A Guide To Construction Law For HOA & COA Board Members In Florida

Tom, the newly elected president of his community’s condo association in sunny Florida. Tom’s been a homeowner for years, but stepping into the role of board president opened his eyes to the complexities of managing a community. One of the most daunting tasks he faced early on was overseeing a major construction project. With limited experience in construction law, Tom quickly realized he needed to get up to speed—fast.

If you’re like Tom and want to protect your community from legal pitfalls while ensuring your construction projects are completed successfully, this guide is for you. And remember, having an experienced construction lawyer on your side can make all the difference. Contact us at Herman & Wells today to ensure your association’s projects are legally sound and financially secure.

Tom’s first big project as president was overseeing the construction of a new clubhouse. While he was excited about the project’s potential to enhance the community, he also felt overwhelmed by the legal responsibilities that came with it. Like Tom, many board members may not realize that overseeing construction involves more than just selecting a contractor and approving designs. Florida’s construction laws are complex, and failing to comply with them can lead to serious consequences for both the board and the community.

For Tom, understanding his legal responsibilities was crucial. As a board member, you’re tasked with ensuring that construction projects are conducted in accordance with Florida law and the community’s governing documents. This includes everything from contract negotiations to ensuring compliance with building codes. Failure to uphold these responsibilities can result in legal liabilities that could have been avoided with the right knowledge and preparation.

Florida has specific statutes and regulations that govern construction projects, especially those involving HOAs and COAs. For example, the Florida Statutes Chapter 718 (for condos) and Chapter 720 (for HOAs) outline the duties of board members, including their role in managing construction projects. Additionally, the Florida Building Code sets the standards for construction, and non-compliance can result in fines, project delays, or worse—unsafe structures.

Tom learned that one of the most important aspects of his role was to ensure that all construction activities complied with these regulations. Understanding these laws helped him avoid potential legal pitfalls and ensured that the project proceeded smoothly.

Tom’s involvement in the construction project wasn’t just about making decisions; it was about leadership and oversight. As a board member, your role extends beyond attending meetings and signing off on plans. You’re responsible for:

• Ensuring Compliance: Making sure that all aspects of the construction comply with state and local laws, as well as the association’s governing documents.

• Contract Management: Overseeing the drafting, review, and enforcement of construction contracts.

• Risk Mitigation: Identifying potential legal risks and taking steps to mitigate them, such as hiring a qualified construction attorney.

Tom quickly realized that with great power comes great responsibility—and potential liability. If something goes wrong during a construction project, board members could be held personally liable if they fail to act in the best interest of the community. This is where risk mitigation strategies come into play. By following best practices, seeking expert advice, and ensuring compliance with all relevant laws and regulations, you can protect yourself and your community from legal repercussions.

Knowing when to bring in a construction lawyer was one of Tom’s best decisions. A construction lawyer can provide invaluable assistance at every stage of your project, from initial planning to final inspection. They can help with drafting and reviewing contracts, ensuring compliance with building codes, and resolving disputes that arise during or after the project.

Tom decided to hire a construction lawyer early in the project, which proved to be a smart move. A construction lawyer can:

• Review Contracts: Ensuring that contracts are fair and protect the association’s interests.

• Provide Legal Guidance: Offering advice on compliance with state laws and regulations.

• Handle Disputes: Representing the association in case of a legal dispute with contractors or other parties.

Finding the right construction attorney is crucial. Tom’s approach was to look for an attorney with experience in Florida construction law and a deep understanding of the unique needs of HOAs and COAs. The right attorney will not only have the legal expertise but will also be familiar with the specific challenges that community associations face.

Tom’s lawyer played a key role in managing contracts and negotiations with the contractor. Construction contracts are complex documents that require careful review. They must include specific clauses that protect the association’s interests, such as warranties, indemnity clauses, and deadlines. A well-drafted contract can prevent many disputes and provide clear guidelines for resolving any issues that arise.

Critical clauses in construction contracts for HOAs and COAs include:

• Scope of Work: Clearly defining what the contractor is expected to do.

• Payment Terms: Outlining when and how payments will be made.

• Warranties: Ensuring that the contractor is responsible for correcting any defects.

• Dispute Resolution: Establishing a process for resolving disputes without going to court.

Tom’s attorney ensured that all these clauses were included in the contract, providing a solid foundation for the project.

Despite the best planning, disputes can still arise. Tom’s project faced a delay when the contractor ran into unexpected issues with the site. Fortunately, the contract had a clear dispute resolution clause, and Tom’s attorney was able to negotiate a solution that kept the project on track. Common disputes include:

• Delays: Disagreements over timelines and deadlines.

• Quality of Work: Issues with the quality of the materials or workmanship.

• Payment Disputes: Conflicts over the cost of the project or payment schedules.

Handling these disputes promptly and professionally is key to minimizing their impact on the project.

Tom’s experience taught him that preventive practices are crucial. By conducting thorough inspections, hiring reputable contractors, and ensuring that all work complies with Florida’s building codes, you can avoid many legal complications. Preventive practices include:

• Regular Inspections: Ensuring that construction is progressing as planned.

• Contractor Vetting: Hiring contractors with a strong track record and proper licenses.

• Legal Oversight: Having an attorney review all contracts and compliance documents.

Unfortunately, not all projects go smoothly. If construction defects are discovered after the project is completed, litigation may be necessary. Tom’s community faced this issue when they found leaks in the new clubhouse roof. Addressing construction defects early and working with a lawyer to resolve them can prevent small issues from becoming big problems.

The sooner you identify construction defects, the better. Regular inspections and prompt attention to any issues can prevent defects from causing serious damage. Tom’s lawyer helped the community address the roof leaks quickly, minimizing the cost and disruption.

Compliance with Florida building codes is non-negotiable. Non-compliance can lead to fines, project delays, and even legal action. Tom’s lawyer ensured that all aspects of the project met Florida’s strict building standards, protecting the community from future liability.

Tom learned that compliance isn’t just about meeting codes at the start of the project; it’s about ensuring compliance throughout the entire construction process. Regular check-ins with contractors and ongoing legal oversight helped keep the project on track.

The consequences of non-compliance can be severe, including costly fines, legal action, and the need for expensive repairs. For Tom, ensuring compliance was about protecting the community’s investment and avoiding unnecessary legal battles.

Tom’s role also involved managing the financing for the project. Protecting the association’s funds is critical, especially when dealing with large construction projects. Working with a construction lawyer can help ensure that funds are managed properly, contracts are adhered to, and the community’s financial interests are protected.

Tom’s story is a testament to the importance of legal guidance in construction projects. Whether you’re embarking on a new project or dealing with the aftermath of construction defects, having the right legal support can make all the difference.

Empower your association with expert legal guidance contact Herman & Wells today to discuss your needs and ensure your community’s projects are handled with care and expertise. Call (727) 877-3471 or use our online form to schedule a free consultation today.