A commercial property owner can pay a general contractor in full for a construction project — and still end up with a lien on their property from a subcontractor or supplier who was never paid. Florida’s mechanic’s lien law creates this counterintuitive risk, and understanding it is essential for any property owner undertaking construction or renovation.
What Is a Mechanic’s Lien?
A mechanic’s lien (governed by Chapter 713 of the Florida Statutes, the Construction Lien Law) gives contractors, subcontractors, laborers, and material suppliers a legal claim against a property for unpaid work or materials — essentially, security for payment tied directly to the property itself, regardless of who ultimately owes the money.
Why Paying the General Contractor Isn’t Always Enough
This is the aspect of Florida lien law that catches many property owners off guard: if a general contractor is paid in full but fails to pay its subcontractors or suppliers, those unpaid parties can still file a lien directly against the owner’s property. The owner may end up effectively paying twice — once to the general contractor, and again to satisfy a subcontractor’s lien — unless proper precautions were taken.
The Notice of Commencement
Florida law requires property owners to record a Notice of Commencement before starting construction work exceeding a certain value. This document formally establishes the start of the project for lien priority purposes and must be properly posted at the job site. Failing to record it correctly can create complications in managing lien exposure throughout the project.
Protecting Against Unwanted Liens: Lien Releases and Waivers
The primary tool for protecting against subcontractor liens is requiring lien waivers and releases as a condition of each payment — both progress payments and final payment. These come in several forms:
- Conditional waiver — effective only once payment actually clears
- Unconditional waiver — effective immediately upon signing, regardless of whether payment has cleared
Owners should require conditional waivers tied to actual payment clearing, and unconditional waivers only after confirming funds have cleared — never the reverse, which leaves the owner exposed if a payment fails.
The Notice to Owner
Subcontractors and suppliers without a direct contract with the owner (meaning they contracted with the general contractor, not the owner directly) are generally required to serve a “Notice to Owner” within 45 days of first providing labor or materials, in order to preserve their lien rights. This notice gives the owner visibility into who’s actually working on the project — critical information for managing payment and requiring appropriate lien waivers from each party.
Lien Deadlines
Florida law imposes strict deadlines for filing a lien (generally within 90 days of the claimant’s final furnishing of labor or materials) and for enforcing it through a lawsuit (generally within one year of recording the lien, absent specific circumstances that shorten this period). Missing these deadlines can extinguish an otherwise valid lien claim — relevant both to owners managing risk and to contractors protecting their right to payment.
Bonding Off a Lien
If a lien is filed and disputed, Florida law allows a property owner to “transfer” the lien from the real property to a bond — removing the cloud on title while the underlying payment dispute is resolved separately. This is often essential for owners who need to sell, refinance, or otherwise clear title while a lien dispute remains unresolved.
Managing a construction project and want to protect your property from lien exposure? Brent A. Levison, P.A. helps property owners navigate Florida’s construction lien law. Contact the firm today for a consultation.
The information in this article is provided for general informational purposes only and does not constitute legal advice. For advice specific to your situation, please consult a qualified attorney.