Quick Answer: Florida businesses that lose public contracts or face government takings have strong but time-sensitive rights. In state agency bid protests, a bidder generally must file a notice of protest within 72 hours of the posted decision and a formal written protest within 10 days. Local governments set their own protest procedures. In eminent domain, the Florida Constitution guarantees full compensation, and qualifying businesses may recover business damages, with the condemning authority generally paying reasonable attorney’s fees. Missing a deadline can forfeit these rights.
Government touches business in South Florida every day. Counties, cities, school boards, transit agencies, seaports, airports, and state agencies spend billions of dollars each year on construction, technology, professional services, and supplies. At the same time, road widenings, transit expansions, drainage projects, and public facilities require land, and that land often belongs to businesses.
When a company loses a contract it should have won, or when government takes property a business depends on, the company’s response must be fast and precise. McArdle Franco PLLC, a Coral Gables law firm established in 2002, represents businesses in government procurement protests and eminent domain proceedings as part of its business litigation practice. As a South Florida business litigation law firm with real estate, construction, and administrative experience, the firm helps clients protect their rights when dealing with public entities. This article explains how both processes work.
Part One: Government Procurement Bid Protests
Why Protests Matter
Public contracts are awarded under competitive procurement rules designed to ensure fairness. When an agency misapplies its own solicitation, scores proposals inconsistently, accepts a nonresponsive bid, or awards to a bidder that does not meet the requirements, disappointed bidders can challenge the decision. A successful protest can result in the award being rescinded, the bids being rejected and rebid, or the award going to the protester.
State Agency Protests Under Chapter 120
Protests of state agency procurement decisions are governed by Section 120.57(3) of the Florida Statutes and the agency’s solicitation documents.
| Step | Deadline |
|---|---|
| Notice of protest | Within 72 hours after posting of decision (excluding weekends and holidays) |
| Formal written protest | Within 10 days after filing the notice |
| Protest bond | Typically required with the formal protest |
| Challenge to solicitation terms | Within 72 hours after posting of the solicitation |
Failure to file timely constitutes a waiver of the right to protest. These are among the shortest deadlines in Florida law.
Challenging the Specifications
A bidder who believes the terms or specifications of a solicitation are unfair, ambiguous, or unduly restrictive must generally protest within 72 hours of the solicitation’s posting. A bidder that waits until after the award to complain about the specifications usually loses the right to challenge them.
The Standard of Review
In a state agency bid protest, an administrative law judge conducts a hearing to determine whether the agency’s proposed action is contrary to governing statutes, rules, policies, or the solicitation specifications. The standard of proof is whether the agency’s action was clearly erroneous, contrary to competition, arbitrary, or capricious. This is a deferential standard, so protests must be built on specific, documented errors.
Local Government Protests
Counties, cities, school districts, and special districts adopt their own procurement codes and protest procedures. Miami-Dade County, Broward County, Palm Beach County, and individual municipalities each have different deadlines, filing requirements, bond amounts, and hearing processes. Many require a protest within a few business days after the recommendation of award is posted. Some include cone of silence rules restricting communications with officials during the procurement. Violating a cone of silence can result in disqualification.
Common Grounds for Protest
- The winning bid was nonresponsive to a mandatory requirement
- The agency scored proposals inconsistently with the stated criteria
- The evaluation committee considered factors not in the solicitation
- The winning bidder lacked required licenses, bonding, or experience
- Price calculation or bid tabulation errors
- Conflicts of interest among evaluators
- Improper communications during a cone of silence
Building a Strong Protest
- Monitor postings daily during the award period.
- Request public records immediately, including scoring sheets, evaluator notes, and competing proposals.
- File the notice of protest within the deadline, even while investigating.
- Identify specific errors tied to the solicitation, statutes, or rules.
- Post the required bond on time.
- Prepare evidence for an administrative hearing or local protest hearing.
A Florida contract dispute law firm familiar with public procurement can evaluate quickly whether a protest is worth pursuing, because the window to decide is extremely short.
Defending an Award
Winning bidders also need counsel. When a competitor files a protest, the awardee can intervene to defend the award. Contract execution is often stayed while the protest is pending, so an efficient defense protects the awardee’s schedule and revenue.
Disputes After the Contract Is Awarded
Winning a public contract does not end the possibility of disputes. Contractors and vendors may face disagreements over change orders, delays, payment, terminations, and liquidated damages during performance.
