Florida subcontractor payment deadlines: 3 dates to track

• Log the date each public entity payment arrives before counting the contractor's deadline to pay subcontractors and suppliers.
• Record when each subcontractor receives payment before counting its deadline to pay its own subcontractors and suppliers.
• Compare the contract date with the public entity's deadline for the undisputed portion of a disputed payment request.
• Keep written dispute notices with the payment records, and check late payment dates before adding Florida interest.

This article is for owners and office leads who pay subcontractors on public construction work in Florida or Washington. The Florida 10-day contractor rule is stated for payments a contractor receives from a public entity, according to The Florida Senate, so confirm where the money came from before applying that count to any invoice. Your office should confirm the paying party for each job before any check is released.

Washington's rule comes from a different state, so it should not be treated as the same law as Florida's. Washington's statute covers payment received by a contractor or subcontractor for work performed on a public work, according to Washington State Legislature, and it sets its own ten-day wording. Keep a separate note for Washington jobs in your payment calendar, so Florida and Washington keep separate deadline columns.

Office leads who pay sub-tier firms should identify who holds the contract with the public owner, because the Florida 10-day count runs from the date the contractor is paid, according to The Florida Senate, and the 7-day count runs from the date the subcontractor is paid.

Your payment calendar should list each subcontract, the paying party for each invoice and the state where the work sits. Your office can then decide which statute's deadline applies to each check before any money goes out.

The table below sets the key wording from each source beside its publisher.

The Florida text says that when a contractor receives payment from a public entity for labor, services, or materials furnished by subcontractors and suppliers it hired, the contractor must pay the amounts due to them within 10 days after the contractor is paid, according to The Florida Senate, so the clock depends on the payment date.

Your office should therefore record the date each public entity payment reaches your account, since the statute starts the count from the date the contractor is paid, according to The Florida Senate, and that date anchors the release.

The Florida 10-day contractor rule and Washington's ten-day rule share a number, but they come from different sources and states. Washington's text says a contractor or subcontractor shall pay any subcontractor not later than ten days after payment is received, according to Washington State Legislature, and that wording belongs to Washington's law.

The Florida rule covers labor, services, or materials furnished by subcontractors and suppliers the contractor hired, according to The Florida Senate, so group those invoices by public payment. Your office can match each release to the public entity payment that paid for it.

The Florida text also sets a clock for the subcontractor itself. When a subcontractor receives payment from a contractor for labor, services, or materials furnished by subcontractors and suppliers it hired, the subcontractor must pay the amounts due to them within 7 days after it is paid, according to The Florida Senate, so the count belongs to that firm.

This matters for owners who hire a subcontractor that then hires its own suppliers. Your office should ask each subcontractor for the date it received payment from the contractor, since the count depends on that date, according to The Florida Senate, so keep the written date on file.

A subcontractor's payment date may differ from the date the prime contractor was paid for its public work, so the contractor and subcontractor counts can run on separate calendars. Your office should track both dates rather than assume the subcontractor's clock matches the contractor's clock.

Your office should label each deadline in its calendar with the payer and the payee.

Your office should keep each state's count on its own calendar line, since the Florida and Washington texts come from different states, according to Washington State Legislature, and those lines should not merge.

The Florida text covers the public entity side of the payment chain. If a public entity disputes a portion of a payment request, the undisputed portion must be paid by the date required under the contract or by 20 business days after the request arrives, whichever is earlier, according to The Florida Senate, so the controlling date can fall before the contract date.

The phrase whichever is earlier sets the controlling date, because the contract date and the 20 business day count are compared, according to The Florida Senate, and the earlier date governs payment.

Your office should record the date a payment request reached the public entity, because that arrival date starts the count under the statute, according to The Florida Senate, so place that date beside the invoice number.

Your office should separate the disputed amount from the undisputed amount on each request, since the quoted wording refers to the undisputed portion, according to The Florida Senate, so keep both figures visible.

Your office should keep a separate timing column for each state on mixed jobs, so a Florida public entity count is not applied to a Washington payment. For payment request timing, see progress payment applications.

