Is Prompt Payment a Requirement? A Mistake Can Cost You.

The following article was written by Miami Construction Lawyer Alex Barthet and appeared first on TheLienZone. It was re-posted with permission. For more information about Alex and his firm, please visit and

See below for some great information we found on prompt payment. Do not ever hesitate to call us here at Licenses, Etc.! If we don’t have the information, we can find it for you!

There is a little known but powerful tool for subcontractors and suppliers.  It allows them to seek immediate payment on undisputed contract obligations due on public projects from contractors who have already been paid.

Prompt Payment on Public Jobs

While a contractor may find it preferable for cash flow reasons to simply keep a subcontractor waiting, even after receiving payment for its portion of the work from the municipality or public entity, it is neither legal nor smart.  Contractors would do well to heed the rulings by Florida’s courts which have made clear that ignoring the prompt payment statute comes with the penalty of paying accrued interest, attorney’s fees and costs. A subcontractor is entitled to various immediate remedies for rapid recovery of any undisputed contract obligations.

Prompt Payment on Private Jobs.

And it isn’t just on public jobs that subcontractors have this level of protection.  Other Florida statutes provide similar guidelines for contractors performing private work.  Florida Statute §713.346 states in pertinent part:

Any person who receives payment for constructing or altering permanent improvements to real property shall pay, in accordance with the contract terms, the undisputed contract obligations for labor, services or materials provided on account of such improvements.

Ever mindful of the uneven bargaining position in which most subcontractors and suppliers find themselves, the legislature sought to level the playing field.

Follow the payment dollars; some of them may be yours.

At Licenses, Etc., we offer a fast contractor license application process for our contractor clients. Contact us about getting your Florida contractor’s license by clicking here or calling 239-777-1028.

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