Category Archives: Construction

The Florida Building Code is a group of regulations specified in Florida Statute 553.79. It requires businesses, individuals, and contractors to obtain necessary permits when “constructing, erecting, altering, repairing, or demolishing” a building. These regulations are intended to keep employees, patrons, and visitors safe while on the premises and help buildings withstand natural disasters like hurricanes. While the state dictates the requirements that make up the Florida Building Code, each county has specific requirements for obtaining a building permit. In addition, different permits are needed if you are constructing a new commercial building, renovating an old one, or building a new residential property. Below, we discuss the requirements for obtaining a new construction commercial building permit in Orange County, Florida.

Required Documents for New Commercial Building Permit Application

Contractors must submit various documents online to apply for a new commercial construction permit in Orange County. In most cases, contractors must be the ones to apply for the permit and accept the issuance once it is approved. A business owner can apply for a permit if the project costs less than $75,000. Contractors must submit their application for new construction along with the appropriate documents through Orange County’s Fast Track online permit system (described in detail below). Necessary documents that are required to accompany the initial application include:

• Site plan or survey (including dimensions and location)
• Project scope signed and sealed by a licensed Florida architect or engineer
• Life safety plans
• Floor plan
• Construction type
• Occupancy classification
• Energy conservation code
• Fire flow calculation
• Door and window installation plan and product description

 How to Apply for a New Commercial Building Permit

1. Fill out the Fast Track application.

Orange County uses an online portal called Fast Track for all permit applications. Filling out the online application and uploading the necessary documents is the first step in obtaining a new commercial construction permit.

2. Upload documents.

Follow the instructions for uploading documents carefully, including required file types and names to ensure your application is processed promptly. In addition to the documents mentioned above, you must complete a Commercial Plan Review checklist and pay a deposit fee.

3. Project and plans review.

An inspector will review the online application and ensure it complies with all elements of the Florida Building and Fire Prevention codes. Depending on the type of construction, there may be additional reviews that are required.

4. Approval or denial.

After the review process, you will receive an email with either a permit approval notice or a denial. If you are denied, you can utilize the comments within the application to resubmit your permit after revising your building plans. If your application is accepted, the permit status will change to “final issuance,” and you will be emailed a final issue letter. You will also need to sign and notarize the second page of the new building application and resubmit it to Fast Track.

5. Pay permit fees.

6. Apply for sub-permits.

Additional permits may be required depending on the type of building. You may need to apply for a sub-permit for the building’s electrical, roofing, gas, irrigation, plumbing, or mechanical elements.

7. Notice of commencement.

This notice needs to be signed with a certified copy uploaded into the Fast Track system before the first inspection.

8. Schedule the first inspection.

9. Final inspection and permit completion.

Boutty Law Firm: Business and Construction Attorney in Central Florida

 Attorney Shane Boutty, P.A., has over 20 years of experience in the construction industry and is experienced in all aspects of commercial law. If you believe your new construction project has been denied unfairly, or you have issues regarding new building inspections, we can help ensure your project stays on track and up to code. Call our office in Maitland at 407-710-0461 for a free initial consultation.

As a general contractor, your business must have Commercial General Liability insurance (CGL). This type of insurance is required for most construction contracts. Primarily, CGL covers personal injuries and property damages to others during the job or on your completed work. Most CGL insurance policies include clauses for exclusion—specific times that insurance will not cover damages. One common exclusion in contractor policies is the “Damage to Your Work” or “Your Work” exclusion. Below, we discuss what this exclusion means, common scenarios where it is used, and how it impacts a claim against your insurance as a general contractor.

What is the “Damage to Your Work” Exclusion?

 The Damage to Your Work exclusion protects the insurance company from paying to cover the cost of replacement materials and structures resulting from faulty or defective work. The policy may word this exclusion similar to this:

“This insurance does not apply to property damage to work performed by or on behalf of the Named Insured arising out of the work or any portion thereof, or out of materials, parts, or equipment furnished in connection therewith. This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor.”

Most CGL policies cover property damage and bodily injuries caused by defects or construction errors but will not cover replacement costs for fixing the damaged work. The Damage to Your Work exclusion allows insurance companies to deny covering the costs of repairs or replacement for materials for work you performed.

