- In Florida, lienors may not waive lien rights in advance of performing work. 713.20 (2). Any waiver of the right to claim of lien made in advance is unenforceable.
- A pay-if-paid clause does not waive lien rights.
- A party may not require a release on a form other than one of the statutory forms; however, if a different form is used, its terms are enforceable.
- A lienor may condition its waiver and release of lien upon payment of an amount to be tendered to him. Under these circumstances, the Owner can withhold the outstanding sum(s) due the lienor from the Contractor until the lienor has been paid.
- “Paid if Paid” is enforced if explicit.
- “Pay when Paid” suggests time for payment.
- Pay-if/when-paid provisions must unequivocally express the party's intent to establish a condition precedent to payment in order to be enforceable.
Retainage Provisions
Public
- FLA. STAT. ANN. § 255.052. With regard to any contract for construction services, a public entity may withhold from each progress payment made to the contractor an amount not exceeding 10 percent of the payment as retainage until 50-percent completion of such services. After 50 percent completion, as defined by statute, the contractor may elect to withhold retainage from the subcontractors at a rate higher than 5 percent based on the subcontractor's past performance, the likelihood that such performance will continue, and other available safeguards. With the state's approval, a contractor may substitute securities in lieu of retainage. FLA. STAT. ANN. § 255.052.
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