Common Mistakes Contractors Make When Dealing With Construction Liens

In Florida, construction liens are a strong legal option that enable contractors to ensure they get paid for the materials or labor they provide for a construction project. However, while these liens can protect your payment rights, making even a single mistake can lead to significant financial and legal problems.

Understanding the common mistakes contractors make when dealing with construction liens can ensure compliance with the law and help prevent complications or disputes. Below, our Tampa construction attorneys at Bleakley Bavol Denman & Grace share five mistakes to avoid when dealing with a construction lien in Florida.

1.    Ignoring Florida’s Lien Deadlines

One of the most common mistakes contractors make when dealing with construction liens is failing to meet crucial deadlines. Under Florida construction lien laws, some of the deadlines that must be met include:

• Notice to Owner (NTO) Deadline: Subcontractors and suppliers without a direct contract with the property owner are required to serve an NTO within 45 days of beginning work or delivering materials (Florida Statutes Section 713.06(2)(a)).
• Claim of Lien Deadline: In Florida, a lien must be filed within 90 days of the contractor’s last day of work or last delivery of materials.
• Lien Enforcement Deadline: If you wish to move forward with litigation against your client, you generally have one year from the date you record the claim of lien to do so. However, if the client formally contests the lien, the enforcement period is shortened to 60 days from when the claim of lien was recorded (Florida Statutes Section 713.08(5)).

2.    Exaggerating the Lien

Some contractors exaggerate the lien amount to punish the client. This is not allowed under Florida law. In Florida, a construction lien can only secure payments for materials, labor, or services provided directly to improve the property. It is also against the law to add an extra amount to account for the inconvenience of collecting the payment.

Claiming more than what you are owed can be considered fraud. Once a lien has been declared fraudulent, it can’t be enforced, and the property owner may even be able to sue you for damages.

3.    Failing To Keep Accurate Documentation

Construction liens are only as strong as the documentation supporting them. Don’t make the mistake of filing a lien without accurate records of;

• Contracts
• Work performed or materials supplied
• Invoices and payment records

Property owners are entitled to request certain documents from lien holders, and a lack of necessary documents or failure to provide the documents on time can lead to the lien being deemed unenforceable.

4.    Filing a Lien With Incorrect Information

Even a simple clerical error can make an otherwise valid lien invalid. Common mistakes contractors make include:

• Naming the wrong property owner
• Miscalculating the lien amount
• Listing the property’s legal description incorrectly

5. Not Consulting an Experienced Construction Attorney

Construction lien laws are complex. Filing a construction lien alone can lead to procedural errors, missed deadlines, or inaccurate filings. Consulting an experienced construction litigation attorney can ensure compliance with all legal requirements and increase the chances of your lien being enforced.

We Can Help

At Bleakley, Bavol, Denman & Grace, our Tampa construction litigation attorneys can help you navigate Florida’s strict lien laws. For help filing a construction lien, contact us today.