Notice of Commencement, Notice of Termination and Construction Lien Law in Florida 2026

Notice of Commencement and Florida Construction Lien Law

The Florida Construction Lien Law, codified in Chapter 713 of the Florida Statutes, is one of the most important and complex areas of law affecting construction in South Florida. Every property owner, developer, contractor, subcontractor, and material supplier involved in construction in Miami-Dade County, Broward County, and Palm Beach County must have a working understanding of the Construction Lien Law to protect their financial interests. The core documents in the lien law system — the Notice of Commencement, the Notice to Owner, the Claim of Lien, and the Notice of Termination — form the legal framework that governs who gets paid and in what priority when construction disputes arise.

What Is a Notice of Commencement?

A Notice of Commencement (NOC) is a legal document that a property owner records with the county Clerk of Courts before construction begins on a project. Under Florida Statute 713.13, a Notice of Commencement is required for any improvement to real property for which a building permit is required and where the total value of the improvement is $2,500 USD or more. The NOC must be recorded with the Clerk of Courts in the county where the property is located. In Miami-Dade County, the NOC is recorded with the Miami-Dade Clerk of Courts. In Broward County, with the Broward County Clerk of Courts. In Palm Beach County, with the Palm Beach County Clerk of Courts. Florida Statute 713.13 requires that the NOC include the property's legal description, street address, and tax folio number. Incomplete NOCs will be returned for correction and re-recording, which delays the project.

Purpose of the Notice of Commencement

The NOC serves several critical purposes. First, it establishes the priority date for lien rights — all contractors, subcontractors, and material suppliers who provide labor or materials to the project after the NOC is recorded have lien rights that relate back to the date of the NOC. Second, the NOC notifies lenders, title insurers, and the public that construction is underway on the property. Third, the NOC must be posted at the construction site in a conspicuous location. Fourth, the NOC contains information that contractors and subcontractors use to serve Notices to Owner — the preliminary notices that are a prerequisite for lien rights for most parties. Fifth, the building permit must reference the recorded NOC, and in Miami-Dade County, the permit cannot be finalized without the NOC.

Notice to Owner – Protecting Subcontractor Lien Rights

Under the Florida Construction Lien Law, contractors who do not have a direct contract with the property owner — subcontractors, sub-subcontractors, and material suppliers — must serve a Notice to Owner (NTO) on the property owner within 45 days of first furnishing labor, materials, or services to the project. The NTO is a statutory warning to the property owner that the subcontractor has lien rights and that the owner should ensure that payment to the general contractor includes payment for the subcontractor's work. If a subcontractor fails to serve an NTO within 45 days, the subcontractor loses their lien rights for work performed before the NTO was served. The NTO is not a lien — it is a preliminary notice that preserves the right to file a lien if payment is not received.

Claim of Lien – Enforcing Payment Rights

If a contractor or subcontractor is not paid for labor, materials, or services furnished to a construction project, they can file a Claim of Lien against the property with the Clerk of Courts. The Claim of Lien must be recorded within 90 days of the claimant's last day of furnishing labor, materials, or services to the project. Once recorded, the Claim of Lien clouds the title to the property, making it difficult or impossible to sell or refinance the property until the lien is resolved. An unresolved Construction Lien can ultimately result in foreclosure of the property — even by a subcontractor or material supplier who had no direct contractual relationship with the property owner. Property owners who pay the general contractor without ensuring that all subcontractors and material suppliers are paid can still have liens placed on their property by those unpaid parties.

Release of Lien and Final Payment

The safest way for property owners to protect themselves from construction liens is to require a Final Release of Lien and Affidavit from the general contractor as a condition of final payment. This document, signed by the general contractor under penalty of law, certifies that all subcontractors, sub-subcontractors, and material suppliers have been paid in full for their work and materials. The general contractor's Final Release of Lien and Affidavit is a standard form in Miami-Dade County's building permit system. In addition to the final release, property owners should also obtain individual lien releases from major subcontractors — particularly electrical, plumbing, mechanical, and roofing subcontractors — who may have supplied expensive materials that were not paid for if the general contractor becomes insolvent.

Notice of Termination

When construction is complete, the property owner should record a Notice of Termination of the Notice of Commencement with the Clerk of Courts. The Notice of Termination is important for three reasons. First, it limits the period during which new parties can gain lien rights by serving Notices to Owner. Second, it formally signals to lenders, title insurers, and the public that construction has concluded. Third, it establishes the cutoff date after which the recording of the Notice of Termination closes the lien period. The Notice of Termination should be recorded only after all work is fully complete and all parties have been paid — not before, because recording it prematurely could inadvertently cut off the lien rights of parties who have not yet completed their work.

Lien Waivers and Draw Requests

For construction projects financed through construction loans, lenders require partial lien waivers from all contractors and subcontractors with each draw request. A partial lien waiver certifies that the signer has received payment through a specific date and waives lien rights for work performed through that date. Partial lien waivers protect the lender and property owner by ensuring that each loan draw is matched by a corresponding reduction in lien exposure. Property owners and their lenders should insist on proper partial lien waivers — signed and properly executed — before releasing each construction loan draw.

Contractor License Verification as Lien Risk Management

One often-overlooked aspect of lien risk management is contractor license verification. Under Florida law, contractors who are not properly licensed may forfeit their lien rights — an unlicensed contractor cannot enforce a lien. However, the presence or absence of a lien is a separate question from whether the contractor performed the work properly. Even if an unlicensed contractor cannot enforce a lien, the property owner may still be liable for defective work claims, warranty claims, or other legal theories. Verifying that every contractor and subcontractor holds a valid Florida DBPR license and a valid Miami-Dade County Local Business Tax Receipt before signing a contract is the most effective first step in lien risk management.

Bonding Requirements for Public Projects

For public construction projects — buildings owned by Miami-Dade County, Broward County, Palm Beach County, or a municipality — Florida's Little Miller Act (Section 255.05, Florida Statutes) requires contractors to post a Payment Bond and a Performance Bond equal to the contract amount. These bonds protect subcontractors and material suppliers (through the Payment Bond) and the government owner (through the Performance Bond) from contractor default. Subcontractors on public projects must serve a Notice to Contractor within 45 days of first furnishing labor or materials to preserve their rights under the Payment Bond. The bond claim process is an alternative to the lien process for public projects, since government property cannot be liened under Florida law.

USD Costs of Lien Disputes

Construction lien disputes are expensive for all parties. A property owner defending against a wrongful lien claim in circuit court can spend $20,000 USD to $100,000 USD or more in attorney's fees. A contractor pursuing an unpaid lien claim incurs similar attorney's fees. Even if the underlying dispute is resolved, the cost of lien litigation often exceeds the amount at issue in smaller residential construction projects. The most cost-effective approach to construction lien risk is prevention — through clear contract terms, proper license verification, timely payment practices, and systematic lien waiver collection at each payment milestone. Endless Life Design advises all construction clients on lien risk management as an integral part of the construction project management process.