With over 550 thousand active workers, almost 7% average annual increase in jobs, and years of consecutive overall growth, the construction industry remains a vital and vibrant area of Florida’s economy. One of the important factors contributing to economic viability and its growth is the issue of prompt payments. Individual players in the construction services business – contractors, subcontractors, and material suppliers – must be able to operate with an assumption that they will be paid in a timely and consistent manner for the services they provide time. To ensure legal protection for construction companies, and to provide a framework to resolve disputes related to non-payments or late payments, Florida legislators adopted a set of statutes known collectively as the Florida Prompt Payment Law.
If you are a contractor in the construction industry in Florida, having a solid understanding of the prompt payment statutes is key. Knowing the basic tenets will help you apply them in real-life situations, can protect your cash flow, and your business if you’re struggling to collect payment from one or more of your clients.
In this article, you’ll find a practical summary of the Florida Prompt Payment Law that will help you to exercise your right and ensure timely payment.
Florida Prompt Payment on Private Construction Contracts
Florida’s statutes state that payment for construction services must be made “at the time and under the terms specified in the contract”. Importantly, in contrast to similar laws adopted by other states, Florida prompt payment statutes do not specify arbitrary deadlines for progress payments, in case these are not specifically mentioned in the contract. Contractors, then, should make sure that such deadlines and payment dates are stated explicitly in the agreement they make with the property owner before they start to provide their services. By doing so, they will secure regular progress payments and cash flow that will help them maintain the continuity of the construction project.
The Prompt Payment Law does, however, specify the circumstances under which the owner is obliged to promptly provide payment to the contractor. The following three basic conditions must be met:
- the contractor has provided the owner with the service in accordance with the terms of the construction contract
- the contractor has provided the owner with a notice, or written request for payment
- the contractor has served the owner with an affidavit, that is, a written form, signed in front of a notary, stating that the contractor has finished all the contractual work on the project
Upon receiving the notice for payment and the affidavit, the owner has 14 days to return the notice if they deem the work done to be incomplete or deficient, and request corrections. However, if the owner doesn’t return the notice, nor make proper and prompt payment within 14 days, they will be required to pay interest on the amount due. The interest rate is set quarterly by the Chief Financial Officer and as of January 2019, it amounts to 6.33% annually.
Bonafide Disputes & Retainage
The Prompt Payment Law also refers to Bonafide disputes and Retainage they may affect your rights to receive prompt payment. Bonafide disputes refer to the owner’s right to withhold, in good faith, a part of the payment due if a contractor hasn’t fulfilled a certain contractual obligation or has provided deficient work. Retainage is a portion of each progress payment that the owner can rightfully withhold – or retain – until the project is substantially completed. The retained amount must, however, be paid if one of the following events takes place:
- An architect or engineer issues a certificate that the project is substantially completed
- A certificate of occupancy is issued
- The owner or a tenant of the owner takes possession
If the above occur, the owner must provide the contractor with a punch list, or a list of items that are yet to be completed, within the time period specified in the contract. If the contract doesn’t contain a clause that stipulates such period, the Prompt Payment Law provides for the period of 15 days starting from the date any of the three events listed above occurs. In case the time to produce the punch list ends and the owner fails to do so, the contractor will be entitled to receive any retained payments as well as to interest on the amount due. The interest will start to accumulate after 14 days.
If You Have a Valid Complaint
A violation of any of the provisions of the Prompt Payment Law discussed may force a contractor to file a complaint with the court against the owner. If you are a contractor in Florida and are facing such a situation or a similar one, you may still be unsure what action you should take. In such a case, it is best to consult an attorney experienced in handling issues related to payment obligations and liens.
The attorneys at National Lien & Bond have an extensive understanding of mechanics lien laws across the U.S. as well as ample experience and a proven record of successfully resolved cases. We work closely with our clients, focusing on their needs, and providing guidance tailored to their situation and personal goals.
Contact us today and let’s work out a solution to your legal issue related to prompt payment or any other mechanics lien issue.
