Florida 2025 Regular Session

Florida House Bill H1295 Compare Versions

Only one version of the bill is available at this time.

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3	3	HB 1295 2025
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8	8	hb1295-00
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10	10	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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14	14	A bill to be entitled 1
15	15	An act relating to construction defects; amending ss. 2
16	16	558.001 and 558.002, F.S.; conforming provisions to 3
17	17	changes made by the act; amending s. 558.003, F.S.; 4
18	18	providing that deviations from the initial plans and 5
19	19	specifications for construction projects are not 6
20	20	considered construction defects; amending s. 558.004, 7
21	21	F.S.; revising the list of parties to be served 8
22	22	written notice; revising the list of parties to be 9
23	23	served written notice; requiring such claimants to 10
24	24	describe with specificity the location of the kn own 11
25	25	damages from the alleged defective conditions; 12
26	26	revising which parts of the property the parties 13
27	27	served may inspect; revising the persons to whom the 14
28	28	parties served may serve a notice of claim; requiring 15
29	29	such claimants who accept an offer to repair an 16
30	30	alleged construction defect to provide the offeror 17
31	31	reasonable access to the claimant's property during a 18
32	32	specified timeframe to perform the repair; providing 19
33	33	that such claimants may proceed with an action against 20
34	34	an offeror without further notice if the pay ment or 21
35	35	repairs do not occur within the agreed -upon timetable; 22
36	36	providing exceptions; prohibiting a claimant from 23
37	37	proceeding with an action against an offeror if the 24
38	38	offeror makes payment or completes the repairs within 25
39	39
40	40	HB 1295 2025
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47	47	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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49	49
50	50
51	51	the agreed-upon timetable in the acce pted settlement 26
52	52	offer; providing that if such persons served by such 27
53	53	claimants obtain the required building permits and 28
54	54	certificate of occupancy, and the local government 29
55	55	approves the plans, the construction project passes 30
56	56	all required inspections under th e Florida Building 31
57	57	Code; providing applicability; reenacting and amending 32
58	58	s. 558.005, F.S.; requiring claimants representing 33
59	59	more than 20 parcels and any parties served with a 34
60	60	notice of claim alleging a construction defect to 35
61	61	agree to preaction mediation i n writing; requiring 36
62	62	such parties served to deposit sufficient funds in an 37
63	63	escrow account to be managed by an escrow agent for a 38
64	64	specified purpose; providing when funds may be 39
65	65	distributed; requiring such parties to contract with a 40
66	66	licensed engineer or cons truction management firm to 41
67	67	certify the status of the completion of each agreed -42
68	68	upon defective condition and damage; providing that 43
69	69	any remaining funds in the escrow account be released 44
70	70	back to the payor; providing an effective date. 45
71	71	46
72	72	Be It Enacted by the Legislature of the State of Florida: 47
73	73	48
74	74	Section 1. Section 558.001, Florida Statutes, is amended 49
75	75	to read: 50
76	76
77	77	HB 1295 2025
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82	82	hb1295-00
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84	84	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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88	88	558.001 Legislative findings and declaration. —The 51
89	89	Legislature finds that it is beneficial to have an alternative 52
90	90	method to resolve constructio n disputes that would reduce the 53
91	91	need for litigation as well as protect the rights of property 54
92	92	owners. An effective alternative dispute resolution mechanism in 55
93	93	certain construction defect matters should involve the claimant 56
94	94	filing a notice of claim with th e developer, contractor, 57
95	95	subcontractor, supplier, or design professional that the 58
96	96	claimant asserts is responsible for the defect, and should 59
97	97	provide the developer, contractor, subcontractor, supplier, or 60
98	98	design professional, and the insurer of the developer, 61
99	99	contractor, subcontractor, supplier, or design professional, 62
100	100	with an opportunity to resolve the claim through confidential 63
101	101	settlement negotiations without resort to further legal process. 64
102	102	Section 2. Subsection (3) of section 558.002, Florida 65
103	103	Statutes, is amended to read: 66
104	104	558.002 Definitions. —As used in this chapter, the term: 67
105	105	(3) "Claimant" means a property owner, including a 68
106	106	subsequent purchaser or association, who asserts a claim for 69
107	107	damages against a developer, contractor, subcontractor, 70
108	108	supplier, or design professional concerning a construction 71
109	109	defect or a subsequent owner who asserts a claim for 72
110	110	indemnification for such damages. The term does not include a 73
111	111	developer, contractor, subcontractor, supplier, or design 74
112	112	professional. 75
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121	121	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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125	125	Section 3. Section 558.003, Florida Statutes, is amended 76
126	126	to read: 77
127	127	558.003 Action; compliance. —A claimant may not file an 78
128	128	action subject to this chapter without first complying with the 79
129	129	requirements of this chapter. If a claimant files an action 80
130	130	alleging a construct ion defect without first complying with the 81
