Florida’s Prompt Payment Act: Ensuring You Get Paid for Your Work

In the construction industry, cash flow is critical to keeping projects on track and businesses running smoothly. Unfortunately, delayed payments can create significant financial strain on contractors, subcontractors, and suppliers. To protect businesses from excessive payment delays, Florida has enacted the Prompt Payment Act (Fla. Stat. §§ 218.70-218.80 for public projects and §§ 255.0705-255.078 for state projects), which establishes deadlines for payments and penalties for noncompliance. Bleakley Bavol Denman & Grace can help you understand your rights and ensure you receive timely compensation for your work.

What Is Florida’s Prompt Payment Act?

Florida’s Prompt Payment Act applies to public construction projects and is designed to ensure that contractors, subcontractors, and suppliers are paid within a reasonable time frame. It establishes:

• Deadlines for payments by government entities.
• Penalties for late payments, including interest.
• Legal remedies for contractors and subcontractors who are not paid on time.

For private construction projects, similar protections are available under Florida’s Construction Lien Law (Fla. Stat. Ch. 713), which allows contractors to file liens against a property if they are not paid.

Payment Deadlines Under Florida’s Prompt Payment Act

Public Projects (Government-Owned Construction)

• Prime Contractors: Local governments must pay prime contractors within 25 business days after receiving a proper invoice.
• Subcontractors & Suppliers: After receiving payment, prime contractors must pay subcontractors and suppliers within 10 days.

State Projects (Florida-Owned Construction)

• Prime Contractors: State agencies must pay contractors within 30 days of receiving a proper invoice.
• Subcontractors & Suppliers: Once paid, the contractor must pay subcontractors and suppliers within 10 days.

Penalties for Late Payments

If a government entity fails to pay on time, interest starts accruing at the statutory rate. This rate fluctuates, so it’s essential to check the latest interest rates set by the Florida Chief Financial Officer.

How Contractors and Subcontractors Can Protect Themselves

1. Submit a Proper Invoice

To trigger payment deadlines, your invoice must be properly prepared and submitted. A proper invoice typically includes:

• A clear description of the work completed.
• Supporting documentation (such as timesheets or material receipts).
• Any required approvals from project managers.

2. Send a Notice of Nonpayment

If payment is delayed, contractors and subcontractors should send a Notice of Nonpayment to the responsible party. This formal notification serves as evidence that payment is overdue and may be required before legal action can be taken.

3. Demand Interest on Late Payments

Under Florida’s Prompt Payment Act, interest on late payments is mandatory, not optional. Contractors and subcontractors should calculate interest and include it in follow-up demands.

4. File a Lawsuit or Lien (If Necessary)

If payment is still not received, legal options include:

• Filing a lawsuit for breach of contract.
• Placing a construction lien on the project (for private projects).

Final Thoughts

Florida’s Prompt Payment Act provides powerful protections for contractors, subcontractors, and suppliers working on public construction projects. If you are facing nonpayment issues, taking swift action can help secure the compensation you are owed. The construction law attorneys at Bleakley Bavol Denman & Grace in Tampa can assist with enforcing your payment rights. Contact our Tampa Construction Litigation Attorneys today to discuss your case and ensure you get paid for your hard work.

Source:

leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0255/Sections/0255.078.html