Florida Statute 218.755 became law effective July 1, 2025. This should be an important game changer for any contractor working with a Florida local government entity. It dramatically improves the processing time a government can take to process change orders.
“218.755 Prompt processing of change orders. Beginning on or after July 1, 2025, if a local governmental entity receives from its contractor a price quote for a change order issued by the local governmental entity, and the price quote conforms to all statutory requirements and contractual requirements for the project, the local governmental entity must approve or deny the price quote and send written notice of that decision to the contractor within 30 days after receipt of such quote. Any denial notice must specify the alleged deficiencies in the price quote and the actions necessary to remedy those deficiencies. If the local governmental entity fails to provide such information on a denial notice, it is liable to the contractor for all additional labor, staffing, materials, supplies, equipment, and overhead associated with the change order. A contract between a local governmental entity and a contractor may not alter the local governmental entity’s duties under this section.”
It is integrated with the Prompt Payment Act meaning that approved change orders are subject to the same payment deadlines as other invoices. Be sure to review with your attorney so you can take advantage of any benefits of this law for your firm. We hope this new law will be helpful in improving your cash flow.
Sources:
Chapter 2025-140, Laws of Florida (HB 683)
New Fla. Stat. §218.755 – Prompt Processing of Change Orders