Florida has the most contractor fraud complaints of any state in the nation. Part of that is the state's size and growth. Part of it is the post-hurricane repair cycle that brings unqualified operators into the market. And part of it is avoidable — the same 10 mistakes show up in complaint after complaint filed with the Florida DBPR.

These mistakes are preventable. Here's what they are and what you do instead.

Contractor qualification documents, insurance verification, and a blank checklist organized on a clean desk
Editorial illustrationLicensing, insurance, references, scope, permitting, payment terms, and change control are the practical checks that protect a homeowner before work begins.

Mistake 1: Not Verifying the License Before Anything Else

The most expensive mistake, by far. Every year, Florida homeowners pay unlicensed "contractors" for work that fails, creates safety hazards, or has to be torn out.

What homeowners do: Take the contractor's word for it. Accept a business card with a license number on it. Google the company name and see a professional website.

What to do instead: Go to myfloridalicense.com. Search by the license number or the contractor's name. Confirm: active status, correct license type (CGC1 or CRC1 for roofing), and that the qualifier name matches who you're talking to.

This takes 90 seconds. There is no excuse for skipping it.

Mistake 2: Choosing the Lowest Bid Without Understanding Why It's Lower

A bid that's 30% below the other two estimates is not a deal. It's a question: what's missing?

What homeowners do: Pick the lowest bid because they assume all GCs are the same and the low one is just hungrier.

What to do instead: Ask the low bidder to walk through their bid line by line. Where are they saving money? Are they excluding permits? Using lower-grade materials? Relying on labor they don't have yet? A legitimate low bid has a legitimate explanation. A dangerous low bid reveals gaps when you ask.

Mistake 3: Paying Too Much Upfront

A legitimate contractor does not need 50% of the total project cost before any work starts. Large deposits fund the contractor's operation — not your project.

What homeowners do: Pay 40%, 50%, or even more upfront because the contractor says they need it for materials.

What Florida law says: Florida Statute 489.126 requires contractors to apply deposits to the project within 30 days. For residential projects over $2,500, contractors cannot require more than 10% deposit before the work begins — and that provision has specific exceptions.

What to do instead: Structure payments to track completed work. A reasonable deposit is 10% to 15%. Progress payments follow defined milestones (framing complete, drywall complete). Final payment — at least 10% — releases after your walkthrough and sign-off.

Construction planning table with drawings, measuring tools, a blank clipboard, and coordination materials
Editorial illustrationA useful contract connects the scope, schedule, allowance assumptions, payment milestones, permit responsibility, and the process for changes rather than leaving those details to memory.

Mistake 4: Signing a Contract Without Reading It

Construction contracts are not interchangeable. The change order clause, the discovery clause, the warranty language, the dispute resolution process — these terms define your rights when things go wrong.

What homeowners do: Skim to the price and sign.

What to do instead: Read four specific sections before you sign:

If the contract doesn't have a discovery clause and you're doing renovation work on a house built before 1990, you have no written framework for what happens when the contractor opens a wall and finds something expensive.

Mistake 5: Skipping the Permit

Some contractors offer to skip permits to "save you money." What they're actually doing is shifting liability to you.

What happens without permits:

What to do instead: Require the contractor to pull all permits before any work starts. In Florida, the licensed contractor of record is responsible for pulling permits. It's not your job, and a legitimate contractor won't ask you to do it.

Mistake 6: Hiring a Contractor Without Workers' Compensation

If a worker gets injured on your property and the contractor doesn't have workers' compensation insurance, you may be directly liable.

What homeowners do: Accept a certificate of insurance without verifying it's current and includes workers' compensation.

What to do instead: Request a current certificate of insurance. Call the carrier's number on the certificate to verify it's active. Confirm that workers' compensation is included, not just general liability. In Florida, roofing contractors are required to carry workers' comp — no exemptions.

Mistake 7: Letting Work Start Without a Written Scope

Verbal scopes generate disputes. Period.

What homeowners do: Have a detailed conversation with the contractor about what they want, trust that the contractor understood, and sign a contract that says "remodel kitchen per discussion."

What to do instead: The contract scope section should describe every element of work at the trade level. Not "redo the kitchen" — but "remove and dispose of existing cabinets and countertops, install [specific cabinet line], install [specific countertop material], relocate sink to [location], install new electrical circuit for island, tile backsplash with [tile spec]."

If it's not written, it's not in scope when there's a disagreement.

Mistake 8: Not Checking References (Real Ones)

A contractor with five-star Google reviews and a professional website might still be the wrong choice for your project type.

What homeowners do: Read Google reviews. Take the contractor's word that they've done similar projects.

What to do instead: Ask for three references from the past 18 months for projects of the same type and size as yours. Get phone numbers. Call. Ask:

One phone call to a real past client is worth more than 50 Google reviews.

Mistake 9: Ignoring the Change Order Process Until It's Too Late

Change orders are the most common source of homeowner-contractor disputes in Florida. Most disputes don't start with a contractor who planned to overcharge — they start with a process that had no written framework for changes.

What homeowners do: Approve changes verbally. Say "yes" when the contractor asks about an upgrade without discussing the cost. Find out the total at the end.

What to do instead: Every change to scope or price requires a written change order, signed by both parties, before the work proceeds. If your contract doesn't require this explicitly, write it in before you sign. The rule: no verbal approvals, no retroactive change orders, no "we'll sort it out at the end."

Residential renovation rough-in inspected with open framing, routed services, and a clean protected work area
Editorial illustrationA final walkthrough works best when the remaining work is documented, assigned, and checked against the agreed scope before the project is considered complete.

Mistake 10: Not Doing a Final Walkthrough With a Written Punch List

The final payment is your leverage. Once it's paid, it's much harder to get return calls on items that weren't caught before closeout.

What homeowners do: Do a walk-through that feels complete, pay the final invoice, and then notice things over the next week.

What to do instead: Walk the project with the contractor before the final payment. Write down every item that isn't complete or isn't right — specific location, specific description. Have the contractor sign acknowledging the list. Hold the final payment until the punch list is closed. Then do a second walkthrough to confirm before releasing.

The contractor who is reluctant to do a written punch list is telling you something about how they handle the end of projects.

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Frequently Asked Questions

Is it illegal to hire an unlicensed contractor in Florida?
Florida law does not make it illegal for a homeowner to hire an unlicensed contractor. However, working with an unlicensed contractor voids many homeowner protections — insurance coverage for the work, DBPR complaint rights, and Florida's contractor recovery fund. The contractor is the one breaking the law; the homeowner absorbs the consequences.
What is the Florida DBPR and how does it help homeowners?
The Department of Business and Professional Regulation licenses Florida contractors and handles complaints against licensed contractors. If a licensed contractor commits fraud, abandons a project, or produces grossly deficient work, a DBPR complaint can lead to fines, license suspension, or revocation. The Recovery Fund (funded by licensed contractor fees) can compensate homeowners who suffer financial harm from a licensed contractor's violations. Unlicensed contractors are exempt from both of these remedies.
What is a reasonable payment schedule for a home renovation in Florida?
A reasonable structure: 10% to 15% deposit at contract signing, progress payments at defined milestones (demo, framing, rough MEP, drywall, finishes), and 10% final payment held until completion walkthrough and sign-off. Avoid any request for more than 20% upfront before work starts.
How do I know if a contractor's insurance is legitimate?
Call the carrier number shown on the certificate — not a number the contractor gives you separately. The carrier's representative can confirm whether the policy is active, what coverage it includes, and whether you're listed as additional insured. Certificates can be forged; a verification call to the carrier is the only reliable check.