Florida Construction Contracts

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Commonly Asked Questions about Florida Construction Contracts

How much do you pay a contractor up front in Florida?

Never pay the full amount of a repair up front and hesitate before providing large deposits. Florida law requires a contractor to apply for a permit within 30 days and start work within 90 days if he collects more than 10 percent of the contract up front.

How much can a contractor ask for upfront in Florida?

Florida law requires a contractor to apply for a permit within 30 days and start work within 90 days if he collects more than 10 percent of the contract up front. Know what you will be expected to pay, how long the work is expected to take and what will happen should the costs or repair times exceed the estimates.

What is the law regarding contractors in Florida?

(3)(a) A contractor who receives money for repair, restoration, addition, improvement, or construction of residential real property in excess of the value of the work performed shall not, with intent to defraud the owner, fail or refuse to perform any work for any 90-day period. 3.

Can contractor ask for payment up front?

Contractors may ask for a portion of the total cost upfront to secure the scheduling, purchase materials, or pay subcontractors.

What are the 4 types of construction contracts?

Here are four main construction contracts to choose from, plus their pros and cons: Lump-Sum Contracts. Cost-Plus-Fee Contracts. Guaranteed Maximum Price Contracts. Unit-Price Contracts.

What is the most popular construction contract?

Lump sum contracts This is the most basic and common type of construction contract. Lump sum contracts work especially well for projects with a well-defined scope of work, which enables contractors to make an accurate estimate of the projects cost.

What is required on a commercial construction contract in Florida?

Florida statute requires the contract to have a Florida contractors license number, recovery fund disclosure, and lien notice. All of these must be visibly clear in the construction contract, if needed, before they are signed. A violation could turn into a fine.

Is it normal for a contractor to ask for $50 up front?

Common Construction Deposit Structures 50/50 Deposit: Note that this will usually only be seen on smaller projects jobs like simple repairs or paint jobs, etc. An initial deposit is made to cover materials, permits, and possibly labor, while the final payment wraps up the profits and other expenses.