Florida Aims to Standardize Construction Lien Waivers

Florida lawmakers recently introduced a bill that could broadly impact Florida construction payment practices. If passed into law as drafted, Senate Bill 908 would require Florida contractors to use the standard construction lien waivers prescribed under Section 713.20, Florida Statutes. Additionally, going forward, noncompliant lien waivers may no longer be enforceable. The bill could come into effect as early as July if enacted.

In Florida, contractors and parties furnishing work and materials for a construction project are typically required to submit lien waivers in exchange for progress and final payments. These waivers usually state that the contractor waives its right to claim a lien for work or materials provided through a specific date. For example, an electrical subcontractor might give a lien waiver to a general contractor stating that it is waiving its right to claim a lien for electrical work performed through the date of its most recent application for payment.