Why Do Insurance Companies Include Damage to Your Work Exclusions?

Insurance covers property damage and personal injuries to clients or customers caused by general business risks. These policies are not meant to act as a warranty, covering the replacement or repair of defective parts related to the claim. The Damage to Your Work exclusion prevents insured business owners from receiving funds to repair or replace the faulty work that caused the damage in the first place. It includes denying claims for building materials like shingles, flooring, drywall, and the cost of labor to repair what was damaged.

Example Scenarios

To understand how the Damage to Your Work exclusion may be utilized in the real world, here are two instances where this exclusion may come into play:

Bathroom Remodel

During a bathroom remodel, a contractor retiled the shower. Before installing the tile, the contractor placed a waterproof rubber membrane underneath the shower pan to prevent water from entering the subfloor. During installation, the membrane ripped, causing a hole that the contractor did not notice before continuing to install the shower. Several months after the remodel was complete, water began to leak and caused damage to the surrounding shower drywall and the shower’s subfloor. To fix the leak, the contractor had to remove some of their previously completed tile work and replace part of the subfloor. The contractor made a claim through his CGL insurance, which paid for the client’s property damage. He also claimed to recover the cost of labor, and for replacing the tile he had to tear out. The claim was denied under the contractor’s Damage to Your Work exclusion, citing the tile repairs were only needed due to the contractor’s poor workmanship caused by the tear in the membrane. 

Roof

A contractor oversaw a roof install for a client. However, the shingles were not installed properly. Several months later, the roof leaked during a bad thunderstorm, causing damage to the client’s belongings stored in the attic. To fix the damage, the contractor had to replace the entire roof. The contractor filed a claim with his CGL insurance, which covered damage to the homeowner’s belongings. However, the insurance denied coverage for the cost of replacing the roof, citing the Damage to Your Work clause as the roof damage was caused by faulty shingle placement.

Damage to Your Work and Subcontractors

As in the sample wording above, the Damage to Your Work exclusion often includes phrasing regarding subcontractors. In these instances, CGL may cover the cost of repairs if the damage was caused by work done on your behalf by a contractor. This is because the subcontractor should have a similar exclusion within their own CGL policy. In this instance, the subcontractor would be responsible for the costs of repairs and damages.

Appealing a Damage to Your Work Exclusion

The Damage to Your Work exclusion is common in construction contracts. However, it is often contested and regularly misinterpreted. If you believe your insurance company has unfairly denied your claim under the Damage to Your Work exclusion, contact the Boutty Law Firm. Attorney Shane Boutty is a certified contractor and former construction business owner. He understands construction law, claims, and insurance policies, fighting for your rights as a construction professional. Schedule a consultation by calling 407-710-0461 or stop by our office in Maitland for a consultation to discuss your case. 

Construction projects require collaboration between multiple businesses from various industries to be completed successfully. Like any business transaction, having a well-written and thorough contract is essential when taking on a construction project. Construction contracts define the risks and liabilities of contractors, subcontractors, construction companies, and clients. Here are the main items to include in a construction contract. 

Lien warning

In Florida, a lien warning is required for all direct contracts greater than $2,500 that deal with single or multiple-family homes up to four units. The disclaimer ensures property owners are notified that contractors or anyone who works on a property have the right to impose a claim on the property and sell it for parts, materials, and labor if they are not paid (which is called a lien). The notice also ensures homeowners are aware that they may be subject to a lien even if they paid their contractor in full, but the contractor failed to pay employees. Florida Statute 713.015 details the exact wording and requirements for the disclaimer. It must appear in 12 point font that is capitalized in bold on the first page of the contract or on a separate page. It must also be signed and dated by the property owner. 

Project description

Another essential item in a construction contract is a detailed scope of work. The project description should include who will complete each part of the project. This section should also contain any relevant documents, such as blueprints or drawings, that will help accurately represent the scope of the work. An in-depth project description holds everyone involved with the project accountable and helps them understand the project’s goals. 

Change order clauses

One common aspect of a construction contract is defining how change orders will be handled throughout the project. Change orders describe how the project will be revised if the scope of work alters due to unexpected challenges, timeline modifications, mistakes, and aesthetic changes.

