Improved Construction Practices Committee

The ICPC is the legislative arm of Florida’s NACM organizations.

The Improved Construction Practices Committee (ICPC) is a committee comprised of members from the two Florida-based NACM groups, SACM, and NACM Tampa.  The committee meets at least quarterly to discuss legislative and legal issues affecting Florida’s construction and credit industries, and to formulate positions on issues and a proactive legislative agenda. Our primary purpose is to promote good, sound and equitable legislation, as it pertains to the Notice to Owner, construction, and credit industries. The ICPC takes the lead on issues relating to notice to owner, payment, construction liens, and payment bonds, defeating legislation that would have significantly weakened these laws and passing legislation that addresses court decisions and other matters affecting the industry. Through the efforts of the ICPC and our lobbying team, substantial improvements are made to our state laws.

Formed more than a decade ago to advocate for Florida’s construction material supply industry, the ICPC has taken the lead on construction credit issues with passage of important reforms affecting construction liens, construction bonds, court procedures, judgment liens and general credit issues. 

The Purpose of the ICPC

Today’s business and legal environment no longer allows companies to sit back complacently and merely react to situations that occur. The time, the cost and the exposure to risk make such inaction prohibitive. Court decisions as well as the constant challenge to existing law requires that we become more aware and be in a stronger position to respond when challenged. The interim study being conducted during the summer of 2007 by the Senate Regulated Industries Committee to examine the consumer protections in Florida’s Construction Lien Law is the most current example of the continuing struggle the industry faces.  We must be active, informed and aware participants if we want to protect the interests of the construction credit industry.

Accomplishments of the ICPC include:

• Raised the jurisdiction of the Small Claims Court to $5000.00.
• Passed provisions which will allow building departments to create on-line building permit systems that are accessible by the public in a searchable format.
• Codified in statute that a claim of lien can be prepared by a lienor’s employee.
• Amended the lien law to emphasize that only the owner can sign a Notice of Commencement.
• Amended laws to clarify that temporary help firms do have lien rights.
• Amended lien law service provisions to provide for overnight and second-day delivery, new methods of postal service, and evidence of delivery in electronic formats.
• Amended the lien law to provide that instruments properly served by any allowed method that are returned unserved through no fault of the sender are considered served on the date sent.
• Created provisions which allow service of Notices to Owner and Notices to Contractor to be served under a 40-day rule which allows use of a postal mail log in lieu of return receipts.
• Amended the lien and bond laws to make lien service provisions applicable to all types of lien and bond documents, and created clear cross references.
• Amended the lien law to clarify that service on a partnership can be made by service on one of the partners.
• Amended the lien and bond laws to clarify that finance charges provided for by contract are a proper part of a lien or bond claim.
• Created protections for rental equipment companies including provisions which provide that the time for filing a claim of lien or serving a notice of nonpayment run from the date “the equipment was last on the job site and available for use” and a new 2007 provision that creates a prima facie case for the period of actual use of rental equipment, eliminating the need to prove “reasonable rental value” on every case.
• Added protections to conditional payment bond provisions which require a conditional bond to be listed in the notice of commencement as a conditional payment bond, require the bond to be recorded with the notice of commencement prior to commencement of the project, and require the bond to be clearly titled “Conditional Payment Bond” in order for the bond to be conditional.
• Defeated numerous bills that would have significantly weakened the Florida Construction Lien Law.
• Created criminal penalties for the fraudulent alteration of lien waivers and other lien law documents.
• Created statutory forms for a Contractor’s Final Payment Affidavit, lien and bond waivers, and provided that lienors cannot be forced to use a non-statutory waiver form.
• Strengthened laws for the prosecution of contractors who misapply construction funds.
• Added lien provisions that require prosecuting attorneys to notify DBPR when an action is instituted against a contractor for filing a fraudulent lien, misappropriating funds, or making a false statement.
• Addressed numerous unfavorable court decisions including the Allstar case, by clarifying in statute that a notice to owner that varies from the statutory form is valid as long as it includes all required warnings and information.
• Participated in the redrafting and passage of numerous other credit laws, including access to public records, protection and privacy of personal information, and creation of the statewide system for docketing judgments on personal property through the Florida Secretary of State.

The ICPC is committed to promoting quality and integrity in Florida’s construction credit industry.  

NACM of Florida, Inc., National Association of Credit Management of Florida, Inc., Southeastern Association of Credit Management, and SACM are all registered names and the property of National Association of Credit Management of Florida, Inc.