Building Code Administrators and Inspectors Florida Principle and Practice Licensure Practice Exam

What document must be filed when a direct contract exceeds $2,500?

1. Certificate of completion

2. Notice of Commencement

3. Final Certificate of Occupancy

4. Building permit

The correct answer is: Notice of Commencement

When a direct contract exceeds $2,500, a Notice of Commencement must be filed. This document serves as a formal notice that construction will begin on a property and is critical for establishing the timeline of a construction project. It creates a public record that can protect the rights of contractors and subcontractors by providing them with a legal claim to the property in the event of non-payment. Filing a Notice of Commencement is a necessary step that ensures compliance with Florida's construction laws. The Notice of Commencement must be filed with the appropriate local government office before the start of a construction project and should also be posted on the job site for visibility to employees and vendors. This process is essential for ensuring that all parties involved in the project are aware of its commencement and helps to mitigate the risk of liens from subcontractors and suppliers.