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Important Notice to All State Certified Contractors Homeowners' Construction Recovery Update

On Friday, March 25, 2016, Governor Rick Scott signed HB 535 (Building Code Bill) in to law. The bill is now referred to as Chapter 2016-129, Laws of Florida. The bill makes several changes to existing law as it relates to the regulation of construction contracting and the Florida Building Code. One of the more important change revises the law to include Division II contractors within the parameters of the Florida Homeowners’ Construction Recovery fund. Specifically, it revises the statutory limits on recovery payments to include Division II contracts beginning January 1, 2017, for any contract entered into after July 1, 2016. The bill limits Division II claims to $15,000 per claim with a $150,000 lifetime maximum per licensee.

Division II contractors MUST include a written statement on all residential contracts notifying the residential property owner of their rights under the Florida Homeowners’ Construction Recovery Fund.

Below is a copy of s. 489.1425, F.S., which includes the written statement that needs to be included on all residential contracts beginning on July 1, 2016.
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489.1425 Duty of contractor to notify residential property owner of recovery fund.—

(1) Each agreement or contract for repair, restoration, improvement, or construction to residential real property must contain a written statement explaining the consumer's rights under the recovery fund, except where the value of all labor and materials does not exceed $2,500. The written statement must be substantially in the following form:

FLORIDA HOMEOWNERS' CONSTRUCTION
RECOVERY FUND

PAYMENT, UP TO A LIMITED AMOUNT, MAY BE AVAILABLE FROM THE FLORIDA HOMEOWNERS' CONSTRUCTION RECOVERY FUND IF YOU LOSE MONEY ON A PROJECT PERFORMED UNDER CONTRACT, WHERE THE LOSS RESULTS FROM SPECIFIED VIOLATIONS OF FLORIDA LAW BY A LICENSED CONTRACTOR. FOR INFORMATION ABOUT THE RECOVERY FUND AND FILING A CLAIM, CONTACT THE FLORIDA CONSTRUCTION INDUSTRY LICENSING BOARD AT THE FOLLOWING TELEPHONE NUMBER AND ADDRESS: 2601 BLAIRSTONE ROAD, TALLAHASSEE, FLORIDA 32399-1039.

The statement MUST be immediately followed by the board's address and telephone number as established by board rule, which has been included above.
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Disclaimer

This document provides information about the laws affecting the Florida construction industry.  We do not give legal advice, which is the application of law to an individual’s specific circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a lawyer if you want professional assurance that our information and your interpretation of it, is appropriate to your particular situation.

 

 
 
   
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