Trent Cotney, Partner, Adams and Reese LLP
Payment disputes are a common challenge for roofing contractors in Florida, where fluctuating weather conditions, changing regulations and high demand for roofing services can create friction between contractors and property owners. These disputes can lead to significant financial losses, legal battles and damage to a contractor’s reputation. To safeguard their business, roofing contractors must adopt proactive legal strategies that minimize the risk of payment issues.
A strong, legally binding contract is the foundation of a successful roofing project. Florida law requires written contracts for home improvement projects exceeding $1,000 and roofing contractors should ensure their contracts include:
■ Clear Payment Terms: Define the total contract price, deposit requirements, milestone payments and final payment due date. Florida’s construction laws allow contractors to request a reasonable deposit but contractors should avoid excessive upfront payments to prevent disputes.
■ Scope of Work: Clearly outline the work to be performed, materials to be used and expected completion timeline. It is important to identify not only what you are going to do but also what you are not doing. For example, if you are not replacing skylights or gutters, make sure to mention that in the contract and disclaim liability for it.
■ Change Order Policy: Establish a written process for any changes to the contract price or work scope. Consider using time and materials provisions in your contract for known and anticipated extras to avoid change order disputes.
■ Statutory Notice: Under Florida law, contractors (primarily residential contractors) must include a variety of statutory warnings in their contracts, including a lien notice, reference to the Florida Homeowners’ Construction Recovery Fund, an insurance warning for jobs involving insurance claims and more.
■ Dispute Resolution Clause: Define how disputes will be resolved, whether through mediation, arbitration or litigation.
Florida’s lien laws provide roofing contractors with a powerful tool to secure payment but strict compliance is necessary. Contractors should:
■ Provide a Notice to Owner (NTO): If not contracting directly with the property owner, the contractor must send an NTO within 45 days of first providing labor or materials.
■ File a Claim of Lien Timely: If payment is not received, a claim of lien must be filed within 90 days of last day of work.
■ Enforce the Lien Within One Year: If the lien is not satisfied, the contractor must initiate a foreclosure lawsuit within one year, unless otherwise accelerated by a notice of contest of lien or other means. Failure to follow these steps can result in the loss of lien rights, making it difficult to recover unpaid amounts.
Proper documentation is essential in resolving payment disputes. Contractors should maintain records of:
■ Signed contracts, change orders and amendments
■ Work progress reports and jobsite photos
■ Communication with the property owner, including emails and text messages
■ Invoices, receipts and payment records.
A well-documented project can provide critical evidence if a dispute arises and strengthens a contractor’s legal position. Remember, in construction, the party with the best paper wins the day.
Requiring progress payments rather than waiting for a lump sum at the end of the project reduces financial risk. Contractors should:
■ Break payments into reasonable milestones, such as a deposit, material delivery, project midpoint and final completion. With commercial projects, limit retainage and payments dependent upon final completion.
■ Ensure clients sign off on completed work before moving to the next phase.
It’s the customers you don’t take that make you successful. Not all clients are financially stable or reliable. Before entering into an agreement, roofing contractors should:
■ Conduct background checks on clients with large projects.
■ Check public records for past lawsuits or liens against the client.
■ Request proof of financing if the project is substantial.
Roofing contractors can minimize payment disputes by using well-drafted contracts, understanding lien laws, maintaining proper documentation and enforcing structured payment schedules. Taking proactive legal steps ensures smoother operations, stronger financial security and better client relationships. When disputes do arise, seeking legal advice early can prevent costly litigation and protect a contractor’s bottom line.
The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.
Trent Cotney is a partner and Construction Team Leader at the law firm of Adams and Reese LLP and FRSA General Counsel. You can reach him at trent.cotney@arlaw.com or 866-303-5868.
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