5 Red Flags in a Florida Construction Contract Every Homeowner Should Know

By Smaili Constantino | Florida Certified Building Contractor CBC#1269902 & Licensed Florida Attorney

Constantino Construction · Serving Naples, Fort Myers, Cape Coral & Southwest Florida Since 2003

Every year, homeowners across Lee and Collier County sign construction contracts they don't fully understand — and pay for it in cost overruns, unfinished projects, and legal disputes that could have been avoided entirely. Most homeowners assume that because a contractor provided the contract, it must be standard. It isn't. Construction contracts are written by the party who writes them — and that party's interests are built into every line. I review construction contracts as both a licensed contractor and a licensed Florida attorney. What I see repeatedly are the same warning signs that turn routine builds into financial nightmares.

Here are the five you should never overlook.

RED FLAG #1: No Defined Completion Date — or a Vague One

A contract that says work will be completed "in approximately 90 days" or "as conditions permit" gives a contractor unlimited runway to delay your project indefinitely. Florida courts have consistently held that vague completion language is nearly unenforceable. Without a specific start date, milestone schedule, and substantial completion deadline, you have no legal basis to hold a contractor accountable for delays.

What a proper contract must include: A specific project start date, key milestone dates (foundation, framing, rough-ins, final), a substantial completion date, and a liquidated damages clause — a fixed dollar amount per day the contractor runs over the agreed deadline.

Red flag language to watch for: "work to be completed in a reasonable time," "subject to weather and material availability," or any completion clause with no specific calendar date. Without a hard deadline and consequences for missing it, a contractor has every incentive to deprioritize your project when a higher-paying job comes along.

RED FLAG #2: A Lump-Sum Price With No Itemized Breakdown

A single-number contract price sounds simple. In practice, it creates an information imbalance that almost always favors the contractor. When you don't know what you're paying for individual line items — labor, materials, subcontractors, permits, overhead — you have no ability to verify that the work completed corresponds to the money paid. You also have no baseline for evaluating change orders when they arrive.

What a proper contract must include: A detailed schedule of values breaking down the total price by phase or cost category, allowance amounts for materials not yet selected (tile, fixtures, cabinetry), and clear language on how actual costs compare to allowances.

RED FLAG #3: Unbalanced Draw Schedule — Front-Loaded Payments

Florida Statute §489.126 requires that a contractor apply funds paid for a specified purpose to that purpose. Despite this, many contracts require large upfront payments long before that value is delivered. A draw schedule requiring 40% at contract signing and another 30% at permit issuance exposes you to significant financial loss if the contractor abandons the project or performs defective work.

What a balanced draw schedule looks like: No more than 10–15% at signing (mobilization), subsequent draws tied to verified inspected milestones, a meaningful retainage (5–10%) held until final completion and punch list resolution, and final payment only after certificate of occupancy.

RED FLAG #4: No Change Order Process — or a Waived One

Change orders are inevitable on any construction project. A contract that allows a contractor to proceed with changes based on verbal authorization — or that deems your silence as acceptance — strips you of cost control. These clauses routinely produce disputes and padding on the final bill.

What a proper change order process includes: A written change order requirement for any scope modification regardless of dollar amount, owner signature required before work on the change begins, and clear language on how change order pricing is calculated.

RED FLAG #5: No License Verification or Insurance Certificate Requirements

A contract that doesn't explicitly identify the contractor's license number and require proof of current insurance gives you no recourse if that contractor turns out to be unlicensed or underinsured. Unlicensed contractor work cannot be permitted — and work performed without permits may need to be demolished and redone at your expense.

What a proper contract must include: The contractor's state license number (verifiable at MyFloridaLicense.com), a requirement for a current Certificate of Insurance for general liability and workers' compensation, and identification of any subcontractors.

For reference: Constantino Construction holds Florida Certified Building Contractor License CBC#1269902, verifiable through the Florida DBPR.

WHAT TO DO IF YOUR CONTRACT HAS THESE RED FLAGS

If you've already signed a contract with one or more of these issues, you have options — but act before the project starts or before a dispute escalates. A construction contract review by an attorney who also holds a contractor's license covers both dimensions: the legal enforceability of the language, and the practical construction implications of what it says.

Ready to have your construction contract reviewed?

Call or text (239) 900-5453 — Monday through Friday, 7 AM to 6 PM.

Email: info@constantinoconstruction.com for a free initial consultation.

Constantino Construction · FL Certified Building Contractor CBC#1269902 · Licensed & Insured · Serving Southwest Florida Since 2003