For over a decade, construction businesses in Florida have been required to obtain and maintain Qualified Business Licenses (QBLs). No more. As of October 1, 2009, the amendment to Chapter 489 of the Florida Statutes eliminated all traces of QBLs — called “certificates of authority” within the statutes themselves. Among other things, the amendment clears up any ongoing confusion as to whether the lack of a QBL renders a business unlicensed according to Chapters 455 and 489.

Overbroad statements in case law have left some with the incorrect impression that contractors may not include charges for overhead and profit charges when compiling their lien amounts. The confusion is due in large part to Martin v. Jack Yanks Construction Co., 650 So. 2d 120, 121-22 (Fla. 3d DCA 1995) , where the court stated that “recovery for overhead and profit as separate items are not within the purview of the lien law.” However, when viewed in the context of the entire case and of the case law to which it cites, this statement stands for a different proposition.

The purpose of the type of contract provision is to bring another document into the contract without fully setting forth the incorporated document. It places “hidden” obligations in your contract. Since these clauses are enforced by the Florida courts, the old saw “ignorance is bliss” is an invitation to disaster.

Changes in the work or claims for changes in the work are where we see the greatest volume of problems. As a practical matter, problems and changed circumstances which were not foreseen at the time the parties signed the contract will arise during every construction project. A changes clause provides the vehicle by which, without breaching the original contract, changes can be ordered to add work, correct errors in the specifications, or improve the quality of materials or methods of construction.

Acceleration of a contractor’s performance may arise in two situations. The first situation occurs when a specific order is issued under the express contract to complete the project prior to the originally scheduled completion date.

Florida Statute Section 713.31 provides that where a lien claimant has willfully exaggerated the amount of the lien, or has compiled the lien in a grossly negligent manner, such action is a complete defense to enforcement of the lien. In addition, and of critical importance to lienors, an injured party such as the owner may assert an affirmative claim of its own against the lienor for damages, costs and attorneys’ fees resulting from the fraudulent lien.

One of the more problematical contract clauses under Florida law is the payment clause in a subcontract where the general contractor seeks to avoid payment to the subcontractor or supplier until payments are received from the owner. These so-called “pay when paid” provisions in subcontracts are usually classified as either condition precedent or time of payment provisions.