Mike Silvers, CPRC, Owner, Silvers Systems Inc. and FRSA Technical Director
On the first of August, well before Tropical Storm Debby turned into Hurricane Debby, Governor Ron DeSantis issued Executive Order (EO) 24-156 (Emergency Management – Invest 97L). It was later amended declaring 61 of 67 Florida counties under a state of emergency.
For the first time since the passage of HB 939 during the 2024 legislative session and its implementation on July 1, a new provision in Florida Statutes was triggered. The provision allows a residential property owner to cancel a contract to replace or repair a roof
without penalty or obligation within 10 days after the execution of the contract signed during a state of emergency.
This law was passed in response to an unusually high number of complaints following Hurricane Ian and other recent storms, involving roofing contractors who obtained signed contracts and did not perform any work. In many cases, these contracts contained
cancellation penalties of 15 to 25 percent. It was clear that some unscrupulous contractors were entering into this type of contract never intending to do any work but instead just collecting cancellation fees from frustrated homeowners.
Other homeowners had materials placed on their roofs, after which they paid a sizable deposit to the contractor but work was never started. To add insult to injury, they received an intent to lien from the material supplier who was trying to get paid. This potentially left the homeowner paying for the material twice. Depending on how hastily it was loaded and how long it was exposed, it may have become unusable. Others wound up with adjusters and attorneys that they didn’t hire taking over their claims. Homeowners were upset; I know from the number of calls that I’ve received from people trying to find a solution. Many called their legislators and complained, causing legislators to insist that something be done. Legislators proposed a bill that would allow a 10-day (originally 30-day) cancellation with very few exceptions. FRSA explained that this approach would just put a hold on anything being done by a contractor until the 10-day cancellation period lapsed. If the contractor proceeded with the work before then, there would be the possibility of a cancellation after work was in progress or completed. It would also do little to stop those (as my mother used to say) “with larceny in their hearts.” But despite our desire to kill the bill, it was clear that something was going to be passed.
There is an old saying in politics – and negotiations in general – that if you’re not at the table, you may be on the menu. So, FRSA and others who were concerned came to the table in order to improve this legislation and address the following concerns.
■ How can we meet the contract language requirement in the bill without giving the possible misimpression that this is a blanket 10-day cancellation clause that applies to all contracts?
■ How can we stop this from applying to every roofing contract entered into during a state of emergency?
■ How can we eliminate the potential 10-day delay period but still protect a contractor who wants to help the homeowner by doing something sooner to minimize further damage?
The bill eventually passed with language that we feel helped address these three concerns. It was signed by the Governor and took effect on July 1, 2024. It is shown below.
489.147 Prohibited property insurance practices; contract requirements.
(6)(a) A residential property owner may cancel a contract to replace or repair a roof without penalty or obligation within 10 days after the execution of the contract or by the official start date, whichever comes first, if the contract was entered into based on events that are subject of a declaration of a state of emergency by the Governor. For the purposes of this subsection, the official start
date is the date on which work that includes the installation of materials that will be included in the final work on the roof commences, a final permit has been issued, or a temporary repair to the roof covering or roof has been made in compliance with the Florida Building Code.
(b) A contractor executing a contract during a declaration of a state of emergency to replace or repair a roof of a residential property must include or add as an attachment to the contract the following language, in bold type of not less than 18 points, immediately before the space reserved for the signature of the residential property owner: "You, the residential property owner, may cancel this contract without penalty or obligation within 10 days after the execution of the contract or by the official start date, whichever comes first, because this contract was entered into during a state of emergency by the Governor. The official start date is the date on which work that includes the installation of materials that will be included in the final work on the roof commences, a final permit has
been issued, or a temporary repair to the roof covering or roof system has been made in compliance with the Florida Building Code."
(c) The residential property owner must send the notice of cancellation by certified mail, return receipt requested, or other form of mailing that provides proof thereof, at the address specified in the contract.
First, let’s look at the contract language requirements. FRSA’s Legal Counsel, Trent Cotney, covered these requirements in his column in the August issue of Florida Roofing magazine titled: Florida Legislation Requires New Language in Roofing Contracts. One of the items that FRSA pushed for was the “or add as an attachment to the contract” language. This language will allow a contractor to add this notice as a separate attachment only when the state of emergency is in force for work in the designated counties. These declarations generally expire after 60 days unless renewed by the Governor. Those addressing hurricanes usually are extended. It does require placement immediately before the space reserved for the signature of the residential property owner, so be sure there is a place for the owner’s signature after the notice.
The bill further reduces the number of contracts that must contain the notice and the language only requires the notice to be provided to a residential property owner. Unfortunately, it does not make clear what type of construction constitutes residential property. In other sections of Florida Statutes, it is generally described as real property zoned as residential or multifamily residential structures with four or fewer residential dwelling units. In the building code it states:
The Provisions of the Florida Building Code, Residential shall apply to the construction, alteration, movement, enlargement, replacement, repair, equipment, use and occupancy, location, removal and demolition of detached one- and two-family dwellings and townhouses not more than three stories above grade plane in height with a separate means of egress.
So, owners of buildings that don’t meet these descriptions should not need to receive the notice. That being said, it may be simpler to add the language to your standard contract and explain to owners who ask who it applies to or refers to, if someone actually attempts to improperly cancel.
To eliminate the situation where a contract might be cancelled during the 10-day cancellation period but after work had started, a definition of a start date was added. Once any of three things have been performed by the contractor, the cancellation provision is no longer applicable.
■ The installation of materials that will be included in the final work on the roof commences. For instance, a portion of a damaged roof covering is removed and proper underlayment is installed until the roof replacement can be completed or that replacement has begun.
■ A temporary repair to the roof covering or roof has been made in compliance with the Florida Building Code. This will allow a contractor to get his customer dried in (not tarped) while they wait for a permanent repair or replacement.
■ A final permit has been issued. The inclusion of the words “final permit” could be misleading. Typically, there is only one permit that is issued, not a final permit as referred to in the language. There is a final inspection, which isn’t what is referred to here. This provision should eliminate the contract being cancelled after permitting.
These provisions do not recognize loading of materials or tarping as a start date that would eliminate the possibility of cancellation. As stated earlier, these methods have been used by some unscrupulous contractors and legislators felt that these issues needed to be addressed.
Since this language was added to the Florida Statutes under Regulation of Professions and Occupancies, Chapter 489 Contracting, it carries the same type of penalties as other violations and can include the following:
489.147 Prohibited property insurance practices; contract requirements.
(3) A contractor who violates this section is subject to disciplinary proceedings as set forth in s. 489.129. A contractor may receive up to a $10,000 fine for each violation of this section.
I hope this information was helpful and that it will help you decide how you should implement these new contract cancellation requirements into your company’s policies.
The following counties are currently under a state of emergency until September 30, 2024: Alachua, Baker, Bay, Bradford, Brevard, Calhoun, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Escambia, Flagler, Franklin, Gadsden, Gilchrist, Glades, Gulf, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Holmes, Jackson, Jefferson, Lafayette, Lake, Lee, Leon, Levy, Liberty, Madison, Manatee, Marion, Monroe, Nassau, Okaloosa, Okeechobee, Orange, Osceola, Pasco, Pinellas, Polk, Putnam, Santa Rosa, Sarasota, Seminole, St. Johns, Sumter, Suwannee, Taylor, Union, Volusia, Wakulla, Walton and Washington.
Mike Silvers, CPRC is owner of Silvers Systems Inc. and is consulting with FRSA as Director of Technical Services. Mike is an FRSA Past President, Life Member and Campanella Award recipient and brings over 50 years of industry knowledge and experience to FRSA's team.
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