--- title: "Ten questions to ask before you sign a builder contract" description: "Ten plain questions to ask a Florida builder before you sign, with the state rule on large first payments, license checks and construction loan basics." url: https://build813.multisites.ai/journal/ten-questions-before-you-sign-a-builder-contract publisher: Halo Homes phone: +1-813-956-1972 quote: https://build813.multisites.ai/contact --- ![Outdoor kitchen with a grill and stainless hood under a covered balcony](https://build813.multisites.ai/_astro/ladoga-outdoor-kitchen.jlm4iJcV_1lybjL.avif) # Ten questions to ask before you sign a builder contract Before you sign, check the license, ask how the price is set, and ask when the builder will pull permits and start work. Florida law s. 489.126 covers a first payment above 10 percent of the price. Also ask about allowances, change orders and how loan draws are paid. Published October 29, 20264 min read5 sources ## What should you ask a builder before you sign? Ask ten questions, and get each answer in writing. This post gives you the list. It rests on three official sources: the Florida statute on contractor payments, the state license database, and the Consumer Financial Protection Bureau (CFPB). This is general information, not legal advice. Ask a Florida attorney to review any contract you plan to sign. ## Is the builder licensed for this work? Question 1 is the license. The Florida Department of Business and Professional Regulation (DBPR) says you can “verify licenses by name or license number” in its records. Look up the person and the company. Then read the license type. DBPR explains two kinds. A certified contractor holds a certificate of competency and may contract in any jurisdiction in the state. A registered contractor met the competency rules of one local jurisdiction and may contract only there. Occupation codes start with C for certified and R for registered. Ask which license will be used for your job. ## What does Florida law say about the first payment? Question 2 is about money up front. Section 489.126 of the Florida Statutes covers it. The text says “a contractor who receives, as initial payment, money totaling more than 10 percent of the contract price for repair, restoration, improvement, or construction to residential real property must” do two things: 1. Apply for the permits needed for the work within 30 days after the payment date, unless the work needs no permit. 2. Start the work within 90 days after all necessary permits are issued. There is an exception. The statute says this applies “unless the contractor has just cause” or the person who paid “agreed, in writing, to a longer period.” The statute also says the term “contractor” covers a person doing the work “without regard to the licensure of the person.” Ask your builder: What is the first payment? When will you apply for permits? Is any longer period written into the contract? ## What are the ten questions? # Question Why it matters 1 Which license covers this job, and can I verify it? DBPR lets you search by name or number. 2 How large is the first payment, and when are permits applied for? Section 489.126 sets 30 and 90 day periods above 10 percent. 3 Is the price fixed or cost plus? The two types shift risk differently. 4 What is in the scope, and what is excluded? Gaps in scope become extra cost later. 5 Which items are allowances? An allowance is a set budget for an item not yet chosen. 6 How are change orders priced and approved? Changes should be written and signed before work. 7 When is each payment due? Tie payments to finished stages, not dates alone. 8 Who pulls the permits and handles inspections? Know who owns each step. 9 What plans and specifications are part of the contract? The contract should name the documents. 10 What happens if we disagree? Know the process before there is a dispute. ## How is the price set? Questions 3 to 6 are about price. A [fixed-price contract](https://build813.multisites.ai/glossary/fixed-price-contract) sets one total for a defined scope. A [cost-plus contract](https://build813.multisites.ai/glossary/cost-plus-contract) bills actual costs plus a fee. Neither is better in every case. Ask which one is offered and what each one means for your budget. An [allowance](https://build813.multisites.ai/glossary/allowance) is a placeholder amount for a selection you have not made, such as tile or lighting. Ask for the list of allowances, the amount of each, and what happens if your choice costs more. A [change order](https://build813.multisites.ai/glossary/change-order) is a written change to scope, price or schedule. Ask how it is priced and whether you sign before the work starts. ## How do payments and loan draws work? If you borrow to build, the loan shapes the payments. The CFPB says a construction loan “is usually a short-term loan that provides funds to cover the cost of building or rehabilitating a home.” The money is typically provided in a series of advances as construction progresses. Payments sometimes start six to 24 months after the loan is made. You may be able to convert it to a conventional mortgage, but if it does not convert automatically you may have to reapply. The CFPB says your choices depend on the lender and your credit history. Ask your lender how a [draw schedule](https://build813.multisites.ai/glossary/draw-schedule) works and what proof it needs before each advance. Then make sure the contract’s payment schedule matches it. Read more about the [construction loan](https://build813.multisites.ai/glossary/construction-loan) in the glossary, and see our guide to [what it costs to build a custom home in Tampa](https://build813.multisites.ai/cost-to-build-custom-home-tampa). ## What should