Florida law allows suits against state agencies and political subdivisions for breach of express written contracts. In Pan-Am Tobacco Corp. v. Department of Corrections (1984), the Florida Supreme Court held that sovereign immunity does not bar actions for breach of an express, written contract that the government entity was authorized to enter. Implied contract claims, however, generally remain barred. That makes clear written change orders and amendments especially important on public projects.
Public contracts also commonly include specific claim procedures, notice deadlines, and administrative steps that must be completed before litigation. Payment to contractors by local governments is governed by the Local Government Prompt Payment Act, Sections 218.70 through 218.80, which includes its own dispute resolution process. Contractors that ignore these procedures risk losing valid claims.
Termination for Convenience
Most public contracts allow the government to terminate for convenience. A contractor terminated for convenience is usually limited to payment for work performed and certain costs, without lost profits on unperformed work. When a government entity labels a termination as “for default,” the contractor may challenge it, and an improper default termination can often be converted into a termination for convenience with corresponding recovery.
Part Two: Eminent Domain and Business Owners
The Constitutional Guarantee
Article X, Section 6 of the Florida Constitution provides that no private property shall be taken except for a public purpose and with full compensation paid to each owner. Florida’s eminent domain protections are among the strongest in the country. After the U.S. Supreme Court’s 2005 decision in Kelo v. City of New London, Florida voters approved a 2006 constitutional amendment, and the Legislature adopted Section 73.013, generally prohibiting the transfer of property taken by eminent domain to private parties for economic development.
Who Takes Property in South Florida
The Florida Department of Transportation, counties, cities, school boards, water management districts, expressway authorities, and utilities all have condemnation powers. Common projects include road widening, interchange improvements, transit corridors, drainage and flood control, utility easements, and public buildings.
Pre-Suit Procedures
Before filing a condemnation lawsuit, the condemning authority must attempt to negotiate in good faith, provide the owner with a written offer, and, upon request, provide a copy of the appraisal on which the offer is based. Section 73.015 generally requires the written offer at least 30 days before filing suit. The authority must also notify business owners of their right to claim business damages.
Full Compensation
Full compensation generally includes:
- The value of the property taken, based on its highest and best use
- Severance damages to the remaining property when only part is taken
- Business damages for qualifying businesses in partial takings
- Attorney’s fees and costs, generally paid by the condemning authority
- Expert fees for appraisers, engineers, planners, and accountants
Business Damages
Section 73.071(3)(b) allows recovery of business damages in partial takings when the business has been operating on the property for more than four years and the taking causes damage to or destruction of the business. Business damages compensate for lost profits caused by the taking, such as loss of access, parking, visibility, or signage.
A business owner seeking business damages must submit a good faith written business damage offer, generally within 180 days after receiving notice from the condemning authority, supported by business records. The deadline and documentation requirements are strict.
Common Impacts on Businesses
| Impact | Example |
|---|---|
| Lost access | Driveway closed or relocated |
| Lost parking | Spaces taken for road widening |
| Lost visibility | Signage removed or blocked |
| Construction disruption | Prolonged work affecting customers |
| Code nonconformity | Remaining site no longer meets setbacks or parking codes |
| Relocation | Business must move entirely |
Attorney’s Fees
Under Section 73.092, attorney’s fees in eminent domain cases are generally based on the benefits achieved for the client, measured by the difference between the final judgment or settlement and the condemning authority’s first written offer. This structure means owners can often obtain experienced representation without paying fees out of their own compensation.
Tenants
Businesses that lease property may also be entitled to compensation, depending on the lease. Many commercial leases contain condemnation clauses that terminate the lease or allocate the award to the landlord. A South Fl commercial lease litigation attorney can review the lease to determine the tenant’s rights, including business damages and relocation benefits.
Quick Take Proceedings
Many condemning authorities use a “quick take” procedure under Chapter 74, which allows title to pass before the final compensation trial upon a deposit of the estimated value into the court registry. Owners can contest the necessity of the taking and the good faith estimate, and may withdraw deposited funds while continuing to litigate compensation.
Relocation Assistance
When a project receives federal funding, the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act generally requires the acquiring agency to provide relocation assistance to displaced businesses. Benefits can include moving expenses, searching expenses, and reestablishment expenses up to regulatory limits. These benefits are administered separately from the compensation claim and have their own application deadlines and documentation requirements. Florida transportation projects commonly involve federal funds, so business owners displaced by road projects should ask whether relocation benefits apply and file claims on time.
Valuation Experts
Compensation cases are decided largely by expert evidence. Owners typically need a real estate appraiser, and often an engineer, land planner, and business damages accountant. The condemning authority’s appraisal may not account for lost parking, access changes, or code nonconformities on the remaining property. Independent experts retained early can identify value the authority’s appraisal missed.
