In Florida, a property owner's obligation to release final payment on a private construction project is triggered by completion of the work — not solely by passing a government inspection — and the Florida Prompt Payment Act (Fla. Stat. § 255.073–255.078 for public projects; Fla. Stat. § 713.346 for private projects) sets a hard deadline of 14 days after the payment obligation becomes due. For subcontractors, that obligation becomes due no later than 7 days after the general contractor receives payment from the owner. Owners who withhold payment beyond those deadlines without a written "good faith" dispute notice owe interest at 2% per month plus reasonable attorney's fees. Subcontractors who skip the Florida Notice to Owner lose their right to enforce payment through a mechanics lien — eliminating their most powerful collection tool.
What Triggers the Final Payment Obligation in Florida Construction?
Final payment becomes legally due in Florida when the contracted scope of work reaches "substantial completion" or full completion as defined in the parties' contract — not when a municipal inspector signs off. Under Fla. Stat. § 713.346, the owner's payment obligation to the general contractor is triggered by completion of the work per the contract terms, delivery of the contractor's final invoice or payment application, and satisfaction of any contractually required closeout documents. A certificate of occupancy (CO) is often the practical milestone owners use to declare a project complete, but the statute does not make a CO a legal prerequisite for payment. If the work is done and the CO is delayed because of a city backlog, that delay does not legally extend the owner's payment deadline.
For subcontractors, the clock starts differently. Once the GC receives payment from the owner for work that includes your scope, the GC has 7 days to pay you under Fla. Stat. § 713.346(3). That 7-day window is not negotiable — a subcontract clause that says "pay when paid" does not override Florida's Prompt Payment Act protections, though "pay if paid" clauses remain a contested area and should be reviewed with a construction attorney.
How Long Does a Florida Owner Have to Release Final Payment?
A Florida owner on a private project has 14 days from the date payment becomes due to release final payment, under Fla. Stat. § 713.346(1). Payment becomes due when the owner receives a proper invoice or payment application from the general contractor after completion. If the owner fails to pay within 14 days and has not delivered a written notice of a good-faith dispute within that window, interest begins accruing at 2% per month on the unpaid balance, and the owner becomes liable for the contractor's reasonable attorney's fees if litigation follows.
On public projects — contracts with state agencies, counties, or municipalities — the Florida Prompt Payment Act at Fla. Stat. § 255.077 requires payment within 20 days of a proper invoice following final inspection and approval. Local government entities follow the same 20-day rule under Fla. Stat. § 218.735. Missing those deadlines on public work triggers the same 2% monthly interest penalty.
These deadlines matter. According to Rabbet's 2024 Construction Payments Report, 82% of contractors now face payment waits of over 30 days, up from 49% just two years prior. Florida's statutory deadlines exist precisely because payment delays are the industry norm — but the law only protects you if you know it and enforce it.
Can a Contractor Withhold Final Payment After Passing Inspection?
An owner or GC can legally withhold final payment in Florida only if they have a documented, written good-faith basis for the dispute. Under Fla. Stat. § 713.346(3), if a contractor disputes a portion of a payment request, they must provide written notice to the subcontractor identifying the specific amount disputed and the reason for the dispute within the payment deadline window. They cannot simply ignore an invoice or cite a vague dissatisfaction with work quality.
Passing a government inspection does not automatically end all dispute rights. An owner could still assert:
- Incomplete punch list items not yet remedied
- Defective workmanship documented before or after inspection
- Missing closeout documents required by contract (as-builts, warranties, lien waivers)
However, the disputed amount must be quantified and communicated in writing. The owner or GC cannot withhold the entire final payment because 3 punch list items remain open. Under Florida case law, withholding amounts disproportionate to the value of the remaining disputed work — or withholding without written notice — forfeits the protection against interest and fees.
What Are Florida Punch List Disputes and Final Payment Withholding Rules?
Florida does not have a specific punch list statute, but general contract law and the Prompt Payment Act together govern how punch list disputes affect final payment. The controlling principle is that a retainage or withholding must be proportionate to the actual value of the uncompleted or disputed work. Withholding $40,000 because of a $1,200 punch list item is not defensible — and courts have consistently found that excessive withholding constitutes a material breach by the owner or GC.
