Florida Notice of Contest of Claim Against Payment Bond

A statutory Notice of Contest of Claim against a Payment Bond, as set forth by 713.23(1)(e) Fla. Stat. (2016), is used by a contractor or her attorney to dispute a demand for payment for labor, services, or materials. A contractor or the contractor's attorney may also use this form to shorten the time allotted to commence a claim against a payment bond provided under this section or 713.245.

Before filing this notice, the lienor must have recorded both a Notice to Contractor and a Notice of Nonpayment. As specified in 713.23, an "action for the labor or materials or supplies may not be instituted or prosecuted against the contractor or surety unless both notices have been given, if required by this section."

Further, the law limits the window to initiate an action against the contractor or against the surety on the bond to one year from the performance of the labor or completion of delivery of the materials and supplies. The countdown starts on the last day of furnishing labor, services, or materials by the lienor, and exceeding the time limit will likely invalidate the lienor's claim.

This document includes the name and address of the lienor, the dates on which the notice of nonpayment was drafted and served, and the date on which the notice is signed. The contractor or his attorney must sign the form in front of a notary before delivery to the lienor.

After being served with the notice, the lienor must respond with a suit to enforce his or her claim against the payment bond within 60 days or his claim will be extinguished automatically.

Each case is unique, so contact an attorney with questions about using a statutory Notice of Contest of Claim or other issues related to Florida's Construction Lien Law.