Suppose a contractor is paid by a public entity on day 10. Adding the Florida 10-day payment period gives a deadline of day 20 for payment due to its subcontractor. The starting date is the contractor's payment date. These numbers are illustrative only and describe no real job.

The Florida text does not prohibit a dispute over all or any portion of a payment alleged to be due to another party, pursuant to the terms of the relevant contract, according to The Florida Senate, when the contractor or subcontractor notifies that party in writing of the amount in dispute and the actions required to cure the dispute.

The written notice is the step your office can document, since the statute refers to notice in writing, according to The Florida Senate. Your office should put the amount in dispute and the cure actions in writing, and keep a copy of that notice in the job file.

The undisputed amounts stay on their normal schedule, because the contractor or subcontractor must pay all undisputed amounts due within the time limits imposed by this subsection, according to The Florida Senate, so schedule them on time.

Interest is a separate issue from the dispute notice. Under the Florida text, payments due for the purchase of construction services and not made within the applicable time limits bear interest at 2 percent per month, according to The Florida Senate, so late dates matter. For wording a late-payment notice, see Late fee payment reminder: 4 lines to include.

The lien text is North Carolina's statute, so it is not a Florida or Washington rule. Under that text, a first tier subcontractor may, to the extent of its claim, enforce the claim of lien on real property of the contractor, according to North Carolina General Assembly, so the lien question turns on the claimant's tier and the extent of its claim. For Florida lien deadlines, see Florida lien time limits: 3 dates to log on each job.

Your office should keep a dated record of every payment it receives on a public job, including the paying entity and the invoice it covers. The Florida count runs from the date payment is received, according to The Florida Senate, and the Washington wording starts from the same point, according to Washington State Legislature, so that date is the entry to protect.

Your office should record the amount disputed separately from the undisputed amount on each payment request, along with the written notice and the cure actions. Your office should keep copies of every written notice sent to the other party, because the statute refers to notice in writing, according to The Florida Senate, so the file can show what was sent.

Your office should record the date each subcontractor received payment from the contractor, since the Florida 7-day count runs from that date, according to The Florida Senate, so attach the subcontractor's release date to that record.

Your office should track any payment not made within the applicable time limits and note the late date, so log the days late for each invoice.

Your next step is to pull this month's subcontractor invoices, record the date your firm received each payment, and count the days to the 10-day and 7-day deadlines before releasing any subcontractor check.

How long does a contractor have to pay a subcontractor in Florida?

A contractor must pay amounts due to subcontractors and suppliers within 10 days after a public entity pays it, according to The Florida Senate. Private jobs should stay out of this count, because the Florida wording refers to payments from a public entity.

How long does a subcontractor have to pay its suppliers in Florida?

A subcontractor must pay amounts due to its own subcontractors and suppliers within 7 days after a contractor pays it, according to The Florida Senate, so the count starts when the subcontractor is paid. The quoted wording covers labor, services, or materials furnished by subcontractors and suppliers the subcontractor hired. Your office can ask for the subcontractor's payment date so the count can be checked.

Can part of a payment be held over a dispute?

Yes, under the Florida text, the statute does not prohibit a dispute over all or any portion of a payment pursuant to the terms of the relevant contract, according to The Florida Senate, if the party notifies the other party in writing of the amount in dispute and the actions required to cure the dispute. Keep the notice with the payment request so the disputed amount and cure actions can be checked together.

What interest applies to late payments?

Under the Florida text, payments due for the purchase of construction services and not made within the applicable time limits bear interest at 2 percent per month, according to The Florida Senate. Your office should check each payment date against the applicable limit before adding interest.

Does Washington's ten-day rule match Florida's?

No, Florida's and Washington's rules should not be treated as the same law. Washington's text says a contractor or subcontractor must pay any subcontractor not later than ten days after payment is received, according to Washington State Legislature. The Washington text says a party may withhold no more than one hundred fifty percent of a disputed amount in the event of a good faith dispute, according to Washington State Legislature.