can I send and NTO even after the 45 days limit if the final payment to the GC is not done yet.
1 reply
Nov 13, 2019
Florida's Notice to Owner deadline is very strict, and failure to send an NTO on time will generally result in the loss of lien rights. As mentioned here on the Levelset FAQs, preliminary notice must be sent within 45 days of first furnishing labor or materials to the project.
Regarding the final payment to GC language - note that that's an additional requirement, within the 45-day window. Meaning, while a Notice to Owner must typically only be made within 45 days of first furnishing, it also must be given before the GC receives payment - even if that payment is made before 45 days pass.
Recovery options outside of the Florida mechanics lien process
Sending Notice to Owner is important, but failing to send a timely preliminary notice isn't the end of the world. There are options outside of the mechanics lien process that can help to recover payment. Before diving into some of those options, here's a resource that should be helpful on that front: Can’t File a Lien? Here Are Some Other Options For Recovery.
Invoice reminders and payment demand letters can push for payment
Something as simple as an invoice reminder can help to remind a customer of what they owe and push them to make payment. The reminder acts as a little nudge, and sometimes that's all it takes to get paid what you're owed.
Escalating things a bit further with a payment demand letter can be a productive option, too. A demand letter is a little more formal and forceful than a mere invoice reminder, and including specific threats of legal action if payment isn't made can be enough to get payment talks going in the right direction.
Breach of contract
If payment is owed and has not been made according to the contract, then there's a chance that the nonpaying customer has breached their contract. If that's the case, then a breach of contract action may be on the table to force a customer to pay what's owed. And, as mentioned above, the threat of proceeding with a breach of contract claim may be enough to get paid, all by itself.
Florida's prompt payment laws
Note also that Florida has prompt payment laws that require contractors to promptly pay their subcontractors. And, any time a contractor fails to make payment, as required, penalties can come into play - like interest payments, costs, and fees. Just like with any other payment recovery tool, threatening to pursue a claim under Florida's prompt payment laws can be effective to recover payment. More on Florida's prompt payment laws here: Florida Prompt Payment Guide and FAQs.
Reaching out to a Florida Construction Payment Expert could help
Finally, it may also be helpful to reach out to a local Florida Construction Payment Expert for additional insight on your situation. They may be able to review your situation and relevant documentation and advise on how best to proceed.