A well-drafted contractor agreement is essential for any construction project in Florida. Whether you are a contractor, subcontractor, or property owner, a detailed contract helps prevent disputes and ensures all parties understand their rights and responsibilities. Florida law has specific requirements for construction contracts, making it critical to work with an experienced Florida construction lawyer to draft or review your agreements.
At Jonathan P. Cohen, P.A., we focus on construction law, helping clients navigate the complexities of contractor agreements to protect their interests. Below, we outline the key elements every contractor agreement in Florida should include.
- Scope of Work
Clearly defining the scope of work is one of the most critical components of a contractor agreement. This section should outline:
- A detailed description of the work to be performed
- The materials and equipment to be used
- Project timelines and deadlines
- Compliance with Florida building codes and regulations
A well-defined scope of work helps avoid disputes regarding what was agreed upon at the outset of the project.
- Payment Terms and Schedule
The contract must specify the total project cost, payment milestones, and any retainage provisions. Best practices mandate that contractor agreements include:
- The method of payment (lump sum, cost-plus, time and materials, etc.)
- Schedule of payments tied to project milestones
- “Pay when paid” provision – a clause that conditions a contractor’s obligation to pay its subcontractor on the contractor’s receipt of payment from the project owner.
- Late payment penalties and dispute resolution processes
Under Florida’s Construction Lien Law, contractors and subcontractors have lien rights, meaning they can file a lien against the property if they do not receive payment. A well-structured agreement ensures all parties understand their financial obligations.
- Licensing and Insurance Requirements
Florida law requires contractors to be properly licensed for certain types of work. The agreement should specify:
- The contractor’s license number and verification of active status
- Liability insurance and worker’s compensation coverage
- Indemnification clauses to protect against potential claims
If a contractor does not have proper licensing and insurance, the contract could be deemed unenforceable, leading to significant legal and financial consequences for the contractor.
- Change Orders
Changes are inevitable in construction projects. The contract should outline a clear process for handling change orders, including:
- Written documentation of requested changes
- Requirement of a signed change order before work begins
- Adjustments to payment and timeline
By formalizing change order procedures, contractors and property owners can avoid misunderstandings that often lead to disputes.
- Warranties and Guarantees
A contractor agreement should specify any warranties provided on materials and workmanship. In Florida, contractors must comply with the implied warranty of habitability for residential construction, meaning work must be completed to an acceptable standard. The agreement should outline:
- The duration of any express warranties
- Procedures for addressing defects
- Responsibility for repairs and replacements
- Dispute Resolution
Construction projects can sometimes lead to disputes. A strong contract should include a dispute resolution clause outlining:
- Mediation
- Whether litigation or arbitration is required
- Venue for legal proceedings
- Governing law
- Attorney’s fees and costs allocation
Including a dispute resolution process can help avoid costly litigation and lead to a quicker resolution.
- Termination and Default Clauses
Contracts should specify the conditions under which either party can terminate the agreement.
This includes:
- Breach of contract terms
- Failure to meet deadlines
- Non-payment issues
- Termination for cause
- Termination for convenience
Proper termination provisions ensure that parties have a legal pathway to end the agreement if obligations are not met.
- Force Majeure Clause
A force majeure clause protects parties from unforeseeable circumstances that prevent contract fulfillment, such as natural disasters or labor strikes. Given Florida’s susceptibility to hurricanes and severe weather, including a force majeure clause can be crucial.
Protect Your Interests with a Florida Construction Contract Lawyer
Drafting a solid contractor agreement is essential to avoiding legal complications. Working with a knowledgeable Florida construction contract lawyer ensures your contract complies with Florida law and protects your rights.
At Jonathan P. Cohen, P.A., we have extensive experience assisting contractors, property owners, condominium associates, and developers with construction contracts. Whether you need contract drafting, review, or legal representation in a dispute, we are here to help.
If you need expert legal guidance on your contractor agreement, contact Jonathan P. Cohen, P.A. today. Our firm provides comprehensive legal solutions tailored to the unique needs of Florida’s construction industry. Call us now to schedule a consultation and ensure your contract safeguards your interests. Call (954) 462-8850.
The information provided in this article does not, and is not intended to, constitute legal advice. The content in this article is presented for general informational purposes only.