12 Things Your Construction Contract Must Include in Florida

Florida construction law is property-owner friendly in some ways and contractor-friendly in others. The mechanics lien statute, for example, gives contractors and subcontractors strong rights to place liens on your property even if you've already paid the general contractor. Other provisions — like the right to cure defects before litigation — favor contractors who draft their own contracts.

The contract you sign is the document that governs what happens when something goes wrong. A one-page proposal with a signature line is not a construction contract. Here are 12 provisions that must be present before you commit a dollar.

1. Scope of Work in Writing — Specific, Not General

"Renovate kitchen" is not a scope of work. A proper scope defines exactly what is included: new plumbing rough-in, cabinet installation (by whom and to what specification), countertop supply and installation, tile to a defined layout, appliance connections, and a specific finish schedule. Every item that is included should be named. Equally important: every item that is excluded should be named.

Ambiguous scope is the mechanism for change orders. When the contract says "paint the kitchen," it's silent on whether the contractor will caulk, prime, patch, and paint the ceiling — so when you expect it and they didn't price it, you get a change order. A fixed-price contract without a defined scope document is not fixed-price. Get the scope detailed enough that a third-party contractor reading it could produce an accurate bid without calling anyone.

2. Fixed Price or a Clear Cost-Plus Formula

Your contract must state one or the other — and you should push hard for fixed-price. A fixed-price (or "lump sum") contract names a dollar amount for the defined scope. If the contractor finishes under that amount, they keep the difference. If they go over, they absorb it. This structure aligns their interest with efficiency.

A cost-plus contract pays the contractor's actual costs plus a defined markup (e.g., 15% or 20%). If cost-plus is unavoidable, the formula must be explicit: what counts as a reimbursable cost, what the markup percentage is, what categories are excluded from markup, and whether there is a guaranteed maximum price (GMP). Cost-plus without a GMP is an open-ended obligation. JK Prestige Construction uses fixed-price scope documents as the foundation of every contract — learn more about our approach at the JK Way.

3. Payment Schedule Tied to Milestones

A payment schedule that is tied to the calendar — "payment due every two weeks" — pays the contractor regardless of whether work was done. A payment schedule tied to milestones — "payment due upon completion of framing rough-in, verified by inspection" — keeps your money aligned with progress.

Specific milestones to negotiate: mobilization/permit-pull deposit (typically 10–15%), framing complete, rough-in complete (plumbing, electrical, HVAC), drywall complete, substantial completion, and final completion after punch list. Never pay more than 10% above the percentage of work actually completed. Florida law does not require a specific payment structure, so what's in your contract is what governs.

4. Change Order Clause

The change order clause defines what happens when the scope changes — either because you add something, or because a concealed condition requires additional work. A well-drafted change order clause states: (a) no additional work proceeds without a written change order signed by both parties; (b) the change order specifies the cost, the schedule impact, and the reason; and (c) verbal authorizations are not valid regardless of what was discussed on site.

Without this clause, contractors can bill for verbal agreements you may not remember or dispute. With it, every scope change is documented in writing before money changes hands. In Florida's construction environment, where litigation over scope disputes is common, a signed change order record is your protection.

5. Lien Waiver Schedule

Florida's mechanics lien statute (Chapter 713, Florida Statutes) gives contractors, subcontractors, and material suppliers the right to place a lien on your property if they're not paid — even if you paid the general contractor in full. A lien waiver schedule in your contract requires the GC to provide signed lien waivers from major subcontractors and material suppliers at each payment milestone.

There are two types: conditional waivers (signed in exchange for a payment, effective when the check clears) and unconditional waivers (effective regardless of payment status). The schedule should specify which type is required at which milestone. Your payment to the GC should be conditioned on receipt of the appropriate waivers from the prior draw period.

6. Permit Responsibility

The contract must state who is responsible for pulling every required permit, who pays the permit fees, and what happens to the project timeline if permit approval is delayed. In Jacksonville, the Duval County Building Inspection Division handles residential permits; commercial permits may involve additional review by Planning and Development.

Permit responsibility should be the contractor's — a licensed GC must pull permits under their license for most construction work. Permit fees should be included in the contract price, not billed as a separate pass-through without a cap. If the contractor asks you to pull the permit as the owner-builder, understand that doing so may affect your ability to recover from a licensed contractor for defects.