Retainage on Florida private projects is governed by Fla. Stat. § 713.346(7), which limits retainage to 10% of the contract price until the project is 50% complete, after which the rate must be reduced to 5% if the contractor is performing satisfactorily. At final completion, retainage must be released within 14 days. If punch list items remain, the owner may withhold up to 150% of the estimated cost to complete those items — not a blanket continuation of full retainage.
If you are a subcontractor dealing with a GC who is using punch list disputes as a pretext to hold your money, document everything: date-stamped photos, written completion notices, and any written responses from the GC. Your leverage is your mechanics lien right — but only if you preserved it with a timely Notice to Owner.
Does a Florida Certificate of Occupancy Trigger Final Payment Release?
A certificate of occupancy can serve as the contractual trigger for final payment if the contract explicitly says so — but it is not a statutory requirement under Florida's Prompt Payment Act. Many residential and commercial contracts do tie final payment to CO issuance, which is a common and enforceable term. If your subcontract or the prime contract defines "completion" as CO issuance, then the payment clock does not start until the CO is issued.
The problem arises when a CO is delayed through no fault of the contractor — for example, a municipal inspection backlog or a third-party utility issue. In those situations, courts look at whether the contractor has actually completed their contracted scope of work, regardless of the CO status. If your work is done, your contract does not condition payment on the CO, and the owner is using a delayed CO as a pretext to hold payment, you have a strong argument that the payment obligation has already been triggered.
Review your contract carefully. If it conditions final payment on CO issuance, try to negotiate a clause that defines "CO delay not caused by contractor" as an event that cannot extend the payment deadline beyond a fixed number of days.
What Are Subcontractor Rights When Final Payment Is Delayed After Inspection?
When a Florida owner or GC fails to release final payment after your work is complete and inspection has passed, you have four main options — and you should pursue them in parallel, not in sequence.
1. Send a formal written demand. Put the Prompt Payment Act deadlines in writing. Reference Fla. Stat. § 713.346 explicitly. Owners and GCs who recognize that you know the law often pay faster.
2. File a mechanics lien. Under Fla. Stat. § 713.08, a subcontractor has 90 days from the last date of furnishing labor or materials to file a mechanics lien on a private project. This is your most powerful tool. The lien clouds the property title and forces the owner's hand — especially if there is a lender or an upcoming sale or refinance.
3. Make a claim against the payment bond. On bonded projects (required on Florida public projects under Fla. Stat. § 255.05), you have lien rights against the payment bond even without a property lien. Notice requirements still apply — typically written notice to the surety within 90 days of last furnishing.
4. Pursue a Prompt Payment Act claim. If the owner or GC withheld payment without a valid written dispute notice, you are entitled to 2% monthly interest plus attorney's fees under Fla. Stat. § 713.346. This makes litigation more viable even on smaller contracts because fee-shifting changes the math.
The critical point: your mechanics lien right only exists if you served a Notice to Owner (NTO) before or within 45 days of first furnishing labor or materials. If you missed that window, your lien right is gone — and with it, your most effective leverage.
How Does the Florida Prompt Payment Act Apply to Final Payment Deadlines?
The Florida Prompt Payment Act sets specific, enforceable deadlines that apply to the entire payment chain — owner to GC, GC to subcontractor, subcontractor to sub-subcontractor. For private projects, Fla. Stat. § 713.346 is the governing statute. For public projects, Fla. Stat. § 255.073–255.078 applies.
Here is the timeline for private projects:
- Owner to GC: Payment due within 14 days of the date payment becomes due per the contract
- GC to subcontractor: Payment due within 7 days of the GC receiving payment from the owner that covers the sub's work
- Subcontractor to sub-sub: Payment due within 7 days of receiving payment from the GC
If payment is late without a valid written dispute, the overdue party owes 2% per month interest on the unpaid balance. The Act also provides for attorney's fees to the prevailing party in a Prompt Payment Act dispute — which is a significant deterrent against bad-faith withholding.
