3 recent changes in Florida construction law

On Behalf of | May 22, 2024 | Construction Law

Construction laws regulate everything from building codes to labor practices, helping protect contractors and clients. Staying updated with the latest changes in construction laws is necessary for contractors to help ensure smooth project execution and avoid legal pitfalls. 

Florida’s dynamic construction industry demands that contractors remain vigilant about legal requirements. Changes in construction laws can impact project timelines, costs and legal obligations. That’s why it’s vital for contractors to stay informed. Recently, Florida has made the following legislative updates to maintain compliance and uphold industry standards.

Revised statute of repose 

The statute of repose is the period when one can take legal action for construction defects. Florida amended this statute, reducing the period from 10 to 7 years. The Florida SB 360 law means contractors must be more diligent in ensuring the quality and compliance of their work, as the window for legal claims has been shortened. 

Changes to local licensing requirements 

To reduce regulatory burdens and foster a more uniform regulatory environment, Florida has largely eliminated local licensing requirements for contractors. Contractors must now obtain state licenses, which supersede most local licenses, streamlining their operations and reducing administrative overhead. 

Section 489.105(3), Florida Statutes, thoroughly explains how to obtain a state license depending on the scope of each contractor’s work scope. 

Revisions to the assignment of benefits (AOB) agreements 

Assignment of benefits (AOB) agreements, which allow contractors to seek payment from insurers for work performed directly, have been significantly restricted. The new legislation aims to curb abuse and fraud associated with AOB agreements. Therefore, contractors can no longer use these agreements to pursue claims without the policyholder’s direct involvement. 

Given the complexity and implications of these legal updates, seeking reliable legal guidance can be crucial. Contractors who proactively adapt to these laws can safeguard their businesses and strengthen their reputation in an increasingly competitive market.