Construction schedule

Although changes may occur, a construction contract should estimate a relatively accurate timeframe of when the project should be completed. This section should also detail how to adjust the original timeframe if needed. 

Specifications 

This section is a detailed overview of the techniques and materials used in the project. Specification sections can be very technical, which is why they should be formatted according to the Construction Specifications Institute (CSI) MasterFormat so that it is easy for contractors and subcontractors to understand.  

Cost estimate

Although it is nearly impossible to estimate the exact cost of a construction project, the contractor or construction company must understand all aspects of the project to provide an accurate cost estimate. 

Indemnities 

Another critical aspect of a construction contract is to include indemnities. Sometimes referred to as a “hold harmless” clause, indemnity helps manage the risk taken by the involved parties during the project. Indemnity is a payment made by one party to another that covers damages, injuries, or losses during the project due to the negligent acts of another party. 

License and insurance information  

Including your business license number and insurance information in a construction contract shows that you have the means to complete the contract and are covered in case of accident or injury. Florida requires contractors to hold a minimum of $300,000 in general liability coverage for bodily injury and $50,000 for property damage. Including your information shows your ability and credibility to complete the project. 

Special considerations or conditions

Lastly, any considerations or conditions relevant to the project should be included in this section. Any details that will be helpful for the property owner, contractor, and subcontractors to know will assure the project scope is as clear as possible. 

Boutty Law Firm: Central Florida construction attorneys 

Construction contracts can be very complicated and have a significant economic impact if not written correctly. The Boutty Law Firm has 20 years of experience working with construction companies. We will ensure you create a construction contract that helps you get the job done and keeps your clients well-informed. Contact us at 407-710-0461 or get in touch using our contact form for assistance in creating your next construction contract. 

      Construction projects typically include complex, long-term contracts. There are many reasons for disagreements due to perceived or real violations of a contract, whether it involves a single-family home or a multi-million dollar commercial project. Some common causes for breach of contract disputes are breakdowns in communication, changes in economic circumstances, delays, injuries, updates in construction law, defective materials, technical problems, and force majeure events. Alternative dispute resolution is a method that can effectively resolve conflicts between contractual parties in a timely and economical manner.

   Provisions to address disputes are essential when drafting a construction contract. A dispute resolution clause within a contract details the terms of resolving conflicts. There is an increasing trend in the construction industry, especially for commercial projects, to draft contracts with alternative dispute resolution clauses. Courtroom litigation proves to be a costly, public, and lengthy process that is likely to result in irreconcilable differences between those in conflict. Reaching a compromise without court intervention can often preserve the relationship between the parties. Alternative dispute resolution is generally an expeditious way to resolve conflicts and is more informal than a trial.

Popular Methods for Alternative Dispute Resolution include Negotiation, Mediation, and Arbitration.

   Negotiations are the first step when trying to solve construction issues between industry professionals or property owners. If this is unsuccessful, mediation can be initiated. In contrast to negotiations, a neutral third party mediator intervenes to help those in conflict reach a mutually agreed-upon compromise. Arbitration Code chapter 682 in the Florida statutes governs arbitration. This process also uses a neutral third party; however, that person acts as a judge. Their decisions are generally legally binding. There must be clarity in the language of a contract regarding dispute resolution to settle differences effectively. Dispute resolution clauses have profound implications for the contractual rights and obligations that are enforced.

Common Items to Include in a Contract regarding Dispute Resolution are:

• One or more conflict resolution methods may be written in the contract, such as utilizing a negotiation approach and proceeding to mediation as needed. If a compromise is not reached, the parties can begin the arbitration process and, if necessary, formalized litigation.
• It should be documented if the dispute resolution method is a final, binding, and confidential agreement.
• The third-party negotiator, mediator, or arbitrator that is mutually chosen should be written into the contract.
• There can be a waiver of rights for courtroom litigation.
• The formal method to communicate the results, such as the findings, conclusion, and awards, is necessary for the contract.
• Payment arrangements for a third-party negotiator, mediator, or arbitrator are included in the contract.

The Boutty Law Firm P.A. is a Multi-Service Law Firm Dedicated to Central Florida Communities.