you do after you get the answers? Compare the answers across more than one builder. Put every promise in the contract. Keep copies of every payment, change order and permit. If a contractor does not meet the 30 and 90 day periods, the statute describes a written demand sent by certified mail. Talk to an attorney about that step. ## What is the next step? If you want to talk through your project and your questions, call Halo Homes at (813) 956-1972 or write through the [contact page](https://build813.multisites.ai/contact). ## Frequently asked questions ### What does Florida law say about a large first payment to a contractor? Section 489.126 says a contractor who receives an initial payment of more than 10 percent of the contract price for residential work must apply for permits within 30 days and start work within 90 days after permits issue. Exceptions apply for just cause or a written agreement for a longer period. ### How do I check a Florida contractor's license? The Department of Business and Professional Regulation (DBPR) says you can search its records for licensed businesses and professionals by name or license number. Check the license type, since a certified license works statewide and a registered license works only in the local area where it was issued. ### Do I need to understand my construction loan before I sign? Yes. The CFPB says a construction loan is usually short term and funds come in advances as work progresses. Payments sometimes start six to 24 months after the loan is made. You may be able to convert it to a conventional mortgage, depending on the lender and your credit. ## Terms on this page - [Fixed-price contract](https://build813.multisites.ai/glossary/fixed-price-contract) - [Cost-plus contract](https://build813.multisites.ai/glossary/cost-plus-contract) - [Construction loan](https://build813.multisites.ai/glossary/construction-loan) - [Draw schedule](https://build813.multisites.ai/glossary/draw-schedule) - [Change order](https://build813.multisites.ai/glossary/change-order) - [Allowance](https://build813.multisites.ai/glossary/allowance) ## Sources 1. [Florida Senate: Section 489.126, Moneys received by contractors](https://www.flsenate.gov/Laws/Statutes/2025/489.126) 2. [Florida Senate: Section 489.126 (exceptions)](https://www.flsenate.gov/Laws/Statutes/2025/489.126) 3. [Florida DBPR: Construction Industry Licensing](https://www2.myfloridalicense.com/construction-industry/) 4. [Florida DBPR: certified contractor](https://www2.myfloridalicense.com/construction-industry/) 5. [Consumer Financial Protection Bureau: What is a construction loan?](https://www.consumerfinance.gov/ask-cfpb/what-is-a-construction-loan-en-108/) Written for Halo Homes and checked against the sources above on October 29, 2026. City, county and code rules change, so check the linked page before you act. ## Keep reading - [What it costs to build a custom home in TampaNo official source publishes a Tampa price for custom homes. National and regional data give a starting range: NAHB's 2024 analysis puts the median custom home at $166 per square foot nationally and $155 in the South Atlantic division, both without land. Your lot, design and finishes then move the number.](https://build813.multisites.ai/cost-to-build-custom-home-tampa) - [Building on your own lot in Tampa: what to check, finance and verifyBuilding on your lot means a builder constructs your home on land you own or are buying. Before you commit, check the lot's flood zone, zoning district, historic status and trees. Then compare construction loans and confirm your contractor's Florida license. Each step is a public record you can verify.](https://build813.multisites.ai/build-on-your-lot-tampa) - [How construction loans for a custom home workA construction loan is usually a short-term loan that pays for building a home. The CFPB says the money comes in a series of advances as construction progresses. Payments sometimes start six to 24 months after the loan is made. You may pay off a lump sum or convert to a conventional mortgage.](https://build813.multisites.ai/guides/construction-loans-for-custom-homes) - [Building a custom home in South Tampa: what the City's rules mean for your lotBuilding a custom home in South Tampa starts with the lot, not the plan. Five City checks shape what you can build: the zoning district, the FEMA flood zone, historic review, tree permits and the new construction permit. Rules attach to each parcel, so confirm them before you design.](https://build813.multisites.ai/custom-home-builder-south-tampa) - [How to choose a luxury custom home builder in Tampa BayA luxury custom home is designed for one owner and built on that owner's lot to a high level of finish. No law defines luxury, so judge a builder by three things: who owns the design, what the Florida license covers, and what the contract fixes in writing before work starts.](https://build813.multisites.ai/luxury-custom-home-builder-tampa) - [What Construction Cost Per Square Foot Data Really ShowsCost per square foot is a published median or average for new homes, not a price for your house. The 2024 NAHB figure for custom homes is $166 per square foot, excluding land. It does not include Tampa lot or flood factors. Use it to check scale, then compare real quotes line by line.](https://build813.multisites.ai/guides/construction-cost-data-explained) ![Front of a two-story white modern home with wide stone steps and palms](https://build813.multisites.ai/_astro/front-entry-stair.uOUDI-Bb_ZQcaix.avif) ## Start your home. Tell Halo about your lot, your plans and your timing. A call or a short note is enough to begin. [Start your home](https://build813.multisites.ai/contact) Or call [(813) 956-1972](tel:+1-813-956-1972)