Hiring a contractor in Florida: 7 red flags and 5 questions to ask

7 red flags

1. Cash only, and no paperwork. Without a receipt you have no proof if something goes wrong. Pay by check or card, and get a written receipt.
2. They knocked on your door after a storm. Storm chasers show up fast, take a deposit and disappear. Choose a local pro yourself and look them up.
3. No license number in the ad. Florida requires contractors to put it on their ads, bids and contracts. No number? Ask for it and look it up.
4. A big deposit up front. In Florida, a contractor who takes more than 10% of the price up front must apply for the permits within 30 days and start the work within 90 days after the permits are issued.
5. “We don’t need a permit.” Electrical, plumbing, roofing and AC jobs usually need one. Work done without a permit can cause trouble with your insurance and when you sell the house.
6. Pressure to decide today. “This price is only good today” is a sales trick, not a deal. Get two or three written quotes and take your time.
7. No written contract. A handshake won’t help you in a dispute.

5 questions to ask before you sign

1. “What’s your license number?” Then check it on myfloridalicense.com. It takes two minutes.
2. “Can I see your proof of insurance?” If someone gets hurt or something breaks, insurance protects you. The Federal Trade Commission’s advice is simple: consider only contractors who are licensed and insured.
3. “Who pulls the permit?” It should be the contractor. If you pull it yourself as an owner-builder, Florida law makes you the person legally and financially responsible for the work, you must supervise it on site, and you can be held liable if an unlicensed worker gets hurt on your property.
4. “How much do you need up front, and when do I pay the rest?” Pay in stages, as the work gets done, and never the full amount before the job starts.
5. “Can I get that in writing?” The contract should list the work, the materials, the price, the start and end dates and the warranty, plus the contractor’s name, address, phone and license number. In Florida, a home contract over $2,500 must also include a notice about the Homeowners’ Construction Recovery Fund.

Don’t pay twice: liens and the last payment

Florida’s construction lien law lets subcontractors and suppliers who weren’t paid put a lien on your home, even if you paid your contractor in full. Three habits keep you safe:

• Keep every “Notice to Owner”. Suppliers and subcontractors send it to let you know they’re working on your job. Make sure they get paid.
• On bigger jobs, a Notice of Commencement has to be recorded with the county before the first inspection: in most cases when the job is over $5,000, and for AC repair or replacement from $15,000. Florida law puts it bluntly: not recording it may result in your paying twice.
• Before the last payment, ask for the contractor’s final payment affidavit, which says whether everyone who worked on the job was paid, and for written lien releases from anyone who sent you a Notice to Owner.

Sources

1. Federal Trade Commission: how to avoid a home improvement scam
2. Florida Statutes §489.126: deposits over 10%
3. Florida Statutes §489.1425: the recovery fund notice in contracts over $2,500
4. Florida Statutes §489.103: the owner-builder disclosure
5. Florida Statutes §489.119: license number in ads, bids and contracts
6. Florida Statutes §713.135: notice of commencement and the warning to owners
7. Florida Statutes §713.06: notice to owner and final payment affidavit
8. Miami-Dade County: Florida’s construction lien law (PDF)

This guide is general information, not legal or professional advice. Rules change, so check the sources and ask a licensed pro about your home.