Under Florida Statutes Chapter 713, a contractor must serve a Notice to Owner within how many days of first furnishing labor or materials to preserve lien rights?
Correct Answer
C) 45 days
Florida Statutes Chapter 713 requires that contractors who do not have a direct contract with the owner must serve a Notice to Owner within 45 days of first furnishing labor or materials to preserve their lien rights.
Why This Is the Correct Answer
Florida Statutes Chapter 713.06 specifically requires contractors who do not have a direct contract with the property owner to serve a Notice to Owner within 45 days of first furnishing labor, services, or materials to the improvement. This notice is crucial for preserving lien rights and must be served on the owner and posted on the property. The 45-day timeframe is strictly enforced, and failure to comply within this period results in the loss of lien rights. This requirement applies to subcontractors, sub-subcontractors, and material suppliers who are not in direct contractual relationship with the owner.
Why the Other Options Are Wrong
Option A: 60 days
30 days is too short and not the timeframe specified in Florida Statutes Chapter 713 for Notice to Owner requirements
Option D: 90 days
60 days exceeds the statutory requirement and would not preserve lien rights if relied upon
Memory Technique
Remember '45 Notice' - think of a .45 caliber gun giving notice, or 'Forty-Five Notice' as a rhyming phrase to lock in the 45-day requirement for Notice to Owner
Reference Hint
Florida Statutes Chapter 713 - Construction Liens, specifically Section 713.06 regarding Notice to Owner requirements
More Business & Finance Questions
A general contractor purchases equipment worth $45,000 with a useful life of 9 years and no salvage value. Using straight-line depreciation, what is the annual depreciation expense?
What is the typical recommended coverage amount for general liability insurance for a small to medium-sized general contracting business?
A contractor estimates startup costs of $75,000 for equipment, $25,000 for initial inventory, $15,000 for insurance premiums, and $10,000 for working capital. They can finance 70% of the total. How much cash do they need?
When establishing professional relationships with architects and engineers, what is the most important factor for a general contractor to consider?
A partnership agreement for a construction company should address all of the following EXCEPT:
A contractor purchases a truck for $60,000. After 5 years, it has accumulated depreciation of $35,000. What is the truck's book value?
A contractor's business plan projects first-year revenue of $500,000 with a 15% net profit margin. If actual revenue is $450,000 with the same profit margin, what is the variance in net profit?
Using the Modified Accelerated Cost Recovery System (MACRS), construction equipment is typically depreciated over how many years?
A contractor is comparing financing options for equipment purchase. Option A: $80,000 cash purchase. Option B: $20,000 down, $65,000 financed at 6% for 4 years. What is the total cost of Option B?
A contractor purchases equipment using a capital lease with a present value of $120,000. How should this be recorded on the balance sheet?
People Also Study
Related Study Resources
Previous Question
A commercial project has a total contract value of $500,000. To date, costs incurred are $180,000 and the project is estimated to be 40% complete. Using the percentage-of-completion method, what is the gross profit recognized to date?
Next Question
A contractor employs 8 workers and pays $125,000 in annual wages. If the workers' compensation rate is $3.50 per $100 of wages, what is the annual premium?