Impact of Punch List on Lien Time Frame

Contractors are regularly called back at the end of each job to address a punch list of items not quite done to the owner’s satisfaction or not yet fully completed. Generally these are more touch up tasks than substantive work.

When an electrician wasn’t paid, it filed its claim of lien on the 95th day after it had last worked on the job site, believing that since it had gone back on day 94 to tackle some final punch list items the time frame for its filing would be extended. The owner cried foul, saying the claim was filed late. The court agreed.

Corrective work is not last work

The time periods in which a claimant must give notice and file its claim are strictly interpreted. The electrician argued that its cutoff date should be extended to account for the work done to actually activate certain circuits and to complete several punch list items. But his arguments fell on deaf ears. Florida’s courts have made clear for some time that remedial or corrective work does not extend the time for filing a claim. Such work is merely incidental to a completed contract and is not considered material.

This electrician had to file his claim within 90 days of last doing work, not last being at the jobsite.

Punch List Work Not Last Work

A sprinkler contractor submitted its final pay application through a sworn statement, noting that no additional work was required on the project and that 100% of its work was completed. Ninety four days later when it wasn’t paid, it served its Notice of Non-Payment with the project surety. In the lawsuit that followed, the surety moved for summary judgment against the sprinkler company alleging late notice. The circuit court agreed, as did the District Court of Appeal.

Corrective Work Doesn’t Extend Deadlines

The 90-day period in which a claimant must give notice to a payment bond surety on a statutory bond claim is strictly interpreted. The sprinkler company argued that its cut off date should be extended to account for the work done to attend the final inspection, to actually activate the fire protection system, and to complete several punch list work items. But Florida’s courts have made clear, for some time now, that remedial or corrective work does not extend the time for filing a claim. Such work is merely incidental to a completed contract and is considered unsubstantial.

Not only did the sprinkler company wait four days too long, it also couldn’t overcome its own earlier affirmative statements that all its work was completed.