   Our law firm is experienced and skilled in alternative dispute resolution techniques to bring parties in conflict to an agreement. As necessary, we provide innovative and aggressive strategies to resolve differences in courtroom litigation. As the law firm’s founder, attorney Shane Boutty has over twenty years of legal knowledge in the construction industry as a contractor, law professor, and owner of several construction companies. With a background in engineering, Attorney Larry Christopher Tabor brings a unique perspective. He is a Florida Supreme Court Certified Circuit Court Mediator.

The Boutty Law Firm P.A. is located in Maitland, Florida. We represent construction industry professionals and property owners in small and large construction projects throughout Orange, Seminole, Osceola, and Volusia Counties. Call for an appointment at 407-622-1395 to discuss your concerns. We strive to accomplish your goals with efficient and cost-effective legal solutions.

There are various types of contracts utilized in the construction industry between the contractor and the property owner to convey the terms and scope of the work. These agreements are mutually binding, allowing both parties to plan for the project and the future. A well-crafted construction contract provides protection for the contractor and the property owner to ensure a smooth transaction.

    A cost-plus contract is frequently used for a proposed project that does not have a detailed estimate of the work. In simplified terms, the contractor is reimbursed for all the construction costs, with an additional amount designated for profit. In a construction project, there are direct costs, indirect costs, and profit. Direct costs include labor, materials, equipment, and professional consultants needed to complete a project. Indirect costs are general overhead for contractors such as insurance, office supplies, miscellaneous expenses, travel expenses, and others. In negotiating a profit margin, some cost-plus contracts are fixed, and others offer incentives for quality technical skills, for finishing a project ahead of schedule or completing a project below budget.

Some Variations in Cost-Plus Agreements are:

• Fixed-fee contracts include direct and indirect costs with a pre-determined and non-negotiable fixed fee for a contractor’s profit, which is typically a percentage.
• Incentive fee contracts have provisions to provide profit incentives for meeting or exceeding pre-determined project objectives and the project’s direct and indirect costs.
• Award fee contracts include direct and indirect costs. The profit margin for the contractor is subject to the property owner’s evaluation of the project. Financial incentives are variable and paid if the work is completed according to the property owner’s satisfaction.

 Liability Risks that occur with Cost-Plus Contracts

   Although cost-plus contracts are generally favorable to contractors, they must recognize there are potential legal risks. Disputes and litigation can arise, such as allegations of breach of contract, fraud, and mechanic’s liens.

    Breach of contract allegations occurs if the contractor or the property owner does not abide by the terms of the contract. Contractors and sub-contractors must keep meticulous records, as supporting documentation for their work. Contractors have a duty to provide detailed records and invoices to justify expenditures to property owners. A lack of organized and itemized records or confusion over records can result in a contractor or sub-contractor not being paid and the subsequent placement of a mechanic’s lien. An example of an allegation of fraud is the contractor’s inability to justify the actual expenditures or intentionally inflating costs. This situation can result in personal liability for the contractor.  

How to Minimize Disputes

   It is critical for a contractor to have a system in place to track expenditures. These include detailed invoices for building materials, supplies, labor hours, payroll, consultant fees, and others. It is necessary to maintain close supervision of a project, transparency, and sharing of audits and records with the property owner. These elements are vital to complete a successful transaction.

The Boutty Law Firm, P.A. offers a Free, Initial Consultation.

   At The Boutty Law firm, P.A., we are dedicated to providing quality legal services for clients throughout Central Florida. We have vast experience in construction and business law, representing our clients’ best interests, with an impressive track record in state and federal courts. A construction project has a high degree of variability. Our law office can advise, negotiate, and draft the most favorable contract for your project. We establish contracts for property owners and construction professionals, with clear language and provisions for contingencies in unforeseeable circumstances. We provide comprehensive advice and support for project management, from the initial drafting of contracts through project completion and post-construction disputes and litigation.

Call The Boutty Law Firm, P.A., to represent all of your legal construction needs. We provide exceptional legal services for clients in Orange, Seminole, Osceola, and Volusia Counties in Florida. We look forward to discussing your construction projects and can be contacted at our Maitland office at 407-622-1395 or 407-622-1395.