Controlling Risk in the Time of Tariffs: Part 2

Posted: May 1st, 2025

By: Mark Siemer

As tariffs continue to loom over the construction industry and threaten to disrupt supply chains it is important for Contractors to adapt their contracts to protect themselves. Especially subcontractors who can’t start work until imported materials are delivered or who begin their scope of work later in the construction schedule for the project.

Why? Because Florida Statute 489.126 can turn delay into a crime.

Understanding Florida Statute 489.126

Florida Statute 489.126 addresses the issue of contractor liability in cases where construction projects are delayed or abandoned. If a Contractor receives 10% of the contract price the Contractor MUST apply for any necessary permits within 30 days of receiving payment and MUST start work within 90 days after all necessary permits have been issued. If the Contractor cannot meet these deadlines there is the possibility that the Contractor could be found guilty of a first-, second- or third-degree felony.

Contracting With Statute 489.126 in Mind

The statute allows the Contractor and Owner to agree to a longer term to start the contract. A simple revision or addendum can be prepared to notify the Owner of why it might take longer than 30 days to apply for permit or why it might take longer than 90 days after permits are issued to start work and to set an extended timeframe to complete those tasks. For example, if you are engaged to build a pool as part of a new construction, you might be given a deposit to order materials but not be given a start date by the general contractor because certain tasks must be performed before you can begin. Another common example includes when you cannot apply for permits within 30 days of takin ga deposit because the plans are still being prepared by an architect or engineer.

Having a one-page addendum ready to be filled in by the salesperson extending the deadlines is a cheap way to avoid threats of criminal prosecution as well as the adverse inferences the statute authorizes in civil cases.

Conclusion

As Tariffs continue to loom over the construction industry the chance of litigation goes up as does the likelihood that section 489.126 of the Florida Statute goes from being a posturing tactic to a real threat. Taking a few minutes to consult with an attorney to prepare an addendum to your contract to address the possibilities of delays is an easy way to get ahead of this growing risk.