Need to learn how prompt payment acts work in other states? Check out our Lien and Notice Deadline Guide
This blog is for educational purposes only and not intended for legal advice.
Frequently Asked Questions
What is the Florida Prompt Payment Act for private projects?
Florida's Prompt Payment Act for private projects (Fla. Stat. § 715.12) establishes statutory payment deadlines that owners and primes must meet on private construction projects — and provides unpaid contractors with strong remedies when those deadlines are missed. Owners must pay undisputed invoices to first-tier contractors within 14 DAYS. Primes must pass through payment to subs within 10 DAYS of receipt. Late payment triggers 18% per annum interest plus attorney's fees. Florida's private prompt payment statute is among the strongest claimant-friendly laws in the U.S.
What is the Florida prompt payment deadline for owners on private projects?
Under Fla. Stat. § 715.12(2), owners on private construction projects must pay undisputed invoices to first-tier contractors within 14 DAYS after receipt of a complete payment request with proper supporting documentation. If the owner has a good-faith dispute, the owner may withhold the disputed amount but must notify the contractor in writing of the dispute within 14 days specifying the basis. The 14-day window is significantly shorter than California's 30 days or most other states' 30-45 days — making Florida exceptionally contractor-friendly on timing.
How does the Florida Prompt Payment Act protect subcontractors?
Under Fla. Stat. § 715.12(8), prime contractors must pass through payment to first-tier subcontractors within 10 DAYS of receipt of payment from the owner. This is one of the strongest sub-tier protections in U.S. construction law. The 10-day pass-through obligation cuts off the common 'pay-when-paid' delay tactic — once the prime receives owner payment, the sub-tier clock starts immediately. Failure to pass through within 10 days triggers the same 18% interest and fee-shifting.
How much penalty interest does Florida impose on late private-project payments?
Under Fla. Stat. § 715.12(11), statutory interest of 18% per annum accrues on amounts withheld past the prompt-payment deadlines on private construction projects. This rate is dramatically higher than Florida's legal interest rate that would otherwise apply. Penalty interest is recoverable in addition to the principal owed, plus reasonable attorney's fees. The combined remedy makes late payment commercially painful and creates strong settlement leverage for unpaid Florida contractors.
Can I recover attorney's fees under the Florida Prompt Payment Act?
Yes — Fla. Stat. § 715.12(11) provides that the prevailing party in any action to recover prompt-payment penalties is entitled to reasonable attorney's fees and costs. This is one of the strongest fee-shifting provisions in Florida construction law and creates a major economic incentive for owners and primes to pay promptly rather than dispute and litigate. The fee-shifting cuts both ways: a contractor that brings a frivolous claim may be required to pay the owner's fees. Documentation of the underlying payment timeline is critical.
How does the Florida Prompt Payment Act interact with mechanics lien claims?
Prompt-payment claims under Fla. Stat. § 715.12 and Florida mechanics liens under Fla. Stat. § 713 are SEPARATE remedies that can be pursued in parallel. A mechanics lien encumbers the property until paid or foreclosed; a prompt-payment claim seeks statutory penalty interest and attorney's fees on top of the underlying debt. National Lien & Bond pursues both remedies in parallel where applicable — the lien creates the security for the principal debt, the prompt-payment statute adds penalty interest and fee-shifting, and the combined leverage typically produces faster settlement.
How does National Lien & Bond help recover Florida Prompt Payment penalties?
National Lien & Bond pursues Florida Prompt Payment Act penalties as part of a complete construction-payment recovery strategy. For Illinois-based engagements, Hal Emalfarb's firm at Emalfarb Swan and Bain handles strategic coordination. For Florida-jurisdiction matters, NLB connects unpaid contractors with vetted Florida construction-payment attorneys who pursue § 715.12 penalties, mechanics lien enforcement under Fla. Stat. § 713, and Florida Public Construction Bond claims as integrated remedies. The fee-shifting under § 715.12(11) makes many Florida prompt-payment claims economically viable that would not justify litigation under the American Rule. Contact NLB for a free initial consultation.