Understanding Contingent Payment Clauses in Florida Construction Contracts

1. Contingent Payment Clauses (CPC) are common in construction agreements, especially subcontracts.

2. Florida law regarding CPC is complex and varies from other states.

3. To enforce a CPC in Florida, specific and express terms are required in the construction agreement.

4. Courts routinely strike down vague language in CPC, so it’s important to clearly outline the terms in the agreement. 1. Contractual Performance Certainty (CPC) can be affected by other provisions in agreements, making it unenforceable.

2. Contractors, subcontractors, developers, and owners all need to understand CPC to navigate potential disputes.

3. Funding issues can impact downstream payments, especially when parties rely on CPC.

4. Change orders often lead to payment disputes, even when CPC is in place.

5. Florida law on CPC can protect contractors and subcontractors, and help developers and owners avoid payment disputes.

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