Notice of Commencement & Notice to Owner.
If you’ve ever hired a contractor in Florida, you’ve probably heard terms like Notice of Commencement, Notice to Owner, or Chapter 713 and immediately thought:
“I have no idea what any of that means.”
You’re not alone.
Most homeowners and business owners sign construction contracts without understanding one of the most important consumer protections built into Florida law.
The good news?
It isn’t nearly as complicated as it sounds.
Think of Chapter 713 Like This…
Imagine you hire a general contractor to remodel your home.
You pay the contractor exactly as agreed.
Months later, you receive a notice that one of the subcontractors—or even the company that supplied the electrical materials—was never paid.
Now they’re placing a lien on your property, even though you already paid the contractor.
That sounds unfair.
Unfortunately, it happens every day.
Florida’s Construction Lien Law (Chapter 713) exists to protect everyone involved in a construction project—but it also requires property owners to take a few simple steps to protect themselves.
What is a Notice of Commencement?
A Notice of Commencement (NOC) is a document recorded with the county before construction begins on many projects.
It identifies:
- The property owner
- The contractor
- The property being improved
- The lender (if applicable)
- Where legal notices should be sent
More importantly…
It officially starts the legal process established under Florida’s Construction Lien Law and provides subcontractors and suppliers with the information they need to protect their rights.
What is a Notice to Owner?
This is the document that causes the most confusion.
A Notice to Owner (NTO) is NOT a lien.
It is NOT a lawsuit.
It does NOT mean someone hasn’t been paid.
Instead…
It simply means:
“We are working on your project, but we do not have a direct contract with you. If we are not paid by your contractor, Florida law gives us certain lien rights.”
That’s it.
Receiving a Notice to Owner should not cause panic.
In fact…
Receiving one is often a sign that the subcontractor or supplier is following the law correctly. Under Florida law, many subcontractors and suppliers must serve this notice within specific time limits to preserve potential lien rights.
Why Should Property Owners Care?
Here’s where many owners make a costly mistake.
They assume:
“I paid my contractor, so everyone must have been paid.”
Unfortunately…
That isn’t always true.
If your contractor fails to pay an electrical contractor…
Or the plumbing supplier…
Or the drywall company…
Or the roofing supplier…
Those companies may still have legal rights under Chapter 713.
That’s why the law encourages owners to verify that everyone furnishing labor or materials has actually been paid before making progress payments or final payment.
The Best Question You Can Ask Before Every Payment
Instead of simply writing another check, ask your contractor:
“Can you provide lien releases from everyone who has sent me a Notice to Owner?”
Professional contractors expect this question.
Honest contractors appreciate it.
Questionable contractors hope you never ask.
Florida law specifically encourages owners to obtain written releases from anyone who has served a Notice to Owner before making payments.
A Great Contractor Has Nothing to Hide
At Tenax Electrical, we frequently work as a subcontractor on commercial and residential projects.
We routinely send Notices to Owner.
Not because we expect problems…
But because it protects everyone’s legal rights and follows Florida law.
Likewise, when we contract directly with owners, we fully expect them to ask questions about lien releases and payment documentation.
Transparency protects everyone.
Warning Signs Every Owner Should Watch For
If your contractor:
- Becomes defensive when you ask about subcontractor payments
- Refuses to provide lien releases
- Rushes you to make payments
- Can’t explain who is working on your project
- Tells you that Notices to Owner “don’t matter”
You should slow down.
Professional contractors understand Chapter 713 and are happy to explain the process.
The Bottom Line
The Notice of Commencement and the Notice to Owner are not paperwork designed to make construction more complicated.
They’re there to protect you.
The biggest mistake a property owner can make is assuming that because the general contractor has been paid, everyone else has been paid too.
Ask questions.
Request lien releases.
Understand who is working on your project.
A reputable contractor won’t be offended.
They’ll appreciate that you’re protecting your investment.
At Tenax Electrical, we believe that trust is built through transparency, communication, and professionalism. We want every customer to understand not only the work we’re performing, but also the legal process that protects everyone involved.
Because an informed customer is a protected customer.
About the Author
David Yencarelli is President of Tenax Electrical Company and a Florida Licensed Electrical Contractor with more than 20 years of experience in the electrical and construction industry. He is passionate about educating homeowners, business owners, and construction professionals on safety, quality workmanship, and best practices that protect their investments.