Florida’s Construction Lien Law is a statutorily-created method for placing a lien on real property the fundamental purpose of which is “to protect those that have provided labor and materials for the improvement of real property.” WMS Construction, Inc. v. Palm Springs Mile Assoc., Ltd., 762 So. 2d 973 (Fla. 3d DCA 2000).
The purpose of the Construction Lien Law is to protect individuals and companies that provide labor and materials used in the improvement of real property. Construction liens “protect suppliers who furnish labor or materials to the property by assuring them of full payment.” Trytek V. Gale Industries, Inc., 3 So. 3d 1194 (Fla. 2009). By perfecting a construction lien, a materialman, subcontractor, sub-subcontractor or laborer who has improved real property can seek payment directly from the owner of the real property, even where the lienor’s contract is with someone other than the owner. Materialmen and contractors who have a direct contract with the owner are also able to perfect construction liens.
Additionally, licensed professional service providers, including architects, landscape architects, interior designers, engineers and surveyors, can have construction lien rights, even if the improvement does not occur. Further, a materialman that creates specially fabricated materials designed for a particular improvement (and not useful for other improvements) may have construction lien rights in Florida whether or not the specially fabricated materials are incorporated in the construction improvement. Those lien rights exist even where the specially fabricated materials are not delivered because the owner canceled the construction improvement or made changes that eliminated the need for the specially fabricated materials.
Once an individual or entity records a valid construction lien in the official records of the county where the real property is located, the method for enforcing the lien is accomplished by filing a construction lien foreclosure action in court. The foreclosure action forces a judicial sale of the owner’s real property and applies the sale proceeds to the debt.
However, it is important to note that the Construction Lien Law applies only to privately (non-government) owned construction improvements. Usually, government-owned construction improvements require a payment bond, which provides payment protection for materialmen, subcontractors, sub-subcontractors, and laborers.
