How to Review a Florida Contractor Contract Before Signing

Mandatory Contract Notice for Residential Projects

Florida law requires specific language in many direct contracts between homeowners and contractors. For contracts greater than 2500 involving single or multiple family dwellings up to and including four units, the contract must contain the following notice provision printed in no less than 12 point, capitalized, boldfaced type on the front page of the contract or on a separate page signed by the owner and dated. s. 713.015, F.S.

This notice warns that unpaid subcontractors or suppliers may place a lien on your property even if you paid the contractor in full. It recommends stipulating in the contract that the contractor provide written releases of lien before any payment.

The statute specifies the exact form of the notice that must appear on the front page of the contract or on a separate page signed by the owner. Homeowners should read this notice carefully and confirm it matches the statutory language before signing. The notice must advise owners to obtain releases before any payment is made to avoid paying twice.

Payment Schedule and Progress Payments

Review the payment schedule carefully. Contracts should tie payments to completed work milestones rather than large upfront sums. Florida prompt payment requirements under s. 715.12, F.S. govern timing and conditions for payments on qualifying projects. s. 715.12, F.S.

This law applies to written contracts to improve real property that authorize construction liens under part I of chapter 713. An owner must pay when the contractor is entitled under the contract terms, has submitted a written request, and has provided required affidavits or waivers under s. 713.06, F.S. Payments generally become due according to contract terms once these conditions are met. The law allows owners and contractors to agree on retainage provisions that withhold a portion of progress payments until substantial completion.

1. Confirm the schedule specifies amounts due only after defined stages of work.
2. Note any retainage provisions allowing the owner to withhold a portion until substantial completion.
3. Ensure the contract requires the contractor to provide lien releases or affidavits with each payment request.

Owners should avoid paying more than the value of work performed. For residential repairs or improvements, contractors face restrictions on a payment exceeding 10 percent of the contract price for repair restoration improvement or construction to residential real property the contractor must apply for any required permits within 30 days after the date payment is made. The contractor must also begin the work within 90 days after all necessary permits are issued unless the contractor has just cause or the parties agree in writing to longer periods. The law also addresses situations where payments received exceed the value of work performed.

Checklist for Reviewing Payment Terms

1. List each payment amount and the exact milestone or deliverable that triggers it.
2. Verify no payment exceeds 10 percent initially unless the contractor meets the permit and start timelines in writing.
3. Confirm retainage percentage, if any, and the conditions for its release (typically after final inspection and lien waivers).
4. Require the contractor to submit a written request for payment with supporting documentation such as invoices and inspection reports.
5. Note any provisions for interest on late payments or remedies for nonperformance.
6. Check that the schedule references the prompt payment requirements under s. 715.12, F.S., including timelines for owner review of payment requests.

Lien Protections and Releases

Construction liens under Chapter 713 allow certain parties to claim against your property for unpaid labor or materials. Review clauses addressing notices to owner, claims of lien, and waiver or release forms. Chapter 713, F.S.

Before signing, add or confirm language requiring the contractor to furnish partial lien releases with progress payments and a final payment affidavit plus full releases before the final payment. s. 713.06, F.S. and s. 713.20, F.S.

The notice to owner requirement in s. 713.06 helps protect homeowners by requiring lienors not in direct contract with the owner to notify the owner of their involvement within set timeframes. Lienors must serve the notice within the timeframes specified in s. 713.06, F.S. Partial releases should reference the specific payment received and waive lien rights for that portion of the work. The final payment affidavit required by statute lists all subcontractors and suppliers and confirms they have been paid or will be paid from the final disbursement.

Claims of lien must be recorded within 90 days after the final furnishing of labor services or materials. Homeowners can request copies of any notices to owner served on the project to track potential claimants.

What to Look for in Lien Release Forms

1. Clear identification of the project address and contract date.
2. Statement that the release covers all labor, services, and materials supplied through a specific date or payment number.
3. Signature of an authorized representative of the contractor or supplier.
4. Notary acknowledgment where required by the contract or local practice.
5. Language that the release is conditional only upon actual receipt of the payment check clearing the bank.
6. Reference to the specific payment amount and confirmation that it waives rights only for the described work and materials.

Other Key Clauses to Examine

Scope of work and changes: Ensure detailed descriptions and a process for written change orders. A good scope lists materials by brand or specification, dimensions, and quality standards. Change order clauses should require written approval and pricing before extra work begins. Look for language that any oral changes are invalid unless confirmed in writing and signed by both parties. Start and completion dates: Include provisions for delays and remedies. Look for a definite start date, estimated completion, and remedies such as daily liquidated damages or owner termination rights after a cure period for delays not caused by the owner. Examine clauses addressing weather, material shortages, or owner caused delays to ensure they are balanced. Permits and insurance: Require the contractor to obtain all permits and maintain required coverage. The contract should name the homeowner as an additional insured on liability policies and provide certificates of insurance before work starts. Workers compensation coverage or exemptions should also be confirmed. Request proof that the contractor maintains coverage meeting or exceeding statutory minimums for the project duration. Dispute resolution: Check for mediation, arbitration, or venue details. Many contracts specify binding arbitration through a named organization or mediation as a first step before litigation in a specific county court. Verify that any arbitration clause allows for judicial review or enforcement under Florida law and does not unduly limit homeowner remedies.

Expanded Review Checklist

1. Verify the mandatory lien notice appears in the required format and typeface.
2. Confirm payment ties to work completed with specific milestones and documentation requirements.
3. Require lien releases at each stage and a final affidavit before final payment.
4. Note any prompt payment terms, retainage rules, and interest provisions.
5. Examine the scope for completeness and the change order process for clarity.
6. Review start and completion dates along with delay and termination clauses.
7. Confirm permit responsibility and insurance requirements with proof obligations.
8. Check dispute resolution and governing law sections for fairness and convenience.
9. Ensure the contract references the contractors obligation to provide copies of all notices to owner received from subcontractors or suppliers.
10. Verify that the contract requires the contractor to maintain a project file accessible to the owner upon request.

Steps Before Signing

1. Read the entire document and all attachments.
2. Confirm the contractors license status through official state records.
3. Have any unclear terms explained in writing.
4. Consider consulting an attorney familiar with Florida construction law.
5. Keep copies of the signed contract and all related documents.

When verifying a contractors license, use the official DBPR license search tool available on the state website and cross check any business registration through Sunbiz records. Request copies of the contractors insurance certificates directly from the insurer if possible. For any term that seems ambiguous, ask the contractor to provide a written clarification or addendum that both parties initial.

Homeowners may also benefit from obtaining multiple written estimates that detail the same scope of work for comparison. Each estimate should include a breakdown of labor, materials, and any allowances for owner selected items. Compare not only price but also proposed timelines, payment structures, and warranty language.

After signing, maintain a project file with the contract, all change orders, payment receipts, lien releases, inspection reports, and correspondence. Photograph or video the work at each milestone stage to document progress and condition of the property. Request and retain copies of the notice of commencement if recorded for the project, as it affects lien priority under chapter 713.

This is general information only. Confirm details with official sources or a qualified professional.