Steps for Business Owners
- Do not sign anything from the condemning authority before legal review.
- Request the appraisal and project plans.
- Identify all impacts on access, parking, signage, and operations.
- Gather financial records to support business damages.
- Calendar the business damage claim deadline.
- Retain appraisers and experts early.
- Review leases and loan documents for condemnation clauses.
Where Procurement and Condemnation Intersect
The same public projects that generate procurement opportunities often require land acquisition. A contractor may bid on a road project that requires taking a neighboring business’s frontage. A business owner may face both a taking and construction-related disruption. Understanding both sides of government projects allows McArdle Franco to advise clients comprehensively.
Related Business Disputes
Government contract and condemnation matters often lead to private disputes. Subcontractors on public projects may have payment bond claims, joint venture partners may disagree about a protest strategy, and co-owners may disagree about accepting a condemnation offer. A shareholder dispute attorney Miami can address ownership conflicts that arise, while a Miami commercial litigation attorney can handle related contract claims. Local businesses and property owners can meet with a Coral Gables business dispute lawyer at the firm’s Alhambra Circle office.
Frequently Asked Questions
How long do I have to protest a state contract award in Florida?
Generally, a notice of protest must be filed within 72 hours after the agency posts its decision, and a formal written protest within 10 days after the notice. Local governments have their own deadlines, which can be equally short.
Can I challenge a solicitation’s specifications after bids are opened?
Usually not. Challenges to the terms or specifications of a state solicitation must generally be filed within 72 hours after the solicitation is posted.
What is a cone of silence?
It is a local procurement rule restricting communications between bidders and government officials or staff during a procurement. Violations can lead to disqualification.
Am I entitled to business damages if the government takes part of my property?
You may be, if your business has operated on the property for more than four years and the partial taking damages the business. You must submit a timely written business damage offer with supporting records.
Who pays my attorney in an eminent domain case?
In most Florida eminent domain cases, the condemning authority pays reasonable attorney’s fees, generally calculated based on the benefits achieved above the authority’s first written offer.
Can the government take my property and give it to a private developer?
Florida law generally prohibits taking private property by eminent domain and transferring it to a private party for economic development purposes.
Key Takeaways
- State bid protests require a notice within 72 hours and a formal protest within 10 days.
- Local procurement rules vary widely and often include cone of silence restrictions.
- Florida guarantees full compensation for takings, including qualifying business damages.
- Business damage claims require a timely written offer with financial documentation.
- Condemning authorities generally pay owners’ reasonable attorney’s fees.
About McArdle Franco PLLC
McArdle Franco PLLC is a Coral Gables law firm established in 2002 that counsels and represents businesses throughout Florida, across the nation, and internationally in business litigation, real estate, land development and construction, business structuring, and transaction structuring. The firm’s litigators practice in state and federal court and represent clients in arbitration, mediation, and administrative proceedings. The firm was named a Tier 2 firm in Miami for Litigation – Construction in the 2026 edition of Best Law Firms® and was ranked in Chambers USA 2025 for Litigation: General Commercial in Florida.
Contact McArdle Franco PLLC
Address: 255 Alhambra Circle, Suite 925, Coral Gables, FL 33134
Phone: (305) 442-2214
Website: mcardlefranco.com
This article provides general information and is not legal advice. Consult a qualified attorney about your specific situation.
Sources and Further Reading
- Administrative Procedure Act, Section 120.57(3), Florida Statutes (Bid Protests) – Florida Legislature
- Procurement of Personal Property and Services, Chapter 287, Florida Statutes – Florida Legislature
- Florida Constitution, Article X, Section 6 (Eminent Domain) – State of Florida
- Eminent Domain, Chapter 73, Florida Statutes – Florida Legislature
- Proceedings Supplemental to Eminent Domain (Quick Take), Chapter 74, Florida Statutes – Florida Legislature
- Pan-Am Tobacco Corp. v. Department of Corrections, 471 So. 2d 4 (Fla. 1984) – Florida Supreme Court
- Attorney’s Fees in Eminent Domain, Section 73.092, Florida Statutes – Florida Legislature
- Kelo v. City of New London, 545 U.S. 469 (2005) – U.S. Supreme Court
- Uniform Relocation Assistance and Real Property Acquisition Policies Act, 42 U.S.C. § 4601 et seq. – U.S. Code
- Business Litigation Practice – McArdle Franco PLLC
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