On June 26, 2020, Governor Ron DeSantis signed fifteen bills into law, including HB 441, a revision to the allowable maximum dollar amount for continuing contracts for construction projects. Increasing the dollar cap from $2 million to $4 million, the legislation revises the maximum dollar amount that a public entity can spend to procure certain services under a continuing contract.
In addition to increasing the cap on continuing contracts for construction projects, the bill also increases the cap for study activities associated with public construction projects, from $200,000 to $500,000.
Continuing Contracts
Under the Florida Legislature’s Consultants’ Competitive Negotiation Act (CCNA), a continuing contract is a contract for professional services (of an architect, professional engineer, landscape architect, or registered surveyor and mapper), whereby a business provides professional services to an agency for several projects. Permissible on public construction projects for professional and construction services, continuing contracts allow for public entities to group smaller contracts into one RFP/RFQ process, so long as the sum of the total value of all the contracts does not exceed the cap. By grouping smaller, but substantially similar contracts together, public entities and the companies bidding on such work save time and money in their competitive solicitations.
Since 2009, continuing contract consolidations had been limited to a cap of $2 million, failing to reflect rising industry costs, inflation and market conditions over the past decade. According to the Associated Builders and Contractors of Florida, the bill’s passage will not only provide cost savings for public entities, but will also “allow for smaller companies to gain experience on multiple and smaller projects via one project award.”
- Partner
Derrick M. Valkenburg is a partner in Shutts & Bowen LLP's Orlando office, where he is a member of the Construction Litigation Practice Group.
Derrick's practice focuses on construction, commercial and real property litigation. He ...
Search Blog
Subscribe Today
Follow Us
Recent Posts
- Pith? Perfect for Lienors, Not So Much for Landlords: Protecting Rights When Improvements Are Made to Commercial Tenancies
- Risks & Rewards of 3D Printing in the Construction Industry
- Back to (Construction) Work after COVID
- Drones in the Construction Industry
- COVID-19 Stimulus Relief and the Construction Industry
- PFAS Liability Litigation and the Construction Industry – Act Now or Pay Later
- How Evolving Technology Is Disrupting the Construction Sector
- Remaining Vigilant: Hurricane Planning in the Construction Industry
- COVID-Confusion: Force Majeure and Executive Orders
- Top Florida Legislation Affecting the Construction Industry in 2020
Popular Categories
- Construction Litigation
- Construction
- Construction
- Business of Real Estate
- Landlord-Tenant
- Liens
- Real Estate Law
- Contracting
- Business
- Contracts
- General Liability
- Compliance
- Technology
- Florida Public Contracts
- Litigation
- Venue
- Insurance
- Privacy
- Technology
- Statute of limitations
- Statute of repose
- Florida Procurement
- Florida Public Procurement
- Public procurement
- Liens
- Contracting
- Federal Government Contracting
- Florida Government Contracts
- Public Contracts
- Damages
- Regulatory Compliance
- Small Business
- Design Professionals
- Forum Selection
- Attorneys' Fees
- Offers of Judgment
- Prevailing Party
- Settlements
- Designer Liability
- Business
- Regulation
- Evidence
- Expert Science
- Unlicensed Contracting
Editors
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Of Counsel
- Partner
- Partner
- Partner
- Partner
Archives
- August 2023
- November 2022
- July 2021
- June 2021
- March 2021
- February 2021
- December 2020
- October 2020
- September 2020
- August 2020
- July 2020
- May 2020
- April 2020
- March 2020
- December 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- January 2018
- November 2017
- October 2017
- August 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016