As of July 1, 2026, a Florida contractor who receives payment for work a subcontractor performed and does not pay that subcontractor within 45 days risks losing a professional license. Florida’s new subcontractor payment law, Fla. Stat. § 489.1295, is the first statute to impose licensing consequences for nonpayment on private construction projects. Enacted through CS/CS/CS/SB 290 (Chapter 2026-3), the law subjects knowing or willful violations to disciplinary proceedings under Fla. Stat. § 489.129, where penalties range from fines of up to $10,000 per violation to outright license revocation.
Southron Firm, P.A. is a Tampa, Florida litigation firm that represents contractors, subcontractors, and developers in construction payment disputes.
This article explains what the Florida subcontractor payment law requires, where its language leaves room for contested proceedings, and what both sides should do before a dispute reaches the licensing board.
What Florida’s New Subcontractor Payment Law Requires
Licensed contractors must compensate subcontractors or suppliers within 45 days of receiving payment for the work those subcontractors or suppliers performed. If the subcontract specifies a different payment timeline, the contract terms control instead. The only exception is a bona fide dispute regarding the amount due.
The statute creates two possible deadlines:
- The default is 45 days from the date the contractor receives payment from the owner or upstream party for work the subcontractor furnished.
- If the subcontract contains its own payment terms, those terms govern.
In either case, the contractor’s obligation to pay arises only after the contractor itself has been paid. A subcontractor whose general contractor has not yet received payment from the owner cannot use this statute to accelerate a claim.
Subcontractor: A contractor who performs labor and supplies material on behalf of another contractor in the construction or remodeling of real property, as defined in Fla. Stat. § 558.002.
Supplier: A person who provides only materials, equipment, or other supplies for the construction or remodeling of real property, as defined in Fla. Stat. § 558.002.
Both definitions come from § 558.002. The same terms Florida courts have applied in construction defect disputes under Chapter 558 now control who qualifies for protection under § 489.1295.
How This Law Differs from Existing Payment Protections
Before July 2026, a subcontractor on a private Florida construction project who went unpaid had two primary tools: a mechanic lien under Chapter 713 and a breach of contract claim. Neither carried licensing consequences for the contractor who withheld payment. Section 489.1295 adds a third path. It is the only one that puts a contractor’s license at risk.
| Protection | Statute | Applies To | Payment Deadline | Consequence |
|---|---|---|---|---|
| New Subcontractor Payment Law | Fla. Stat. § 489.1295 | Private projects | 45 days after contractor receives payment | License discipline, fines up to $10,000, suspended vendor list |
| Prompt Payment (Public) | Fla. Stat. § 218.735 | Public projects | 25 days (local) / 30 days (state) | Interest at 1% per month, attorney fees |
| Mechanic Lien | Fla. Stat. Chapter 713 | Private projects | None (90 days to file lien) | Lien on property, foreclosure action |
| Breach of Contract | Common law | All projects | Per contract terms | Damages, attorney fees if contract provides |
The remedies are not mutually exclusive. A subcontractor can file a mechanic lien under Chapter 713, pursue a breach of contract claim, and file a licensing complaint under § 489.1295 at the same time. The licensing complaint does not require a lawsuit or proof of damages. It requires evidence that the contractor received payment and failed to pass it through within the statutory window.
The “Bona Fide Dispute” Exception Under Florida’s Subcontractor Payment Law
The statute’s one exception to the payment deadline is a “bona fide dispute regarding the amount due.” The term is not defined. No Florida court has interpreted it in this context, and the statute provides no criteria for distinguishing a genuine disagreement from a pretextual withholding. That gap will be resolved through contested DBPR proceedings and, eventually, court decisions reviewing those outcomes.
In other Florida statutes, “bona fide dispute” has been construed to require a genuine factual disagreement, not a strategic delay. Under Chapter 218, Florida’s prompt payment law for public construction, disputes must relate to the quality or quantity of work performed, and the undisputed portion must still be paid. Whether DBPR administrative proceedings will apply a similar standard to § 489.1295 complaints remains an open question.
Contractors who withhold payment should expect scrutiny on two points: whether the dispute was documented before the complaint was filed, and whether the undisputed portion was paid. A contractor who receives $200,000 from an owner, disputes $30,000 of a subcontractor’s work, and withholds the entire $200,000 faces a stronger licensing complaint than one who pays the $170,000 and contests only the disputed amount.
A Southron Firm, P.A. construction litigation attorney can evaluate whether a payment withholding rises to the level of a knowing violation or falls within a defensible dispute.
Penalties for Contractors Who Violate § 489.1295
A knowing or willful violation triggers disciplinary proceedings under Fla. Stat. § 489.129. The Construction Industry Licensing Board may impose any of the following penalties:
- Revocation or suspension of the contractor’s license, with a five-year bar on reapplication after revocation under § 489.129(9)
- Administrative fines of up to $10,000 per violation
- Probation with conditions, including mandatory continuing education
- Financial restitution to the subcontractor or supplier
- Assessment of investigation and prosecution costs against the contractor
- Placement on Florida’s suspended vendor list under Fla. Stat. § 287.1351, barring the contractor from state and local government contracts
Two features narrow the statute’s reach. The violation must be knowing or willful; an inadvertent accounting delay is not disciplinable under this section. And the statute applies only to licensed contractors. Unlicensed contracting carries its own penalties under Fla. Stat. § 489.127, but an unlicensed party is beyond this enforcement mechanism.
What Subcontractors and Contractors Should Do Now
Subcontractors should document the date their general contractor receives payment from the owner. Contractors should define “bona fide dispute” in every subcontract before the term is defined for them in a licensing proceeding.
