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<p class="MsoNormal">The use of the term “direct contract†in the proposed legislation is unfortunate as it is a defined term under 713.01(9) and refers only to a contract with an Owner. I recommend deletion of the term “direct†and replacing it with “a contractâ€.
Otherwise, the proposed change on its face will only apply to those in privity with the Owner (which is clearly not the intent behind the Bill).<o:p></o:p></p>
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<p class="MsoNormal"><b><span style="color:#63AD6D">Michael Gibbons</span></b><br>
<i><span style="font-size:10.0pt">Shareholder</span></i><span style="font-size:10.0pt"><br>
215 N. Eola Dr. | Orlando, FL 32801</span><br>
<b><span style="font-size:10.0pt">D: </span></b><span style="font-size:10.0pt">407.418.6378</span> <span style="font-size:10.0pt">|
<b>P:</b></span><b> </b><span style="font-size:10.0pt">407.843.4600 </span><br>
<span style="font-size:10.0pt;color:black"><a href="mailto:Michael.Gibbons@lowndes-law.com" title="Click to send email to Gibbons, Michael"><span style="color:black">Email</span></a></span> <span style="font-size:10.0pt;color:black">|
<a href="http://lowndes-law.com"><span style="color:black">Website</span></a></span> <span style="font-size:10.0pt;color:black">|
<a href="lowndes-law.com/people/Michael-Gibbons"><span style="color:black">Bio</span></a></span><b> </b><span style="font-size:10.0pt;color:black">|
<a href="https://lowndeslaw.dpmlocal.com/admin/vcard/generate.php?id=64"><span style="color:black">vCard</span></a></span><o:p></o:p></p>
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<p class="MsoNormal"><b><span style="font-size:9.0pt;color:#1F497D"><img border="0" width="141" height="23" style="width:1.4687in;height:.2395in" id="_x0000_i1026" src="cid:image001.png@01D70B7A.C7AEDB40"></span></b><o:p></o:p></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;color:black">LOCAL ROOTS. BROAD REACH.
</span></b><b><sup><span style="font-size:9.0pt;color:black">SM</span></sup></b><o:p></o:p></p>
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<p class="MsoNormal"><b>From:</b> clc-discussion-bounces@lists.flabarrpptl.org <clc-discussion-bounces@lists.flabarrpptl.org>
<b>On Behalf Of </b>RPPTL CLC-Discussion<br>
<b>Sent:</b> Thursday, February 25, 2021 1:04 PM<br>
<b>To:</b> clc-discussion@lists.flabarrpptl.org<br>
<b>Cc:</b> Bob Swaine (bob@heartlandlaw.com) <bob@heartlandlaw.com><br>
<b>Subject:</b> [CLC-Discussion] Construction Liens and Bonds - CS/SB 622 and HB 473<o:p></o:p></p>
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<p class="MsoNormal" style="line-height:12.0pt"><b><span style="font-size:10.0pt;color:red">CAUTION: THIS IS AN EXTERNAL EMAIL
<o:p></o:p></span></b></p>
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<p class="MsoListParagraphCxSpFirst"><span style="font-size:14.0pt;line-height:105%">This is the bill summary, and it sounds benign:
<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle"><span style="font-size:14.0pt;line-height:105%"><o:p> </o:p></span></p>
<p class="MsoListParagraphCxSpLast">“The bill provides that provisions of waivers and releases are unenforceable unless the claimant has otherwise agreed to those provisions in its direct contract. The statutory forms include a form to acknowledge payment for
labor, services, or materials and a form waiver or release of a lien or the waiver of the right to make a claim against the contractor’s payment bond. Accordingly, provisions included in a waiver or release that release a party from other liabilities or waive
other rights are unenforceable under the bill.†<o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red">But beware – now the onus is on everyone to read the “extra†provisions that will appear in contracts that can allow “anything†to be added to a waiver and release.
<u>Lots of room for mischief</u>. We no longer have a standard NNP or lien release.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red">We have the “Person who is holding the power, has the lawyers and holds the money-releases†and the plain release for the unwashed masses.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red">Is this a backdoor change by the surety industry to get what they could not get last time around? A bonded job will say that the Contract Documents include the Prime Contract and all attachments.
Buried in there will be language making changes on what needs to be in a NNP. We will see an explosion in litigation is my guess when sureties deny claims as being improper.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;color:red">New language: <o:p>
</o:p></span></p>
<p class="MsoNormal">(<span style="font-family:"Courier New"">d) A person may not require a claimant to furnish a waiver that is different from the forms in paragraphs (b) and (c) in exchange for, or to induce payment of, a progress payment or final payment
<u>unless the claimant has entered into a direct contract that requires the claimant to furnish a waiver that is different from the forms in paragraphs (b) and (c).
</u><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Courier New"">(f) Any provisions in a waiver which are that is not related to the waiver of a claim or a right to claim against a payment bond as provided in this subsection are unenforceable,
<u>unless the claimant has otherwise agreed to those provisions in the direct contract</u>.</span><span style="font-size:14.0pt;color:red">â€<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:14.0pt;color:#2F5496"><o:p> </o:p></span></p>
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<p class="MsoNormal"><a href="https://protect-us.mimecast.com/s/-VvxCqxMQrT8l8p2HZqMqA/"><span style="color:#2F5496;text-decoration:none"><img border="0" width="671" height="231" style="width:6.9895in;height:2.4062in" id="Picture_x0020_27" src="cid:image002.png@01D70B7A.C7AEDB40"></span></a><span style="color:#2F5496"><o:p></o:p></span></p>
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