Tag: substantial-completion
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Florida’s New Laws for Construction Projects: Retainage and Prompt Pay Requirements
– Senate Bill 346 (SB 346) was signed into law by Florida Governor Ron DeSantis on May 25, 2023. – The bill, effective on July 1, 2023, makes changes to prompt payment and retainage requirements on contracts between state and local governments and construction contractors in Florida. – Changes include the creation of punch lists,…
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Understanding Payment Terms in Construction Contracts: What You Need to Know as a High School Student
1. Pay-if-paid and pay-when-paid provisions are heavily negotiated in construction contracts and can significantly impact payment obligations between contractors, subcontractors, and suppliers. 2. Pay-if-paid clauses can shift the payment obligation from the contractor to the subcontractor, making it contingent on the contractor receiving payment from the owner. 3. Pay-when-paid clauses may delay payment to the…
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Understanding Construction Liens in Simple Terms
1) Any individual, corporation, or business entity who has provided labor, services, or materials to improve real property in Florida and has complied with the state’s construction lien law may file a Claim of Lien. This serves as security for payment. 2) A Claim of Lien must include the name and address of the person…
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“Understanding the Importance of Liquidated Damages in Construction”
1. An owner can reinforce the completion date of a construction project through a liquidated damages provision, which includes a daily monetary rate for each day of delay. 2. The provision is designed to reasonably compensate the owner for delay to the completion date, and is easier to prove than actual damages. 3. The provision…