For subcontractors:
- Track payment flow. Note when the owner pays the GC and when the GC pays you. The clock under the Florida subcontractor payment law runs from the GC’s receipt, not from the date you submitted your invoice.
- Preserve written communications about disputed amounts. A licensing complaint supported by contemporaneous emails carries more weight than an oral account.
- File the complaint with DBPR if 45 days pass without payment and no bona fide dispute applies. This remedy exists on a separate track from your mechanic lien rights and can proceed alongside one.
- Continue protecting lien rights under Chapter 713. The new statute does not replace lien deadlines. A subcontractor who relies on the licensing remedy alone may forfeit the 90 days the statute allows to record a construction lien.
For contractors:
- Calendar the statutory deadline from the date you receive payment from the owner or upstream party. The 45 days run from receipt, not from approval of the subcontractor’s invoice.
- Define “bona fide dispute” in your subcontracts. Specify what constitutes a dispute, how it must be documented, and what happens to undisputed amounts during the dispute period.
- Pay undisputed amounts while contesting disputed charges. Withholding more than the genuinely disputed amount weakens your position in any licensing proceeding.
- Document every dispute as it arises. Notes written after a complaint is filed carry less weight than records created when the disagreement surfaced.
If a subcontractor has filed a licensing complaint against your contracting business, or if you are a subcontractor who has not been paid within the statutory window, contact a Florida construction attorney before the dispute escalates.
When to Contact a Construction Attorney
Any contractor or subcontractor who receives notice of a DBPR complaint under § 489.1295 should consult an attorney before responding. Under Fla. Stat. § 489.129(12), the Department must provide the contractor with the details of the complaint, and the response window is limited.
These situations call for legal counsel:
- A subcontractor has gone unpaid beyond 45 days and the contractor has already received payment from the owner.
- A contractor receives a DBPR complaint and must prepare a written response.
- A contractor wants to withhold payment and needs to establish a defensible bona fide dispute before the deadline runs.
- A subcontractor is deciding whether to pursue a mechanic lien, a licensing complaint under § 489.1295, or both.
- A contractor’s existing subcontract payment terms conflict with the statutory default of 45 days.
Frequently Asked Questions
Q: How long does a contractor have to pay a subcontractor in Florida? A: Under Fla. Stat. § 489.1295, a licensed contractor must pay within 45 days of receiving payment for the subcontractor’s work. If the subcontract specifies different terms, the contract controls. The deadline runs from receipt of payment, not from the invoice date.
Q: Can a Florida contractor lose their license for not paying subcontractors? A: Yes. A knowing or willful violation of § 489.1295 triggers disciplinary proceedings under § 489.129. Penalties include license suspension, license revocation with a five-year reapplication bar, and administrative fines up to $10,000 per violation.
Q: Does the Florida subcontractor payment law apply to both residential and commercial projects? A: Yes. Section 489.1295 applies to all private construction work performed by a licensed Florida contractor. It covers residential, commercial, and industrial projects. Public construction projects are governed separately by Fla. Stat. § 218.735.
Q: Can a subcontractor file both a mechanic lien and a licensing complaint? A: Yes. A mechanic lien under Chapter 713 secures a property interest enforced through foreclosure. A licensing complaint under § 489.1295 triggers administrative discipline against the contractor’s license. The two remedies operate on separate tracks, and both can proceed simultaneously.
Q: What qualifies as a “bona fide dispute” under § 489.1295? A: The statute does not define the term. In comparable Florida construction statutes, a bona fide dispute requires a genuine disagreement about the amount, quality, or scope of work performed. A pretextual withholding without documented basis is unlikely to qualify.
Q: Does the 45-day clock start from the invoice date or from when the contractor gets paid? A: From when the contractor receives payment from the owner or upstream party for the subcontractor’s work. The invoice date and the date the work was completed are irrelevant to the statutory calculation.
Q: Can an unlicensed contractor be disciplined under this statute? A: No. Section 489.1295 applies only to licensed contractors. An unlicensed contractor faces separate penalties under Fla. Stat. § 489.127 but cannot be disciplined through the licensing framework this statute creates.
Q: What is the penalty for placement on Florida’s suspended vendor list? A: Placement on the suspended vendor list under Fla. Stat. § 287.1351 bars the contractor from bidding on or receiving state and local government contracts. For contractors who depend on public work, this consequence can be more damaging than a fine.
Key Takeaways
- Fla. Stat. § 489.1295, effective July 1, 2026, requires licensed contractors to pay subcontractors within 45 days of receiving payment or according to contract terms.
- Knowing or willful violations trigger disciplinary action under Fla. Stat. § 489.129, with penalties ranging from fines up to $10,000 to license revocation.
- The statute’s “bona fide dispute” exception is undefined, and the standard will be shaped through future DBPR administrative proceedings.
- The licensing remedy is separate from mechanic lien rights and breach of contract claims. Subcontractors can pursue all three simultaneously.
- Contractors should define “bona fide dispute” in every subcontract and document disputes in writing as they arise.
- Subcontractors should track when their general contractor receives payment from the owner, because that date starts the 45-day clock under the Florida subcontractor payment law.
- Placement on Florida’s suspended vendor list under § 287.1351 bars the contractor from government contracts.
If you are a contractor facing a licensing complaint or a subcontractor who has not been paid within the statutory deadline…
Legal Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. The information contained herein is based on Florida law as of the publication date and may not reflect recent changes. Laws vary by jurisdiction and circumstance, and no single article can address every situation. Do not rely on this article as a substitute for professional legal counsel. If you face a legal matter related to the topics discussed, contact an attorney licensed in Florida to review your specific facts and circumstances. Southron Firm, P.A., is a Florida law firm based in Tampa. For a consultation regarding your litigation or estate planning matter, contact our office.