HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/CS/HB 583 Construction Defect Claims
SPONSOR(S): Judiciary Committee, Regulatory Reform Subcommittee and Civil Justice & Property Rights
Subcommittee, Yarborough
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Civil Justice & Property Rights Subcommittee 16 Y, 0 N, As CS Mawn Jones
2) Regulatory Reform Subcommittee 11 Y, 5 N, As CS Brackett Anstead
3) Judiciary Committee 17 Y, 2 N, As CS Mawn Kramer
SUMMARY ANALYSIS
A “construction defect” is a deficiency in, or arising out of, the design, specifications, surveying, planning,
supervision, or observation of construction, or the construction, repair, alteration, or remodeling of real
property, and includes a Florida Building Code violation. Chapter 558, F.S., creates an alternative dispute
resolution mechanism for construction defect claims to reduce the need for litigation and protect property
owner rights. Ch. 558 also limits the liability of an architect, landscape architect, engineer, surveyor, geologist,
or interior designer (“design professional”) employed by a business entity for damages resulting from
negligence occurring with the course and scope of a professional services contract in certain circumstances.
Section 95.11(3)(c), F.S., establishes time periods within which construction defect claims must be filed.
Specifically, a construction defect claim generally must be filed within four years from the date of the later of:
 Actual possession by the owner;
 Issuance of a certificate of occupancy;
 Abandonment of construction if not completed; or
 Completion or termination of the contract between the engineer, architect, or contractor and his or her
employer.
However, if the defect is latent (that is, not easily discoverable), the four-year statute of limitations begins to run
on the date the defect was discovered or should have reasonably been discovered with due diligence, and in
no case may a construction defect claim be filed later than ten years after the later of any of the above events.
CS/CS/CS/HB 583:
 Repeals ch. 558, F.S.
 Preserves the ch. 558 design professional liability limitation by moving it to s. 768.401, F.S.
 Modifies the time periods within which a construction defect claim may be filed by:
o Making the four-year statute of limitations for a:
 Patent (that is, obvious or known) defect run from the later of the date of the owner’s
actual possession or the completion or termination of the contract between the engineer,
architect, or contractor and his or her employer.
 Latent defect run from the time the defect is discovered or should have been discovered.
o Decreasing the statute of repose for a latent defect from ten years to seven years.
o Creating exceptions for latent defects: shown to have been fraudulently concealed; found in a
condominium or homeowners’ association’s common areas; or arising from a material Florida
Building Code violation.
The bill may have an indeterminate fiscal impact on state government but does not appear to have a fiscal
impact on local government. The bill provides an effective date of July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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DATE: 2/24/2022
 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Florida Building Code
The Florida Building Codes Act (“Building Code”), set out in part IV of ch. 553, F.S., provides a
mechanism for the uniform adoption, updating, interpretation, and enforcement of a single state building
code that must be applied, administered, and enforced uniformly and consistently from jurisdiction to
jurisdiction.1 The Building Code is adopted and interpreted by the Florida Building Commission, housed
within the Department of Business and Professional Regulation (“DBPR”), and enforced by local
governments.2
The Building Code’s primary purpose is the regulation of new construction or proposed modifications to
existing structures to achieve the highest level of safety and the fewest number of defects.3 To
accomplish this purpose, the Building Code sets minimum standards for the design, construction,
erection, alteration, modification, repair, and demolition of structures in the state.
Plan Review and Building Permits
Each local government must issue building permits for construction projects within its jurisdiction.4
However, the building official may not issue a building permit before first reviewing the plans and
specifications and finding that such plans and specifications comply with the Building Code.5 No
person, firm, or corporation may construct, erect, alter, repair, secure, or demolish any structure without
first obtaining a building permit, if required, from the building official.6
Inspections and Violations
For any construction that requires a building permit, the building official must inspect the work to ensure
that it complies with the Building Code.7 Where a local government determines that an engineer,
architect, or contractor has committed a material violation of the Building Code and failed to correct the
violation within a reasonable time, the local government must impose a fine on such licensee of no less
than $500 and no more than $5,000 per material violation.8 A “material violation” is a violation that
exists within a completed building, structure, or facility which may result, or has resulted, in physical
harm to a person or significant damage to the performance of a building or its systems. 9
1 S. 553.72(1), F.S.
2 Ss. 125.56, 553.72, 553.73, and 553.74, F.S.
3 Fla. Bldg. Comm., Advanced Florida Building Code Principals, http://www.floridabuilding.org/Upload/Courses_trp/421-2-MATERIAL-
Adv%20FL%20Bldg%20Code%20-%20Course%20PDF%20version%207.0.pdf (last visited Feb. 23, 2022).
