Stricter Rules on the Way for Florida Contractors and Subcontractor Payments

Money is a huge issue in the construction industry. There seems to never be enough to go around. Many people in the supply chain do not get paid in a timely manner, causing issues with contractors, subcontractors, and homeowners.

A new law has been passed to help with this issue. Florida is rolling out stricter rules aimed at contractors who fail to pay subcontractors, and the changes could impact homeowners, builders, and small businesses alike.

Under Senate Bill 290, which takes effect July 1, contractors must pay subcontractors and suppliers on time or face serious consequences. Once a contractor receives payment for work, they generally have 45 days to pay subcontractors, unless the contract sets a different timeline.

Before the bill was approved, state law put any vendor in default on any contract with a state agency on a “suspended vendor list.” This would make it so vendors would not be awarded future state contracts. Now, a contractor who does not pay subcontractors or suppliers in a timely manner can also earn a place on the suspended vendor list.

If subcontractors do not get paid, the penalties are no longer just civil. They can be criminal as well. Failing to pay without a legitimate dispute can lead to misdemeanor charges, or even a third-degree felony if the unpaid amount is $20,000 or more.

The law also adds professional consequences. Contractors who violate these rules may be placed on a suspended vendor list, which can prevent them from securing future state contracts. Because a contractor’s license is essential to their business, the risk of disciplinary action creates a strong incentive to comply.

Another key change is that the law clearly defines who qualifies as a “subcontractor” or “supplier,” helping standardize enforcement and reduce disputes over who is protected:

• Subcontractor: a contractor performing labor and supplying material on behalf of another contractor for construction/remodeling of real property
• Supplier: a person who provides only materials, equipment, or supplies for construction/remodeling of real property

For consumers and property owners, this new law matters because unpaid subcontractors often file construction liens against the property, even if the homeowner already paid the general contractor. By pressuring contractors to pay on time, the law aims to reduce those situations and prevent project delays.

In short, the new rules close a long-standing gap in Florida law by turning nonpayment into a punishable offense. The goal is to protect smaller businesses, keep construction projects moving, and ensure accountability throughout the payment chain.

Contact Us Today

Non-payment for subcontractors is a major issue. The construction industry is unfortunately rife with fraud from contractors who take money without completing projects. The new law is supposed to help in this regard.

A Florida contractor representation lawyer from Linkhorst Law Firm can help you handle payment issues, delays, and other construction-related legal concerns. Schedule a consultation today by filling out the online form or calling 561-626-8880.

Source:

news4jax.com/news/florida/2026/03/24/new-penalties-for-contractors-who-dont-pay-subcontractors-take-effect-july-1-so-what-does-that-mean-for-you/