131	131	requirements of this chapter, on timely motion by a party to the 82
132	132	action the court shall stay the action, without prejudice, and 83
133	133	the action may not proceed until the claimant has complied with 84
134	134	such requirements. T he notice requirement is not intended to 85
135	135	interfere with an owner's ability to complete a project that has 86
136	136	not been substantially completed. The notice is not required for 87
137	137	a project that has not reached the stage of completion of the 88
138	138	building or improvement . A deviation from initial plans and 89
139	139	specifications, including, but not limited to, the substitution 90
140	140	of products or components, is not considered a construction 91
141	141	defect as defined in s. 558.002. 92
142	142	Section 4. Subsections (1) through (4) and subsection (8) 93
143	143	of section 558.004, Florida Statutes, are amended, and 94
144	144	subsection (16) is added to that section, to read: 95
145	145	558.004 Notice and opportunity to repair. — 96
146	146	(1)(a) In actions brought alleging a construction defect, 97
147	147	the claimant must shall, at least 60 days bef ore filing any 98
148	148	action, or at least 120 days before filing an action involving 99
149	149	an association representing more than 20 parcels, serve written 100
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158	158	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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160	160
161	161
162	162	notice of claim on the developer, contractor, subcontractor, 101
163	163	supplier, or design professional, as applicable, whic h notice 102
164	164	must shall refer to this chapter. If the construction defect 103
165	165	claim arises from work performed under a contract, the written 104
166	166	notice of claim must be served on the person with whom the 105
167	167	claimant contracted. 106
168	168	(b) The notice of claim must describe in reasonable detail 107
169	169	the nature of each alleged construction defect and, if known, 108
170	170	the damage or loss resulting from the defect. Based upon at 109
171	171	least a visual inspection by the claimant or its agents, the 110
172	172	notice of claim must identify the location of each alle ged 111
173	173	construction defect sufficiently to enable the responding 112
174	174	parties to locate the alleged defect without undue burden. For 113
175	175	associations representing more than 20 parcels, the notice of 114
176	176	claim must describe with specificity the locations of and known 115
177	177	damages from the alleged defective condition, including, but not 116
178	178	limited to, those floors and units in the buildings where the 117
179	179	defective condition and damages are located. The claimant has no 118
180	180	obligation to perform destructive or other testing for purposes 119
181	181	of this notice. 120
182	182	(c) The claimant must attempt shall endeavor to serve the 121
183	183	notice of claim within 15 days after discovery of an alleged 122
184	184	defect, but the failure to serve notice of claim within 15 days 123
185	185	does not bar the filing of an action, subject to s. 558.003. 124
186	186	This subsection does not preclude a claimant from filing an 125
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195	195	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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197	197
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199	199	action sooner than 60 days, or 120 days as applicable, after 126
200	200	service of written notice as expressly provided in subsection 127
201	201	(6), subsection (7), or subsection (8). 128
202	202	(d) A notice of claim served pursuant to this chapter does 129
203	203	shall not toll any statute of repose period under chapter 95. 130
204	204	(2) Within 30 days after service of the notice of claim, 131
205	205	or within 50 days after service of the notice of claim involving 132
206	206	an association representing more than 20 parcels, the person 133
207	207	served with the notice of claim under subsection (1) is entitled 134
208	208	to perform a reasonable inspection of the property and common 135
209	209	elements, or of each unit subject to the claim to assess each 136
210	210	alleged construction defect. An association's right to access 137
211	211	property for either maintenance or repair includes the authority 138
212	212	to grant access for the inspection. The claimant shall provide 139
213	213	the person served with notice under subsection (1) and such 140
214	214	person's contractors o r agents reasonable access to the property 141
215	215	during normal working hours to inspect the property to determine 142
216	216	the nature and cause of each alleged construction defect and the 143
217	217	nature and extent of any repairs , remediation, or replacements 144
218	218	necessary to remedy each defect. The person served with notice 145
219	219	under subsection (1) shall reasonably coordinate the timing and 146
220	220	manner of any and all inspections with the claimant to minimize 147
221	221	the number of inspections. The inspection may include 148
222	222	destructive testing by mutual a greement under the following 149
223	223	reasonable terms and conditions: 150
224	224
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232	232	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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236	236	(a) If the person served with notice under subsection (1) 151
237	237	determines that destructive testing is necessary to determine 152
238	238	the nature and cause of the alleged defects, such person must 153
239	239	shall notify the claimant in writing. 154
240	240	(b) The notice must shall describe the destructive testing 155
241	241	to be performed, the person selected to do the testing, the 156
242	242	estimated anticipated damage and repairs to or restoration of 157
243	243	the property resulting from the testing, the estimated amount of 158
