Construction Contracts Overview

Building or renovating your home can be an exciting time; however, to ensure the process goes smoothly and is completed successfully, it is vital to establish a legally binding contract between you and your contractor. This will provide clear expectations for each party and will ensure that the parties have a mutual understanding of those expectations throughout the construction project. In Florida, there are specific construction contract rules and regulations that homeowners and contractors must thoroughly follow, which are designed to ensure that all parties are properly protected.

Florida construction contract laws are regulated by Florida Statutes, which require that these contracts contain certain provisions addressing matters, such as, the construction recovery fund, the disclosure of the professional contractor’s business license number, the construction lien law disclosure, and the procedures for addressing construction defects. Other material terms should also be addressed in the construction contract as well, to ensure that all parties involved in the construction project are protected. It is also vital to get help from Orlando real estate law attorneys who will ensure that the contract complies with all applicable laws.

Key Components of Construction Contracts

Construction jobs are costly, but they are vital to contributing towards the increase of the overall value of your property. That is why understanding Florida construction law and contract law are essential. Because hiring a general contractor carries many risks, you should only start the project with a written agreement, which clearly sets forth the expectations and the obligations of each party.

Construction contracts should contain certain key components, such as:

• The names and the contact information of both the owner and the contractor;
• A description of the project scope, including any materials and labor to be used;
• Payment terms and conditions;
• An estimated completion date and payment schedule;
• The contractor’s insurance details, including details of workers’ compensation coverage;
• Any warranties or guarantees provided by the contractor;
• A clause outlining how disputes will be resolved; and
• And any other relevant terms or conditions.

It is also important to note that Florida construction contracts are only valid if they are in writing and signed by both parties. Additionally, verbal agreements are not binding and can be challenging to prove. With so many details and regulations to consider, it is essential to work with an Orlando real estate attorney who can make sure that the contract is legally sound.

Have an experienced real estate attorney review your contract to ensure that it meets all these requirements at a minimum. More importantly, contracts should also include the business license number of the contractor with the Florida Department of Business and Professional Regulation (DBPR). Any contractor performing construction work must be registered with the DBPR and must have a valid contractor’s license. This can be verified online on the Florida DBPR’s website.

Need Help with Your Construction Contracts?

Nishad Khan, P.L. is one of the best real estate lawyers Orlando. Attorney Khan and his team have extensive experience providing legal advice and assistance to contractors and to owners involved in construction projects. They are well-versed in all aspects of Florida construction law, including contract formation, dispute resolution, and more.

If you are starting a construction project or if you need help with real estate law matters, contact Nishad Khan, P.L. today to schedule a consultation. We will assist you with your construction contract and will ensure it meets all the requirements so you can be confident that your project complies with Florida law.