florida’ SneW“ promptproCeSSinG” requirement
Construction law Section Co-Chairs: AlexSarsfield – Adams & ReeseLLP & MartiniqueSmith – CarltonFields
Florida’ s“ Local Government Prompt Payment Act” provides prompt payment procedures for local governments and establishes a dispute resolution process for contested payments. 1 Section 2, Chapter 2025-140, Laws of Florida, adds to this statutory scheme by creating Fla. Stat. § 218.755, requiring“ prompt processing” of change orders requested by a local government from its contractor.
Fla. Stat. § 218.755 seeks to eliminate the cost burden on contractors for public ownerrequested( but unapproved) change orders, by imposing a change order processing requirement that is analogous to the pay request process under Florida’ s Local Government Prompt Payment Act. In response to a requested or issued change order, local governments are now required to provide written notice to a contractor either approving or denying a price quote meeting all statutory and contractual requirements within thirty-five days of receipt. 2
If the local governmental entity denies the received price quote, it must specify the alleged deficiencies in the quote and the actions necessary to remedy those deficiencies. 3 Importantly, if the local governmental entity fails to provide the contractor with written notice either approving or denying a received price quote, the price quote
and the corresponding change order are deemed approved, and the local governmental entity must pay the contractor the amount stated in the price quote upon completion of the change order work. 4
Fla. Stat. § 218.755 also prohibits local governments from using contracts to alter its prompt processing provisions for change order requests. 5 These provisions apply to contracts for construction services entered into on or after July 1, 2025. 6
While Fla. Stat. § 218.755 is situated within the Local Government Prompt Pay Act, its“ prompt processing” provisions differ from the“ prompt payment” provisions in Fla. Stat. § 218.735( 2025) in at least one material respect. Unlike Fla. Stat. § 218.735( 2), which defines the date of receipt for an invoice or payment request as the date on which it is stamped as received, Fla. Stat. § 218.755 includes no such reference. As such, local governments might consider defining when a price quote is deemed received, either by contract or local ordinance. In doing so, local governments should be careful to not impose any requirements that could be
localgovernments arenowrequiredto respondtoprice quotesforrequested changeorderswithin 35days.
construed to alter( e. g., extend or prolong) the thirty-five-day deadline for acceptance or rejection in Fla. Stat. § 218.755. As a starting point, local governments might look to their already“ establish [ ed ] procedures whereby each payment request or invoice received by the local governmental entity is marked as received” to reflect receipt of the price quote. 8 n
1
Fla. Stat. § 218.71( 2024).
2
Fla. Stat. § 218.755.
3
Id.
4
Id.
5
Id.
6
Id.
7
See Fla. Stat. § 218.74( 1).
8
Victor Rosado— a rising third-year law student at Georgetown University Law Center and 2025 summer associate with Carlton Fields— assisted with the preparation of this article.
Authors: Brett Henson – Carlton Fields, P. A. & Victor Rosado 8 – Georgetown University Law Center Student( Not pictured)
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