7. Insurance Requirements

Your contract should specify the minimum insurance the GC must maintain for the duration of the project: general liability (GL) coverage amount (typically $1M per occurrence, $2M aggregate), workers' compensation, and — for larger projects — builder's risk. It should also require that you be named as an additional insured on the GL policy, not merely a certificate holder.

The difference matters: a certificate holder is notified if the policy lapses; an additional insured has coverage rights under the policy. Ask for the endorsement by name — "Additional Insured Endorsement CG 20 10" is the standard form. Keep the COI (Certificate of Insurance) on file with the policy expiration date noted so you can request a renewal certificate before it lapses.

8. Warranty Terms

The warranty section must address two separate things: workmanship and materials. Workmanship warranty covers defects in installation — a framed wall out of plumb, a tile installation that cracks. Material warranty covers manufacturer defects in the products installed. The contract should specify the duration of the workmanship warranty (one year is standard in Florida; longer is better and worth negotiating), what it covers, and the process for submitting a warranty claim.

For roofing, the contract should also address manufacturer warranty pass-through: what manufacturer warranty comes with the installed product, whether it transfers to subsequent owners, and whether it requires registration. JK Prestige's contracts include explicit workmanship warranties and manufacturer pass-through terms for all material categories. See more about our renovation process at our renovations page.

9. Dispute Resolution Process

Florida construction contracts frequently include a mandatory dispute resolution provision. This may require mediation before litigation, or binding arbitration in lieu of court. Know which one your contract requires and what it means: mediation is non-binding (both parties can still go to court); binding arbitration is final and waives your right to a jury trial.

The contract should also specify the governing law (Florida) and venue (the county where the project is located — Duval County for Jacksonville projects). Attorney's fees provisions are worth reviewing: Florida's "prevailing party" attorney's fee statute can apply to construction disputes, which affects the economics of litigation.

10. Substantial Completion and Final Completion Definitions

"Substantial completion" and "final completion" are terms with specific meaning in construction law and should be defined explicitly in your contract. Substantial completion typically means the project is usable for its intended purpose even if minor punch list items remain. Final completion means all punch list items are resolved, inspections are passed, and the close-out documents (as-builts, warranties, lien waivers) are delivered.

The contract should tie your final payment to final completion, not substantial completion. It should also specify that the contractor provides a written punch list at substantial completion and a defined deadline (e.g., 30 days) to complete all punch items. Vague language like "when the project is done" creates disputes about when your final payment obligation is triggered.

11. Liquidated Damages Clause for Larger Projects

For commercial, healthcare, or large residential projects where schedule matters financially, a liquidated damages clause specifies a per-day dollar amount that the contractor owes if they don't meet the agreed completion date. This is not a penalty — it's a pre-agreed estimate of the daily cost to you of a delay (carrying costs, lost revenue, temporary space rental).

Liquidated damages are standard in commercial construction and increasingly common in high-value residential contracts. They require an agreed substantial completion date in the contract and a defined list of excusable delay events (weather, permitting delays, owner-directed changes). For Jacksonville healthcare projects, where clinical operations are affected by schedule overruns, liquidated damages are a reasonable risk allocation tool.

12. Subcontractor Disclosure or List

Florida law does not automatically require a GC to disclose their subcontractors. But your contract can — and should — require disclosure of all major subcontractors before work begins, along with the right to object to a substitution. This matters because a listed specialty subcontractor with a track record is not interchangeable with an unknown substitute who underbid them at the last minute.

A subcontractor list also supports your lien waiver management: if you know who the plumber, electrician, and tile installer are, you can track whether lien waivers from each trade are being delivered with each draw request. This is especially important in Florida, where a properly filed Notice to Owner from a subcontractor starts a clock on your lien exposure. JK Prestige provides subcontractor disclosure as standard — it's part of the transparency that the JK Way is built on.

A contract that includes all 12 of these provisions protects your investment from the first shovel to the final inspection. JK Prestige Construction's standard contract addresses each item as a matter of course. Get a written estimate in 48 hours. Call (904) 944-0278 or get a free consultation.