Florida Residential Construction Contract Requirements
The License Number RequirementEvery "communication" a licensed contractor sends to a client or publishes must have the contractor's license number on the "communication." This specifically includes estimates, proposal forms, contract documents, invoices and all advertising material. If you have your company name on your vehicle, you must include your license number. The only exceptions are small promotional items such as pens, hats and other similar items. From a practical perspective, it makes sense to include your license number as it allows your prospective customers to confirm you are licensed contractor and that you are proud of your status.
The Lien Notice RequriementEvery residential construction contract that exceeds $2,500.00 must include a lien law notice on the first page of the contract or on a separately signed page. The language of the required notice is in Florida Statute 713.015. The notice must be substantially the same as the notice shown in the statute and must be in all capitals and bold type .
The Florida Homeowner's Construction Recovery Fund Notice.Every residential construction contract that exceeds $2,500.00 must include this notice in substantially the same form as shown in the statute (FS 489.1425). The statute provides for a $500.00 dollar fine for the first violation and $1,000.00 fine for each subsequent violation.
ConclusionThese requirements were established for the protection of the public. In addition to being a legal requirement, it makes good business sense to comply with the rules. The goal of all construction projects is to do a good job that will result in referrals.
Complying with these rules gives your customer a feeling that you are helping them protect themselves as part of your business relationship with the customer. If your customers feel good about you, they will feel good about recommending you.
Please keep in mind, this discussion was limited to reviewing items you are legally required to have in your contract. There are many other items that should be in your contract in addition to price and a brief summary of the work to be performed. Every contractor should consider its proposal forms and contract forms as the first impression of the quality of its work that a customer will see.