Under Florida Statute 713, if an owner receives a Notice to Owner from a contractor, the owner should:
Correct Answer
C) Be aware that the contractor has potential lien rights
The Notice to Owner serves to inform the property owner that a contractor has furnished labor or materials and has potential lien rights. It's an informational notice that preserves the contractor's lien rights.
Why This Is the Correct Answer
The Notice to Owner is a formal notification required under Florida Statute 713 that serves as a warning to property owners about potential lien rights. When an owner receives this notice, it means the contractor or supplier has provided labor, services, or materials to the property and is preserving their right to file a construction lien if not paid. The notice doesn't require any immediate action from the owner other than awareness of the potential lien exposure. This is purely an informational document that protects the contractor's lien rights while alerting the owner to the situation.
Why the Other Options Are Wrong
Option A: Immediately stop all work on the project
There is no requirement to stop work when receiving a Notice to Owner. The notice is informational and doesn't indicate any problem with the project - it's simply preserving lien rights.
Option B: Require the contractor to post a bond
The owner does not file the Notice to Owner with the clerk of court. The contractor is responsible for serving the notice to the owner, and if they later file a lien, that lien gets recorded with the clerk.
Option D: File the notice with the clerk of court
The Notice to Owner does not trigger any bonding requirement. Bond requirements are typically established in the original contract or by other statutory provisions, not by receipt of this notice.
Memory Technique
Think 'Notice = Knowledge' - the Notice to Owner simply gives the owner knowledge/awareness of potential lien rights, nothing more.
Reference Hint
Florida Statute 713 - Construction Liens, specifically sections dealing with Notice to Owner requirements and lien preservation
More Contract Admin Questions
A project experiences a 30-day delay due to unusually severe weather. The contract includes a liquidated damages clause of $1,000 per day for delays. If the weather delay is excusable but not compensable, what liquidated damages apply?
A commercial project requires a total of 12 inspections. The building department charges $85 per inspection for the first 5 inspections, $65 for inspections 6-10, and $45 for any additional inspections. What is the total inspection fee?
What document must be posted at the job site before a Certificate of Occupancy can be issued for a commercial building?
A mixed-use development requires a variance for reduced setbacks. The property is located within 500 feet of a hospital. What additional consideration must be addressed?
A LEED project requires tracking of regional materials. Materials are considered regional if they are extracted, harvested, or recovered, as well as manufactured within what distance of the project site?
An indemnification clause in a construction contract typically requires the contractor to:
A property owner wants to convert a single-family home into a duplex in an area zoned for single-family residential use. The conversion meets all building codes but violates density requirements. What approval is needed?
As-built drawings are typically required to be submitted:
AIA Document A401 is primarily used for:
A general contractor is building a 12,000 square foot commercial warehouse. The building permit fee is calculated at $8.50 per $1,000 of construction value. If the project value is $2,400,000, what is the building permit fee?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
A commercial project requires a zoning variance for building height. The current zoning allows 35 feet maximum, but the project requires 42 feet. What is the first step in the variance process?
Next Question
Which sustainable construction practice contributes to LEED Water Efficiency credits?