or materials not furnished, or compiles the claim with such gross negligence that it reflects a willful exaggeration. A fraudulent lien can be a complete defense to enforcement and may expose the lienor to damages and attorney’s fees.

Not every error or disputed amount is fraud. Florida law distinguishes a willful exaggeration from a minor mistake, ordinary negligence, or a good-faith disagreement about value or entitlement. The surrounding records and the claimant’s method of calculation matter.

Foreclosure, attorney’s fees, and related claims

A construction lien is enforced through a civil action. The complaint commonly seeks foreclosure and may include contract or equitable claims. Interested parties and other lienholders may need to be joined. A lis pendens can place third parties on notice that the property is involved in pending litigation.

Section 713.29 permits the prevailing party in an action to enforce a lien to recover a reasonable attorney’s fee for trial and appeal. Prevailing-party status and the amount of fees can become significant litigation issues. Parties should evaluate fees, proof, collectability, available security, and business objectives before choosing a strategy.

Evidence to preserve in a lien dispute

Early document preservation can determine whether a lien claim or defense succeeds. Useful records often include:

the prime contract, subcontracts, proposals, plans, and specifications;
change orders, field directives, daily reports, photographs, and inspection records;
the Notice of Commencement and every Notice to Owner, with proof of service;
payment applications, invoices, checks, wire records, retainage calculations, and releases;
communications about defects, delay, completion, termination, or nonpayment; and
the Claim of Lien, service records, title evidence, notices of contest, bonds, and court papers.

Related contract doctrines also may affect recovery. For example, an owner may argue that a proposed repair would create unreasonable economic waste, while a contractor may assert an alternative theory when contract formation or change-order proof is disputed. See our discussions of the economic waste doctrine in Florida construction cases and promissory estoppel in Florida construction disputes.

Frequently asked questions

Can an owner face a lien after paying the general contractor?

Potentially. Unpaid subcontractors and suppliers may preserve lien rights even when the owner paid the contractor. The answer depends on proper payments, notices, affidavits, releases, and the contract chain. Owners should review notices before making progress and final payments.

Does punch-list work restart the 90-day period?

Not necessarily. Corrective, warranty, or insignificant work may not qualify as final furnishing. Work required by the original contract can present a different question. The safest practice is to calculate the deadline conservatively from the last date of substantial original-contract work.

Can a construction lien be removed before the dispute ends?

Yes. A lien may be satisfied or released, invalidated through a statutory or court procedure, or transferred from the property to a bond or cash deposit. A transfer clears the real estate but does not resolve the underlying claim.

Can the prevailing party recover attorney’s fees?

Florida’s construction lien statute permits a reasonable attorney’s fee for the prevailing party in a lien enforcement action. The result can depend on the claims litigated, relief obtained, settlement proposals, and procedural history.

Discussing a Florida construction lien dispute

Construction lien disputes are deadline-driven. A prompt review can identify expiring rights, defective notices, payment defenses, transfer options, and the relationship between the lien and the underlying contract claims. Gherman Legal represents businesses and individuals in South Florida real estate and construction disputes. You can review our selected case results and contact the firm to discuss a matter.

This article provides general information and is not legal advice. Construction lien rights and deadlines depend on the facts, governing documents, applicable statutes, and procedural history of each matter.

Florida Construction Liens: Rights, Deadlines, and Disputes