4 A building permit is an official document or certificate issued by the local building official that authorizes performance of a specific
activity. Ss. 125.01(1)(bb), 125.56(1), 468.603(2), and 553.80(1), F.S.
5 Ss 125.56 and 553.79, F.S.
6 Building permits are generally not required for cosmetic improvements, such as painting or flooring replacement. S. 553.79, F .S.
7 A building official is a local government employee or a person contracted by a government entity who supervises building code
activities. Id.
8 S. 553.781, F.S.
9 Id.
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 Certificates of Completion or Occupancy
Where construction work for which a permit has been issued passes the required inspections and
satisfies all permit requirements, the building official will either issue a certificate of completion or the
permit will be considered closed where no certificate of completion is required.10 Further, where a new
structure to be occupied11 passes the required inspections and satisfies all permit requirements, the
building official will issue a certificate of occupancy.12 A building or structure requiring a certificate of
occupancy may not be used or occupied until the certificate of occupancy is issued for the structure.13
A building official may also suspend or revoke a certificate of occupancy or completion if the certificate
was issued in error or on the basis of incorrect information supplied or where it is determined that the
building or structure is in violation of any ordinance, regulation, or Building Code provision. 14
Statutes of Limitations and Repose
A statute of limitations bars the filing of a lawsuit after a certain period of time passes following an
injury.15 A statute of limitations typically begins to run when a cause of action accrues (that is, on the
date of the injury) but may also begin to run on the date the injury is discovered or on which it would
have been discovered with reasonable efforts.16 In other words, a statute of limitations bars the
available civil remedy if a lawsuit is not timely filed after an injury.
A statute of repose bars the filing of a lawsuit after a fixed period of time passes following a specific act,
which act is unrelated to the cause of action’s accrual or the discovery of the injury, even if this period
ends before the plaintiff is injured.17 Further, a statute of repose eliminates the underlying substantive
right of action, not just the available civil remedy, upon expiration of the statutorily-specified filing
period.18 Courts construe a cause of action rescinded by a statute of repose as if the right to sue never
existed, which encourages diligence in the prosecution of claims, eliminates the potential for abuse
resulting from a stale claim, and fosters finality in liability.19
Construction Defect Claims
A “construction defect” is a deficiency in, or arising out of, the design, specifications, surveying,
planning, supervision, or observation of construction, or the construction, repair, alteration, or
remodeling of real property20 resulting from:
 Defective material, products, or components used in the construction or remodeling;
 A Florida Building Code violation;
 A failure of real property’s design to meet the applicable professional standards of care at the
time of governmental approval; or
 A failure to construct or remodel real property in accordance with accepted trade standards for
good and workmanlike construction at the time of construction.21
Chapter 558, Florida Statutes, creates an alternative dispute resolution mechanism for construction
defect claims to reduce the need for litigation and protect property owner rights. 22 Under this chapter, a
10 A certificate of completion is issued for remodels, renovations, shell buildings, and structures that will not be occupied (e .g, for pools).
S. 553.79(17)(a), F.S.; S. 110, Fla. Bldg. Code, 7th Ed.
11 This includes an existing building or structure that is changing its occupancy classification.
12 S. 110, Fla. Bldg. Code, 7th Ed.
13
Id.
14 Id.
15 Legal Information Institute, Statute of Limitations, https://www.law.cornell.edu/wex/statute_of_limitations (last visited Feb. 23, 2022).
16 Id.
17 Legal Information Institute, Statute of Repose, https://www.law.cornell.edu/wex/statute_of_repose (last visited Feb. 23, 2022); Kush
v. Lloyd, 616 So.2d 415 (Fla. 1992).
18 Beach v. Great Western Bank , 692 So.2d 146 (Fla. 1997).
19 Lamb By and Through Donaldson v. Volkswagenwerk Aktiengesellschaft, 631 F. Supp. 1144, 1148 (S.D. Fla. 1986), judgment aff'd,
835 F.2d 1369 (11th Cir. 1988).
20 “Real property” means land that is improved and the improvements thereon, including fixtures, manufactured housing, or mobile
homes. S. 558.002(8), F.S.
