When beginning a construction project in Florida, whether you’re an owner, contractor, or subcontractor, few documents carry more significance than the Notice of Commencement (NOC). This single filing can determine whether lien rights are preserved, whether payments are properly protected, and whether disputes are avoided—or intensified. Understanding the purpose, requirements, and consequences of a Notice of Commencement is essential for anyone involved in Florida construction projects.
As a Florida construction lawyer, Jonathan P. Cohen, Esq. regularly advises contractors and property owners on how to properly prepare, file, and manage Notices of Commencement to protect their legal and financial interests. Below is a detailed look at what you need to know.
What Is a Notice of Commencement?
A Notice of Commencement is a legal document filed in the public records that signals the official beginning of a construction project. Under Section 713.13, Florida Statutes, the property owner (or their authorized agent) must record a Notice of Commencement before starting any improvement to real property that exceeds $2,500 in value.
The Notice of Commencement provides critical information to all parties involved in the project, including:
- The legal description of the property being improved
- The name and address of the owner, contractor, and any surety or lender
- The description of the work being performed
- The permit number and bond information (if applicable)
- The date of commencement
- The expiration date (which is typically one year from the recording date unless otherwise specified)
Recording this document establishes the framework for lien rights and payment protections throughout the project.
Why the Notice of Commencement Matters
For property owners, filing a valid Notice of Commencement helps manage and limit potential lien exposure by ensuring subcontractors and suppliers provide proper Notices to Owner (NTOs) before asserting lien rights.
For contractors, subcontractors, and suppliers, the recorded Notice of Commencement gives vital information—specifically who the owner and lender are, and where to send preliminary notices to protect lien rights.
Failing to comply with Notice of Commencement requirements can have serious consequences. In Palm Beach County Board of County Commissioners v. Cove Club Investors Ltd., 734 So. 2d 379 (Fla. 4th DCA 1999), the court noted that strict compliance with Chapter 713’s requirements is essential because construction liens are purely statutory. In other words, if the statutory procedures aren’t followed precisely, lien rights can be lost entirely.
Recording and Posting Requirements
Florida Statute §713.13(1)(d) requires that the Notice of Commencement be recorded in the public records of the county where the property is located. Additionally, a certified copy must be posted at the job site before any work begins.
Failure to properly record or post the Notice of Commencement can lead to confusion about the project’s start date, difficulties in tracking lien rights, and disputes over payment priority. The courts have consistently emphasized the importance of accuracy and timeliness in these filings.
For example, in Stunkel v. Gazebo Landscaping Design, Inc., 660 So. 2d 623 (Fla. 1995), the Florida Supreme Court highlighted the statutory intent behind these procedures—to provide transparency and protect all parties involved in construction improvements. Without a recorded Notice of Commencement, contractors and suppliers may have no way of knowing who the legal owner or lender is, complicating their ability to protect their lien rights.
Consequences of Paying Without a Valid Notice of Commencement
One of the most significant—and costly—mistakes a property owner can make is paying a contractor without a valid Notice of Commencement in place. Under Florida law, such a payment is considered an improper payment, meaning it does not discharge the owner’s liability to unpaid subcontractors or suppliers who later file valid lien claims.
Here’s how it can happen: without a properly recorded and posted Notice of Commencement, subcontractors and material suppliers may not know where to send their Notice to Owner, which alerts the owner of their right to file a lien. If the owner pays the general contractor without having received all the necessary lien waivers or without ensuring that a Notice of Commencement exists, the payment may not be “proper” under Section 713.06(3)(d), Florida Statutes.
If a subcontractor or supplier later files a lien because they were never paid, the owner may find themselves liable to pay twice—once to the contractor, and again to discharge the lien. Courts have consistently upheld this harsh but clear statutory outcome to encourage compliance and transparency in payment procedures.
In short, an unrecorded or expired Notice of Commencement exposes owners to double-payment risk. It disrupts the statutory chain of protection and leaves owners without the benefit of the “proper payment” defense. As a result, even diligent owners who believe they have paid in full can end up entangled in costly lien disputes and potential foreclosure actions.
This risk underscores why legal oversight from an experienced Florida construction lawyer like Jonathan P. Cohen, Esq. is invaluable before making or releasing any payments during a construction project.
Duration and Expiration
A Notice of Commencement is effective for one year from the date of recording unless a shorter duration is specified. However, it may be terminated early if the owner files a Notice of Termination, as provided in §713.132, Florida Statutes.
Once the Notice of Commencement expires, any subsequent work or improvements must be covered by a new Notice of Commencement to ensure that lien rights and payment protections continue uninterrupted.
Owners should also be aware that permits are tied to the Notice of Commencement, and expired notices can delay inspections or final approvals.
Common Mistakes and Their Consequences
- Failing to Record the Notice of Commencement – This is one of the most common mistakes property owners make. Without recording, subcontractors and suppliers may not know where to send their Notice to Owner, which can later result in lien claims or double payment exposure.
- Incorrect Information – An error in the property description, ownership name, or lender information can invalidate the Notice. Courts have held that inaccuracies in recorded notices can prevent a party from relying on statutory protections.
- Not Posting at the Job Site – Even if the Notice is properly recorded, failing to post it at the project location can still violate the statute and expose the owner to risks.
- Failure to Update Expired Notices – When a project extends beyond a year, a new Notice of Commencement must be filed. Forgetting this step can leave later work unprotected and result in payment and lien priority disputes.
The Impact on Lien Rights
The Notice of Commencement establishes the timeline for lien rights. Subcontractors and material suppliers must deliver their Notice to Owner within 45 days of first furnishing labor or materials, but if the Notice of Commencement is missing or defective, that deadline may be unclear.
The existence and recording date of the Notice also determine the priority of liens and security interests, especially when lenders are involved. For example, a construction lender’s mortgage recorded before the Notice of Commencement generally takes priority, but if the mortgage is recorded afterward, lien claimants may have superior rights.
Understanding these nuances can be the difference between getting paid and losing lien rights altogether—making professional legal guidance critical.
How a Florida Construction Lawyer Can Help
Navigating Florida’s lien and notice requirements can be complicated. The rules governing Notices of Commencement, Notices to Owner, and lien filings are highly technical, and even a small mistake can jeopardize payment or expose property owners to unnecessary liability.
Jonathan P. Cohen, Esq., a seasoned Florida construction lawyer, assists clients throughout the state with all aspects of construction law, including lien preparation and defense, contract drafting, payment disputes, and compliance with Chapter 713 of the Florida Statutes.
With decades of experience in construction litigation and dispute resolution, Jonathan P. Cohen, P.A. helps contractors, subcontractors, suppliers, and property owners ensure that their rights are properly documented and protected. The firm’s meticulous attention to detail and deep knowledge of Florida’s construction statutes make it a trusted resource for those working in Florida’s complex construction industry.
Contact Jonathan P. Cohen, P.A.
Whether you are a property owner about to begin a project or a contractor seeking to preserve your lien rights, understanding the Florida Notice of Commencement is essential. Missteps in this area can delay payments, complicate financing, or even result in costly litigation.
For guidance on recording and managing your Notice of Commencement—or for help resolving a lien dispute—contact Jonathan P. Cohen, P.A., an experienced Florida construction lawyer, to discuss your specific needs.
The information provided in this article does not, and is not intended to, constitute legal advice. The content in this article is presented for general informational purposes only.