244	244	time necessary for the testing and to complete the repairs or 159
245	245	restoration, and the financial responsibility offered for 160
246	246	covering the costs of repairs or restoration. 161
247	247	(c) If the claimant promptly objects to the person 162
248	248	selected to perform the destructive testing, the person served 163
249	249	with notice under subsection (1) must shall provide the claimant 164
250	250	with a list of three qualified persons from which the claimant 165
251	251	may select one such person to perform the testing. The person 166
252	252	selected to perform the testing shall operate as an agent or 167
253	253	subcontractor of the person served with notice under subsection 168
254	254	(1) and shall communicate with, submit any reports to, and be 169
255	255	solely responsible to the person served with notice. 170
256	256	(d) The testing must shall be done at a mutually agreeable 171
257	257	time. 172
258	258	(e) The claimant or a representative of the claimant may 173
259	259	be present to observe the destructive testing. 174
260	260	(f) The destructive testing may shall not render the 175
261	261
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269	269	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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273	273	property uninhabitable. 176
274	274	(g) There are shall be no construction lien rights under 177
275	275	part I of chapter 713 for the destructive testing caused by a 178
276	276	person served with notice under subsection (1) or for restoring 179
277	277	the area destructively tested to the condition existing before 180
278	278	prior to testing, except to the extent the owner contracts for 181
279	279	the destructive testing or restoration. 182
280	280	183
281	281	If the claimant refuses to agree and thereafter permit 184
282	282	reasonable destructive testing, the claimant has shall have no 185
283	283	claim for damages which could have been av oided or mitigated had 186
284	284	destructive testing been allowed when requested and had a 187
285	285	feasible remedy been promptly implemented. 188
286	286	(3) Within 10 days after service of the notice of claim, 189
287	287	or within 30 days after service of the notice of claim involving 190
288	288	an association representing more than 20 parcels, the person 191
289	289	served with notice under subsection (1) may serve a copy of the 192
290	290	notice of claim to each developer, contractor, subcontractor, 193
291	291	supplier, or design professional whom it reasonably believes is 194
292	292	responsible for each defect specified in the notice of claim and 195
293	293	must shall note the specific defect for which it believes the 196
294	294	particular developer, contractor, subcontractor, supplier, or 197
295	295	design professional is responsible. The notice described in this 198
296	296	subsection may not be construed as an admission of any kind. 199
297	297	Each such developer, contractor, subcontractor, supplier, and 200
298	298
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306	306	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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310	310	design professional may inspect the property as provided in 201
311	311	subsection (2). 202
312	312	(4) Within 15 days after service of a copy of the notice 203
313	313	of claim pursuant to subsection (3), or within 30 days after 204
314	314	service of the copy of the notice of claim involving an 205
315	315	association representing more than 20 parcels, the developer, 206
316	316	contractor, subcontractor, supplier, or design professional must 207
317	317	serve a written response to the person who served a copy of the 208
318	318	notice of claim. The written response must include a report, if 209
319	319	any, of the scope of any inspection of the property and the 210
320	320	findings and results of the inspection. The written response 211
321	321	must include one or more of the offers or statements specified 212
322	322	in paragraphs (5)(a) -(e), as chosen by the responding developer, 213
323	323	contractor, subcontractor, supplier, or design professional, 214
324	324	with all of the information required for that offer or 215
325	325	statement. 216
326	326	(8)(a) If the claimant timely a nd properly accepts the 217
327	327	offer to repair an alleged construction defect, the claimant 218
328	328	must shall provide the offeror and the offeror's agents 219
329	329	reasonable access to the claimant's property during normal 220
330	330	working hours to perform the repair by the agreed -upon timetable 221
331	331	as stated in the offer. If the offeror does not make the payment 222
332	332	or repair the defect within the agreed time and in the agreed 223
333	333	manner, except for reasonable delays beyond the control of the 224
334	334	offeror, including, but not limited to, weather condition s, 225
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343	343	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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347	347	delivery of materials, claimant's actions, or issuance of any 226
348	348	required permits, the claimant may, without further notice, 227
349	349	proceed with an action against the offeror based upon the claim 228
350	350	in the notice of claim. If the offeror makes payment or repairs 229
351	351	the defect within the agreed time and in the agreed manner, the 230
352	352	claimant is barred from proceeding with an action for the claim 231
353	353	described in the notice of claim or as otherwise provided in the 232
354	354	accepted settlement offer. 233
355	355	(b) For associations representing mor e than 20 parcels, if 234
356	356	the claimant timely and properly accepts the offer to repair an 235
357	357	alleged construction defect pursuant to paragraph (a), the 236
358	358	claimant must provide the offeror and the offeror's agents, 237
359	359	including the developer, contractor, subcontractor, supplier, or 238
