Florida’s Construction Defect Statute Chapter 558

Florida’s Construction Defect Statute, also known as Chapter 558, was created in 1996 to protect the rights of property owners and give them clear legal guidance when dealing with construction defects. This law provides a set of criteria that must be met for a successful claim against contractors or builders who fail to meet industry standards.

In 2021, the Florida Legislature made a number of changes to Chapter 558 that are now in effect. Most notably, they shortened the statute of repose from 10 years to 7 years for residential homes and townhomes. This allows homeowners to bring forth claims against contractors or builders within seven years of the completion date of their project.

Furthermore, the updated statute also includes provisions for model homes and clarified language for townhomes and condominiums. In addition, the amendments clarify which events trigger the statute of limitations and repose, ensuring that homeowners are aware of their rights under this law and providing them with more effective legal recourse.

Before we discuss the specifics of Chapter 558, it is important to understand what qualifies as a construction defect under this law. According to Section 558.002(5), F.S., a construction defect is defined as “any deficiency in the design, specifications, surveying, planning, supervision or observation of construction or preparation of construction plans and any resulting defect in the completed project that materially impairs the use, value, or safety of the project.”

Examples of construction defects include defective materials (check out our page on stucco defects for more context), code violations (check out our page about roof defects for common examples), and deviations from professional standards that result in a flawed structure or impaired use of a building. It is important to note that not all issues related to construction are considered defects. For example, if a contractor fails to abide by all contractual agreements, this in itself does not constitute a construction defect.

The Chapter 558 process begins with a notice of claim. The property owner must provide the contractor with written notification of the alleged construction defects. This notice allows the contractor to be aware of the claim and conduct an inspection if necessary.

Upon receipt of the notice, the contractor has 60 days to respond. Within this time frame, the contractor can offer to fix the defect, negotiate a settlement, or deny the claim altogether. This 60-day window is a critical juncture in the Chapter 558 process, offering an opportunity for resolution without court intervention.

The contractor has a significant role in the 558 process. They must assess the merit of the claim, possibly engaging expert consultants or subcontractors. The contractor’s response could involve offering to repair the defect, proposing a monetary settlement, or disputing the claim. The goal is to deal with the issue promptly and professionally to avoid potential litigation.

Subcontractors can be brought into the process by the contractor. They may be asked to inspect the defect, participate in repairs, or contribute to a financial settlement. As participants in the construction project, subcontractors share the responsibility for any identified defects.

If the parties cannot reach an agreement within the 60-day resolution window, the property owner may proceed with filing a lawsuit. It’s important to note that the failure to agree during the 558 process does not preclude the possibility of resolution—it merely signals the end of this particular method of resolution. Before entering into litigation, it’s recommended to seek advice from a legal professional experienced in Florida’s construction law.

As we’ve mentioned before, thorough contract document reviews and specific inspection protocols are essential for preventing defects from occurring in the first place.

It is also important to track corrective work and perform post-remedial inspections once repairs are completed. By documenting the conditions of corrected defect areas and comparing them with standards for acceptable work, you can catch any issues that may have arisen during the resolution process. Taking these proactive steps to maintain quality control can help protect your project from liability and ensure a smooth construction experience overall.

When it comes to resolving construction defects, prevention is always better than cure. By understanding Florida’s Construction Defect Statute, Chapter 558, and taking proactive steps to ensure quality control, you can protect your rights as a property owner and remain in compliance with Florida law.

Once your project has been completed, it is just as important to protect against potential defect claims in the future. One of the best ways to do this is by providing operations and maintenance manuals. These documents provide detailed instructions on how to maintain and operate the building correctly.

In addition, it is also good practice to document the conditions at project closeout. This includes a detailed inspection report, photographs of the completed work, and any other relevant documentation. Having this information on hand can help resolve disputes related to the quality of the work and protect against potential claims down the line.

Finally, conducting post-completion inspections is another way to reduce exposure to defect claims after project completion. During these inspections, you should look for any issues or code violations that may have gone unnoticed during the initial construction process. Keeping your projects up to date with building codes and regulations can help minimize your risk of future claims.

In recent years, Florida’s legislature has proposed changes to Chapter 558 in order to make the pre-suit process more effective. One of these changes is an emphasis on exhausting warranty claims before sending a notice of claim. This is intended to encourage vendors and contractors to work together to resolve disputes without resorting to litigation.

Other proposed changes include providing additional time for contractors to respond to notices of claim and requiring expert consultants to be identified before the notice is sent. All of these changes are intended to streamline the Chapter 558 process and make it more efficient.

It’s important to keep up with any developments in Florida’s construction law, as they could have an impact on your current or future projects. By understanding the pre-suit process and staying informed on upcoming changes to Chapter 558, you can ensure that your construction projects remain in compliance.