Florida remodel or addition contract: what to put in writing
The contract terms, notice of commencement, down-payment rule and lien protections that shape a Florida home renovation.
A renovation contract has to answer a few questions in advance: what will be built, for how much, by when, and what happens if something goes wrong. Florida law adds several rules for homeowners. This guide walks through the ones that matter most.
What the contract should say
- The contractor's legal name and Florida licence number (which the law requires to appear in contracts and bids).
- A detailed scope: rooms, dimensions, materials, brands and allowances for items you will choose later, such as tile or fixtures.
- The total price and a payment schedule linked to milestones, not to dates.
- Start and substantial completion dates, and what happens if weather or permits delay them.
- Who pulls permits and who pays for them.
- How change orders are priced and approved, in writing, before work.
- Warranty terms and who services them.
The 10 percent rule
Under section 489.126, if a residential contractor collects more than 10 percent of the contract price, the contractor must apply for the necessary permits within 30 days of payment and start work within 90 days after the permits are issued, unless there is just cause. If the contractor does neither, you can send a written demand by certified mail, and a contractor who does not respond within 30 days cannot claim just cause. The statute sets criminal penalties for taking money and not performing that scale with the amount involved. Make payments in a traceable way and keep records.
Recovery Fund notice
For contracts above $2,500 in labour and materials, the contract must include a notice that payment, up to a limited amount, may be available from the Florida Homeowners' Construction Recovery Fund if you lose money on a project, where the loss results from specified violations of Florida law by a licensed contractor (section 489.1425). Read about eligibility on the DBPR Recovery Fund page: it is a last resort and requires a final judgment or arbitration award, among other conditions.
Notice of commencement
For most improvements to real property, Florida law requires a notice of commencement to be recorded in the county clerk's office before work starts, with limited exemptions listed in section 713.02(5). The notice stays effective for one year unless the contract allows a longer period, and work must start within 90 days of recording or the notice becomes void (section 713.13). The statute warns that payments made after the notice expires can be treated as improper payments, which can result in an owner paying twice. Ask your contractor, or a construction lawyer, how the notice applies to your job.
Liens and final payment
Suppliers and subcontractors who are not paid can claim a lien against the property. Under section 713.06, a lienor generally must serve a notice to owner before starting work or no later than 45 days after starting, and the owner should hold back the final payment until the contractor delivers an affidavit listing everyone paid and anyone still owed. Do not release the last payment without that affidavit, and ask for lien releases as you pay.
Permits and inspections
A structural addition, a new bathroom or kitchen with moved plumbing, new electrical circuits and similar work require building permits and inspections in Florida. The permit should be in the contractor's name. Keep the permit and the final inspection or certificate record: you will need them when you sell and when you file an insurance claim.
Keep a paper trail
Take dated photos at each stage, save all change orders and receipts, and keep messages in writing. If you later need to pursue a claim, those records are the evidence.
When there is a defect
Florida has a pre-suit process for construction defects in Chapter 558: a claimant generally must serve written notice of claim at least 60 days before filing an action, and the contractor has time to inspect and respond (section 558.004). This guide is general information, not legal advice; talk to a lawyer about a serious dispute.
General information only, current as of the date above. The information on Florida Building & Residential Contractor Check is not a recommendation or a guarantee of anyone's work. A license record shows registration status on the date shown, not workmanship, insurance coverage at the time of your job, or suitability for your project. Confirm license, insurance and permits directly before you hire. Rules and programs change; check the official sources linked in this guide.