360	360	design professional, reasonable access to the claimant's 239
361	361	property, including common elements, association property, and 240
362	362	individual units, during normal working hours to perform the 241
363	363	repair according to the agreed -upon timetable as stated in th e 242
364	364	offer. If the offeror does not make the payment or repair the 243
365	365	defect within the agreed time and in the agreed manner, except 244
366	366	for reasonable delays beyond the control of the offeror, 245
367	367	including, but not limited to, weather conditions, delivery of 246
368	368	materials, claimant's actions, or issuance of any required 247
369	369	permits, the claimant may, without further notice, proceed with 248
370	370	an action against the offeror based upon the claim in the notice 249
371	371	of claim. If the offeror makes payment or repairs the defect 250
372	372
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380	380	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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384	384	within the agreed-upon timetable and in the agreed manner, the 251
385	385	claimant is barred from proceeding with an action for the claim 252
386	386	described in the notice of claim or as otherwise provided in the 253
387	387	accepted settlement offer. 254
388	388	(16) If the person served with the notice of claim in 255
389	389	subsection (1) obtains the required building permits and 256
390	390	certificate of occupancy, and a local government or public 257
391	391	agency with authority to enforce the Florida Building Code 258
392	392	approves the plans, the construction project passes all required 259
393	393	inspections under the Florida Building Code. If there is no 260
394	394	personal injury or damage to property other than the property 261
395	395	that is the subject of the permits, plans, and inspections, this 262
396	396	chapter does not apply unless the person or party knew or should 263
397	397	have known that the material violation existed. 264
398	398	Section 5. Subsection (4) of section 558.005, Florida 265
399	399	Statutes, is amended, subsections (7), (8), and (9) are added to 266
400	400	that section, and subsection (6) of that section is reenacted, 267
401	401	to read: 268
402	402	558.005 Contract provisions; application.— 269
403	403	(4) At any time after the scope of the alleged defects has 270
404	404	been determined and sufficiently described by the claimant and 271
405	405	receipt of a notice of claim is acknowledged by the person to 272
406	406	whom notice is served or otherwise must be served under s. 273
407	407	558.004(1), a claimant and such person the person to whom notice 274
408	408	is served or otherwise must be served under s. 558.004(1) may 275
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417	417	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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421	421	agree in writing to preaction mediation or otherwise alter the 276
422	422	procedure for the notice of claim process described in this 277
423	423	chapter. However, for associations that represent more than 20 278
424	424	parcels, if the scope of the alleged defects has been determined 279
425	425	and sufficiently described by the claimant and receipt of a 280
426	426	notice of claim is acknowledged by the person to whom notice is 281
427	427	served under s. 558.004(1), a claimant and such person must 282
428	428	agree in writing to preaction mediation . 283
429	429	(6) Notwithstanding s. 558.003, unless the parties agree 284
430	430	that this chapter does not apply, after October 1, 2009, any 285
431	431	written contract for improvement of real property entered into 286
432	432	between an owner and a contractor, or between an owner and a 287
433	433	design professional, must contain substantially the following 288
434	434	notice: "ANY CLAIMS FOR CONSTRUCTION DEFECTS ARE SUBJECT TO THE 289
435	435	NOTICE AND CURE PROVISIONS OF CHAPTER 558, FLOR IDA STATUTES." 290
436	436	The failure to include in the contract the notice provided in 291
437	437	this subsection does not subject the contracting owner, 292
438	438	contractor, or design professional to any penalty. The purpose 293
439	439	of the contractual notice is to promote awareness of the 294
440	440	procedure, not to be a penalty. 295
441	441	(7) Upon agreement between the parties that such persons 296
442	442	served are responsible for the costs associated with the alleged 297
443	443	defective condition, the persons served shall deposit sufficient 298
444	444	funds in an escrow account to be manag ed by an escrow agent for 299
445	445	the purpose of protecting and distributing the funds. The funds 300
446	446
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454	454	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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457	457
458	458	may be released from escrow only as follows: 301
459	459	(a) For remediation or repairs of the agreed -upon 302
460	460	defective condition as determined by the settlement; or 303
461	461	(b) For remediation or repairs of known damages occurring 304
462	462	as a consequence of the agreed -upon defective condition as 305
463	463	determined by the settlement. 306
464	464	(8) The parties shall contract with a third -party licensed 307
465	465	engineer as defined in s. 471.005 or a construction managem ent 308
466	466	entity as defined in s. 255.32(1) to confirm and certify the 309
467	467	status of completion of each identified and agreed -upon 310
468	468	defective condition and damages occurring as a consequence of 311
469	469	the defective condition. 312
470	470	(9) Upon completion of the remediation or repa ir of the 313
471	471	defective condition, any remaining funds in the escrow account 314
472	472	must be released by the agent back to the payor. 315
473	473	Section 6. This act shall take effect July 1, 2025. 316