Florida is one of a handful of states that requires a Notice of Commencement to be filed at the start of (almost) every private construction project—specifically, ones that have a value of $2,500 or more. Statistically, this condition adheres to almost every private construction project. The NoC is a relatively simple and straightforward document, but it is no less important for construction owners, prime contractors, and subcontractors.
Who Needs a Copy of the Notice of Commencement?
Before filling out the Notice of Commencement, you need to be aware of where it needs to be filed and posted. You need to file the NoC with your local county clerk; depending on the county you’re working in, you might be able to file the NoC electronically. Before a single shovelful of dirt is moved on your construction or improvement project, you must file the NoC with the appropriate county office and post a copy of it on the actual job site. Generally, all the applicable permits must be pulled before submitting the NoC.
What Actually Goes in the Notice of Commencement?
The Notice of Commencement is not some comprehensive form that lists every last detail of a project. Instead, Florida law requires NoC’s to include the legal description of the property to be improved, including the street address and tax folio number. Much of the NoC for a particular project contains the names and contact information for the key parties involved in the project: the owner, owner’s designee, prime contractor, surety on the payment bond (if any), and lender for the construction loan (if any).
You should also include a “general description” of the project, as well as the expiration date. The expiration date of the NoC will be one year from the filing unless it is specifically designated otherwise in the notice. The NoC will be filed by either the project owner or the lender of the construction loan.
Why is a Notice of Commencement Important?
A Notice of Commencement helps keep track of every party involved in a project, as well as the payments made to each party. The NoC ensures that every payment the owner makes is “proper,” meaning that the owner is generally protected from having to pay twice for the same work. However, simply posting the NoC does not absolve the owner of performing in accordance to the contract.
Our firm intimately understands the formal construction process for a wide variety of projects. When you retain us, you can be sure that your project will go as smoothly as possible. Call us today at 305-227-4030 to discuss your options with our team.