21 S. 558.002(5), F.S.
22 S. 558.001, F.S.
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 property owner, including a subsequent purchaser or a community association 23 (“claimant”), may only
bring a civil action alleging a construction defect claim against the contractor, subcontractor, supplier, or
design professional24 responsible for the defect (“respondent”) after satisfying the statutory pre-suit
requirements, unless the claimant and the respondent have opted out of ch. 558 in writing.25 However,
ch. 558 does not create any new rights, causes of action, or theories on which liability may be based.26
Notice of Claim
Chapter 558 requires a claimant to serve a written notice of claim on the respondent at least 60 days
before bringing a construction defect claim in court, or at least 120 days before doing so if the claim
involves an association representing more than 20 parcels.27 The notice of claim must describe in
reasonable detail the alleged defect’s nature and, if known, the damage or loss caused by the defect. 28
The notice of claim must also identify the alleged defect’s location with enough detail to allow the
respondent to easily locate the defect.29
Within 10 days after service of the notice of claim, or within 30 days after service if the claim involves
an association representing more than 20 parcels, the respondent may serve a copy of the notice of
claim (“notice copy”) to each contractor, subcontractor, supplier, or design professional the respondent
reasonably believes is responsible for each defect specified in the notice (“secondary respondent”) and
must note therein the specific defect for which he or she believes each secondary respondent is
responsible.30
Inspection and Testing
Within 30 days after service of the notice of claim, or within 50 days after service if the claim involves
an association representing more than 20 parcels, the respondent has a right to perform a reasonable
inspection of the property to assess each alleged defect and the extent of any necessary repairs.31 The
claimant must give the respondent reasonable access to the property during normal working hours, and
the respondent must reasonably coordinate the timing and manner of the inspections to minimize the
number of inspections.32 Each secondary respondent is also entitled to inspect the property.33
If the respondent determines that destructive testing is necessary to reveal the alleged defect’s nature
and cause, the respondent must give the claimant written notice describing the destructive testing to be
performed, the person chosen to do the testing, the estimated amount of time needed for testing and
repairs, and the money offered for repair costs.34 If the claimant objects to the person chosen to
perform the testing, the respondent must provide the claimant with a list of three qualified persons from
which the claimant may choose one person to perform the testing. 35 Any destructive testing must be
done at a mutually agreeable time, must not make the property uninhabitable, and does not give the
party performing the destructive testing or associated repairs construction lien 36 rights unless the
23 “Community associations” are condominium, cooperative, homeowners’, and mobile home park homeowners’ associations. S.
558.002(2), F.S.
24 A design professional, such as an architect, landscape architect, engineer, surveyor, or geologist, employed by a business entity or
an agent thereof is not individually liable for damages resulting from negligence occurring within the course and scope of a professional
services contract under certain conditions. Ss. 558.002(7) and 558.0035, F.S.
25 Parties who opt out of chapter 558 may negotiate as part of any construction contract a mandatory alternative dispute resolut ion
process. Ss. 558.003, 558.004, and 558.005(1), F.S.
26 S. 558.004(12)(c), F.S.
27
Service of the notice of claim tolls the applicable statute of limitations relating to any person covered under chapter 558 a nd any bond
surety for a specified time period. Ss. 558.004(1)(a) and (10), F.S.
28 S. 558.004(1)(b), F.S.
29 Id.
30 S. 558.004(3), F.S.
31 S. 558.004(2), F.S.
32 Id.
33 S. 558.004(3), F.S.
34 S. 558.004(2)(a) and (b), F.S.
35 S. 558.004(2)
36 Under Part I of chapter 713, F.S., a contractor, subcontractor, material supplier, laborer, or professional (such as an architect or
landscape artist) may claim a lien on a property on or for which such person performed work or provided materials but was not paid,
even where such person does not have a direct contract with the property owner.
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 claimant personally contracts with such party.37 Additionally, the claimant has a right to observe the
destructive testing.38 However, if the claimant refuses to allow reasonable destructive testing, the
claimant loses the right to claim damages which could have been avoided or mitigated by the
destructive testing.39
Disclosures
A claimant and a respondent must exchange, within 30 days after service of a written request, any
design plans; specifications; photographs and videos of the alleged defect; expert reports describing
the alleged defect; subcontracts; purchase orders for the allegedly-defective work or materials; and
maintenance records and other documents related to the alleged defect’s discovery, investigation,
causation, and extent.40 A party may assert any claim of privilege41 recognized in state law with respect
to a requested disclosure.42
Settlement Offers
Within 15 days after service of a notice copy, or within 30 days of service if the claim involves an
association with more than 20 parcels, the secondary respondent must give the respondent a written
reply.43 Such reply must include a report, if any, of the scope of any property inspections conducted by
the secondary respondent and the findings and results of such insp