Business and Legal Insights

Effective July 1, 2025, Florida’s construction industry is now operating under a new legal requirement that directly affects how change orders are processed on public projects.

The new “Prompt Processing” provision (Section 218.755 of the Florida Statutes) adds strict deadlines and consequences for how local government entities must respond to contractor-submitted change order price quotes. A key distinction from the previous Prompt Payment Act is that the previous law never addressed how quickly a government entity must act on a change order price quote, a critical omission that Section 218.755 now remedies.

Key Takeaways

1. 35-Day Deadline for Government Response
   When a contractor submits a local government requested change order price quote that meets all applicable contractual and statutory requirements, the local government must approve or deny the quote in writing within 35 days.
2. Detailed Denial Required
   If the quote is denied, the notice must clearly explain the specific deficiencies and what actions the contractor must take to remedy them.
3. Government Pays if They Miss the Deadline
   If the government fails to issue a timely and detailed response, it becomes liable for all additional costs related to the local government requested change order, including labor, staffing, materials, equipment, and overhead.
4. No Contractual Workarounds
   Local governments cannot contract around or waive the duties imposed by this statute. Any agreement attempting to do so is unenforceable.

What This Means for Local Governments

Local government entities need to closely review their internal processes and procurement procedures for managing local government requested change orders. The law creates new compliance obligations and financial risks, including:

1. Strict timing: A 35-day deadline to approve or deny conforming change order requests.
2. Detailed communication: Denials must include clear, actionable feedback.
3. No waiver clauses: Contracts or procurement rules cannot directly override the obligations in the statute.

Failure to follow these steps can expose an agency to significant unbudgeted costs.  The key is to simply address this up front and align procurement processes for creating owner directed change orders in a manner that complies with the process of the local government entities.

What Contractors Need to Know

1. Quote Must Be Solid: Only quotes requested by the local government entities that fully comply with contract terms and applicable laws trigger the 35-day rule.
2. Expect Stricter Submittal Rules: Agencies (especially airports and large local governments) may tighten up how they define a “received” or “complete” submittal.
3. Faster Processing = Fewer Delays: If used properly, this law can help reduce change order backlogs and cost disputes.

Florida contractors working on public jobs need to tighten up their change order submittals and track response timelines closely. Incomplete or defective submittals can still be denied, and may not trigger the protections offered by the statute. Section 218.755 puts pressure on government entities to act fast, but only if contractor paperwork is in order.

Whether you’re a contractor submitting change orders or a local government official reviewing them, now is the time to revisit your internal processes, approval thresholds, and documentation standards.