Alternative to the construction lien transfer bond problem.
Author | Padgett, Stanley T. |
Position | Letters - Letter to the editor |
The problems with the Florida construction lien transfer bond statute are real, but the solution offered in the March article ("Practical Solutions to the Problems Resulting from the Real Life Application of Florida's Construction Lien Transfer Bond Statute") is impractical and expensive. I offer two alternative solutions for discussion. First, given the current cost of construction litigation, each lien transfer bond should include for attorneys' fees and costs, $25,000 or 25 percent of the amount claimed, whichever is larger. That would eliminate the need for expensive and ineffective bond increase proceedings, since in many cases, an increase in the bond amount that cannot be placed as a lien against the property is likely to be completely ineffective. Second, to preclude the bonding requirement, (and the attorneys' fee...
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