Board-Certified In Construction Law By The Florida Bar

Construction disputes rampant with large-scale Florida project

| Apr 9, 2021 | Construction Liens

Major construction projects are common throughout Florida and while these are beneficial to the community and the economy, they are not without their complications. Companies and contractors will frequently do their work based on contractual obligations and the specifications laid out by developers. They subsequently expect to be compensated for what they have done. If they are not, there can be extensive legal disagreements. Often, these can be addressed via negotiation and without going to court. Still, it is important for everyone involved to have legal protection from the start and to understand the nuance with recovering what is owed.

Major project in Tampa faces liens and disagreements

The developers who are overseeing a large development in Tampa are dealing with double-digit liens and other problems. They are all based on labor contract issues and unpaid construction costs. More than $30 million is reportedly owed. Contractors did multiple levels of work on the project including installing water sprinklers, cleaning windows, roof work and masonry. Some of the liens were changed to surety bonds to deal with the disputes and not risk the property itself.

Most of the liens are on a high-profile hotel. Although most of the debt for nearly $349 million was paid for work done on the hotel, just over $29 million was not. More than $7 million was changed to surety bonds. It is important to remember that this will simply protect the property from being used as collateral and does not clear the debt. There are certain rules in Florida when construction liens are filed – it must be done within 90 days of when the work was completed. The development is worth $3.5 billion and has commercial and residential properties.

Navigating complex construction disputes may require legal assistance

Since much of what was owed was paid, this case is not one in which there appears to be contentious disagreement. Still, liens and surety bonds are strategies that developers and contractors should understand when disputes occur. This case may be relatively easy to negotiate, but not all construction cases are. For help with complex construction law situations, it is wise to have legal guidance. That could involve negotiating or it may require going to court. For advice from every perspective, a consultation can yield information and assistance with how to move forward.

 

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