The slow payment problem is not unique to Florida. According to Rabbet's 2024 Construction Payments Report, slow payments cost the U.S. construction industry an estimated $280 billion in 2024, adding roughly 14% to total construction spending. Florida's Prompt Payment Act is one of the stronger state-level tools for fighting this — but it requires subcontractors to understand the statute and enforce their rights proactively.
Florida lien deadline reference
Frequently Asked Questions
Does passing a final inspection guarantee I'll get paid in Florida?
No. Passing a government inspection confirms your work met code — it does not legally compel payment. Your payment rights come from your contract and Florida's Prompt Payment Act (Fla. Stat. § 713.346). If your contract ties payment to inspection passage, that helps your case. But passing inspection alone does not override missing NTO deadlines or other contract conditions.
How long does a Florida owner have to pay after the work is complete?
On a private project, 14 days from the date the payment obligation becomes due under Fla. Stat. § 713.346(1). On a public project, 20 days from receipt of a proper invoice following final inspection and approval under Fla. Stat. § 255.077. After those windows close without payment or a written dispute notice, interest accrues at 2% per month.
Can a GC use a "pay when paid" clause to delay my final payment indefinitely?
Not in Florida. Pay-when-paid clauses that would convert a GC's payment obligation into a conditional one that never matures are unenforceable under Florida's Prompt Payment Act. Once the GC receives payment for your work, they have 7 days to pay you under Fla. Stat. § 713.346(3). A true "pay if paid" clause — which shifts the risk of owner non-payment entirely to the sub — is a more contested legal issue and requires a construction attorney's review.
What can a Florida owner legally withhold at final payment?
An owner can withhold an amount proportionate to the value of specific, documented disputed work or uncompleted punch list items — but only if they send written notice of the dispute within the payment deadline window. Under Fla. Stat. § 713.346(7), retainage at final completion can only be withheld up to 150% of the estimated cost to complete remaining punch list items, not as a blanket holdback.
What happens if I missed the Florida Notice to Owner deadline?
If you did not serve a Notice to Owner within 45 days of first furnishing labor or materials on a private project, you have lost your mechanics lien rights under Fla. Stat. § 713.06(2)(c). You may still pursue a Prompt Payment Act claim or breach of contract claim, but your most powerful leverage — the property lien — is gone. This is why NTO filing on day one of every job is non-negotiable.
How do I enforce the Florida Prompt Payment Act as a subcontractor?
Start with a formal written demand that cites Fla. Stat. § 713.346 and states the specific overdue amount and the date payment became due. If that does not produce payment within a reasonable window, your options are filing a mechanics lien (if your NTO is in place), making a bond claim on a public project, or filing a civil lawsuit. The attorney's fee provision in the Prompt Payment Act makes retaining a construction attorney more viable because the losing party typically pays fees.
Does the Florida Prompt Payment Act apply to both residential and commercial projects?
Fla. Stat. § 713.346 applies to private commercial projects. Residential construction is also covered by Florida's Construction Industry Licensing Board requirements and general contract law, and the Prompt Payment Act's protections do extend to residential work. However, the specific application can vary based on contract terms, so consulting a construction attorney is advisable for complex residential payment disputes.
Can I charge interest if my Florida final payment is late?
Yes. Fla. Stat. § 713.346 entitles you to 2% per month on any amount that is overdue without a valid written good-faith dispute from the owner or GC. You are also entitled to reasonable attorney's fees if you prevail in a Prompt Payment Act claim. Document your invoice dates, payment due dates, and any correspondence carefully — you will need that record if you pursue interest or fees.
Protect Your Lien Rights Before the Job Is Done
By the time you are chasing final payment after an inspection, you are already in a defensive position. The subcontractors who get paid fastest are the ones who filed their Notice to Owner on day one — because the owner knows a lien is on the table from the start.
LienFlash files your Florida Notice to Owner in under 2 minutes: attorney-reviewed, state-compliant, sent via USPS Certified Mail with a Certificate of Mailing PDF you can use as proof in court. At $24.99 per notice, it is the cheapest insurance policy in construction.
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