New Florida Law: What Boca Raton Contractors and Subcontractors Need to Know About SB 290
Payment disputes between contractors and subcontractors are among the most common sources of construction litigation in Florida. A new state law is about to significantly change the stakes.
Effective July 1, 2026, Senate Bill 290 imposes serious new penalties on contractors who fail to pay subcontractors and suppliers on time. If you work in Florida’s construction industry, our experienced Boca Raton construction litigation lawyer explains how this law applies and ways to protect your position before it takes effect.
Key Changes Under SB 290 That Affect Contractors and Subcontractors in South Florida
Under SB 290, Florida contractors must pay subcontractors and suppliers within 45 days of receiving payment from the owner. This requirement builds on the state’s existing Prompt Payment Act, but adds enforcement options that were not previously available.
The law targets a widespread problem. According to a 2025 Businesswire report, 70 percent of general contractors reported work delays or stoppages due to late payments in 2023, and subcontractors and suppliers bear much of that financial burden. The key changes SB 290 introduces include:
- A mandatory 45-day payment window for subcontractors and suppliers after contractor payment.
- License discipline, including fines, suspension, or revocation for nonpayment.
- Criminal exposure, with nonpayment potentially resulting in misdemeanor or felony charges.
- Placement on a suspended vendor list, barring noncompliant contractors from public projects.
These consequences go well beyond civil liability and represent a significant shift in how Florida treats contractor nonpayment.
Steps Florida Contractors and Subcontractors Should Take Now
SB 290 creates both new risks and new leverage depending on which side of a payment dispute you are on. Contractors need to review their contracts, payment processes, and project cash flow structures before July 1, 2026. Subcontractors and suppliers gain stronger legal remedies than ever before. However, they still need to document their work carefully and understand their rights under both SB 290 and Florida’s existing Construction Lien Law under Chapter 713 of the Florida Statutes.
Steps both parties should take before the law takes effect include:
- Review all active and upcoming contracts to ensure compliance with payment terms.
- Document all invoices, payment requests, and communications carefully.
- Understand how the 45-day window interacts with existing lien deadlines.
- Evaluate the license or criminal consequences that current payment practices could trigger under the new law.
Don’t wait for SB 290 to go into effect. Contact an experienced Florida construction litigation attorney to assess your exposure or strengthen potential claims. Doing this now could prevent potentially costly problems later.
Contact Our Experienced Boca Raton Construction Litigation Lawyer Today
SB 290 gives subcontractors and suppliers powerful new tools, while putting contractors on notice that nonpayment carries serious consequences. Whether you need to update your contracts, enforce a payment claim, or defend against a dispute, get trusted, experienced legal help from our Boca Raton construction litigation lawyer today.
Call or contact Neuman Law, P.A. to schedule a consultation. We represent clients throughout Boca Raton, Palm Beach County, Martin County, Broward County, Miami-Dade County, Monroe County, and Hillsborough County.
Sources:
flsenate.gov/Session/Bill/2026/290
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0713/0713.html
businesswire.com/news/home/20250521182315/en/Constructions-Cash-Crunch-70-of-Contractors-Say-Payment-Delays-Threaten-Industry