Florida's Construction Lien Law (Chapter 713) is the most deadline-dense material on the Business and Finance exam. Study it as a deadline matrix: every exam question is really asking how many days, and from what trigger.
This is an independent study aid, not affiliated with DBPR, the Construction Industry Licensing Board, or Pearson VUE. It is a study summary, not legal advice.
The Notice of Commencement
The owner's first lien-law move is the Notice of Commencement. It is recorded by the owner (or the owner's agent) in the county clerk's office before commencing the improvement, is effective on filing, must be signed by the owner personally, is void if work is not actually commenced within 90 days after recording, and expires 1 year from recording unless a different date is stated.
One strategic consequence: an owner who records a payment bond with the NOC is exempt from Part I lien liability.
The NOC gates building inspections, and this is the correction to remember. Under Fla. Stat. section 713.135 (not section 713.13), when the direct contract exceeds $2,500, the permit applicant must file a certified copy of the recorded NOC, or a notarized statement that it has been filed for recording, with the issuing authority before the first inspection. No subsequent inspections are performed until it is filed.
Two corrections in one rule: the statute is 713.135, and the trigger is $2,500, not $5,000. The single exception: direct contracts to repair or replace an existing HVAC system for less than $5,000. Boundaries: a contract of exactly $2,500 does not trigger the filing; an HVAC contract of exactly $5,000 does not qualify for the exception.
The Notice to Owner: 45 days
The Notice to Owner (NTO) is served by lienors not in privity with the owner, except laborers, before commencing to furnish or not later than 45 days after commencing, and always before the owner's final payment after the contractor's affidavit. Failure to serve timely is a complete defense to lien enforcement.
Three details matter. First, sub-subcontractors and materialmen to subcontractors must also serve a copy on the contractor. Second, the statute requires service, not receipt: certified or registered mailing is effective on the mailing date when made within 40 days of first furnishing with a USPS mail log. Mailing on day 45 is timely. Third, specially fabricated materials: the 45-day clock runs from the start of actual fabrication, with no incorporation into the project required.
The claim of lien: 90 days to record, 15 days to serve
The claim of lien must be recorded within 90 days after final furnishing, in the clerk's office of each county where the property sits, and served on the owner before recording or within 15 days after. Late service renders the lien voidable only to the extent prejudice is shown, not void: the lien survives unless the owner proves actual prejudice from the delay, a tested correction.
The claim must be signed and sworn with the statutory warning. The 90-day period runs from the lienor's last day of furnishing, not the certificate of occupancy or substantial completion. Any question anchoring the 90 days to the CO is a trap.
Enforcement: 1 year, shortened by a notice of contest
The lien is enforced by suit within 1 year after recording. The owner's Notice of Contest of Lien shortens this to 60 days after service, and the lien is extinguished automatically if the lienor fails to act.
The contractor's final payment affidavit, listing paid and unpaid lienors, must be delivered at least 5 days before the contractor files suit; the contractor has no lien or right of action against the owner while in default on it. The owner's demand for a sworn statement of account must be answered by the lienor within 30 days; failure to respond, or a false or fraudulent statement, deprives the lienor of the lien.
Transfer of lien to security: the famous correction
The lien transfer to security formula is the most famous correction in Florida prep lore. It is NOT 110% of the lien amount. Under Fla. Stat. section 713.24(1), the transfer amount is the lien amount plus 3 years' interest at the legal rate plus the greater of $1,000 or 25% of the lien amount. Memorize the structure: amount, then interest, then the greater-of add-on.
Payment bonds and prompt payment
Payment bonds on private work have parallel deadlines. A claimant's notice of nonpayment must be written, under oath, served on the contractor with a copy to the surety, within 90 days after final furnishing. Suit on the bond is due within 1 year after last furnishing, or 60 days after a notice of contest of claim against the bond is recorded.
Prompt payment runs on three separate tracks, and the exam's favorite error is mixing them:
- Private work (section 715.12): no statutory day-count deadline; payment is due per the contract terms. Late amounts bear interest at the section 55.03 rate plus 12% per annum from the 14th day after due. Any question assigning a 20-day deadline to private owners is wrong.
- Local government (section 218.735): invoices due 25 business days after stamping if agent approval is required, 20 if not. Rejection in writing within 20 business days; corrected invoice paid or rejected within 10 business days of re-stamping. Late interest 1% per month or the contract rate, whichever is greater.
- State public entity (section 255.073): the undisputed portion paid by the contract date or within 20 business days after receipt, whichever is earlier. The contractor pays subs and suppliers within 10 days, subs pay their subs within 7 days. Late interest 2% per month.
Public retainage is capped at a flat 5% per progress payment and does not apply to contracts of $200,000 or less. The old 10% rule was repealed effective October 1, 2020.
The matrix to memorize
- NTO: 45 days after commencing (mailing on day 45 timely)
- NOC: void if no work within 90 days; expires at 1 year
- NOC copy to issuing authority: contract exceeding $2,500, before the first inspection (section 713.135; HVAC exception under $5,000)
- Claim of lien recorded: 90 days after final furnishing; served on owner within 15 days after recording
- Enforcement suit: 1 year after recording; 60 days after a notice of contest
- Contractor's final payment affidavit: at least 5 days before suit
- Sworn statement of account: answered within 30 days; no response or a false statement kills the lien- Transfer to security: amount + 3 years' interest + the greater of $1,000 or 25%
- Bond notice of nonpayment: 90 days after final furnishing; suit within 1 year (60 days after a notice of contest)
- Prompt pay: private has no day-count (55.03 + 12% from day 14); local government 25/20 business days, 1% per month; state 20 business days, 2% per month; public retainage 5%, not on contracts of $200,000 or less
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