How to Hire a Contractor to Renovate Your Home in Palm Beach County: License Checks, Permits and Post-Storm Scams

Learning how to hire a contractor to renovate your home can save you thousands of dollars and a lot of stress. In Palm Beach County, the process has a few local twists. Some trades are licensed by the state, while others are certified by the county. Florida lien law can also make you pay twice if you skip a step. And after every hurricane, unlicensed crews show up looking for fast deposits. This checklist walks you through each step, from the first phone call to the final payment.

Key takeaways

• Check every contractor in two places: the state DBPR license search and the Palm Beach County contractor lookup.
• Under Florida law, a contractor who takes more than 10% of the price up front must apply for permits within 30 days and start work within 90 days after permits are issued.
• Ask for a written release of lien from anyone who sends you a notice to owner before you make each payment.
• Unlicensed contracting during a declared state of emergency is a third-degree felony in Florida.
• Permitted, documented work is easier to explain to buyers, appraisers and insurers when you sell.

Why it matters how you hire a contractor to renovate your home

A renovation is often the biggest check a homeowner writes after the down payment. So the person you hire matters as much as the design. A licensed contractor has passed an exam, carries insurance and answers to a licensing board. An unlicensed one answers to no one.

The stakes also go beyond the project itself. Palm Beach County's contractor regulation page warns that problems after unlicensed work may not be covered by your homeowners insurance. In addition, unpermitted work can surface years later during a sale, when a buyer's inspector or the building department spots it. At that point, fixing it costs more and can stall a closing.

Step 1: How to hire a contractor to renovate your home starts with the license

Florida splits contractor licensing between the state and local governments. That is why a single search is not enough.

The state license search

The Florida Department of Business and Professional Regulation (DBPR) licenses general, building, residential, roofing, plumbing, electrical, HVAC and pool contractors, among others. You can look up any license on the DBPR license search. Search by name or license number. Then confirm that the license is current and active, that the name matches the company on your contract, and that there is no open discipline.

The Palm Beach County lookup

Next, check the county. The Construction Industry Licensing Board of Palm Beach County and its Contractors Certification Division certify many specialty trades that the state does not license. The county's contractor regulations page tells homeowners to verify license and insurance, ask to see liability and workers' compensation coverage, get references and use a written contract. You can call the division at 561-233-5525 if the online search is unclear.

If the contractor holds neither a state license nor a county certificate for the work you need, stop there. A friendly price does not make up for that gap.

Step 2: How to compare bids when you hire a contractor to renovate your home

Once you have two or three licensed contractors, ask each for a written bid built on the same scope. Otherwise, you end up comparing a kitchen with cabinets and tile against a kitchen without them.

A useful bid lists the following:

• The full scope of work, room by room.
• Materials by brand or grade, plus who buys them.
• Who pulls the permits and who pays the permit fees.
• A payment schedule tied to finished stages of work, not to dates.
• A start date and an estimated finish date.
• How change orders are priced and approved.

Also, ask for two or three recent references from similar jobs in the county. Then call them. A quick question such as "Would you hire them again?" tells you a lot.

Step 3: What to read in the contract before you sign

A good contract protects both sides. Still, it only helps if you read it. Make sure the license number on the contract matches the one you looked up. In addition, check that the company name is the same as the name on the license and the insurance certificate.

The Florida lien law notice

Florida requires a specific warning in many home improvement contracts. Under section 713.015 of the Florida Statutes, direct contracts over $2,500 for work on a home of up to four units must include a notice about construction liens. The notice explains that unpaid subcontractors and suppliers may look to your property for payment, even if you have already paid your contractor in full.

So read that notice closely. It describes the most common way homeowners get burned on a remodel.

Step 4: How to protect payments when you hire a contractor to renovate your home

Deposits are where most renovation disputes start. Fortunately, Florida law gives you some protection here.

According to section 489.126, a contractor who receives an initial payment of more than 10% of the contract price for residential work must apply for the needed permits within 30 days. Then the work must start within 90 days after the permits are issued. There are exceptions for just cause or a written agreement to a longer timeline. However, a contractor who takes a large deposit and disappears can face criminal charges that grow with the amount taken.

Lien releases and the notice of commencement

For larger projects, the owner records a notice of commencement with the Clerk and posts a copy at the job site. Section 713.13 warns that payments made after the notice expires are improper payments and can result in paying twice. So keep the notice current until the job is done.

Also, keep a file of every notice to owner you receive from a subcontractor or supplier. Before each payment, ask the contractor for a written release of lien from each of those companies. As a result, you only pay for work and materials that are already paid down the line.

Step 5: Make sure permits are pulled

Most structural, electrical, plumbing, mechanical and roofing work needs a permit. Your city building department or, in unincorporated areas, the county issues it. A licensed contractor normally pulls the permit under its own license.

Be careful if a contractor asks you to pull the permit yourself as an owner-builder. That shifts legal responsibility to you. It is also one of the warning signs the DBPR lists for unlicensed activity.

Before the final payment, confirm that every permit has passed final inspection and is closed. Open or expired permits often show up in a buyer's permit search. If you want to see how that plays out at sale time, our guide to renovating before you sell covers it.

How to hire a contractor to renovate your home after a hurricane

Storms bring out the best and worst of the trades. After a hurricane, demand for roofers, window installers and general contractors jumps. Meanwhile, out-of-state crews arrive to chase the work. Some are honest. Others take deposits and leave.

Warning signs of post-storm fraud

The DBPR lists these red flags for unlicensed activity:

• A price that seems much lower than other bids.
• A request for a large up-front payment in cash.
• No written contract.
• A refusal to pull permits, or a request that you pull them.
• A P.O. box instead of a physical address.
• Unmarked vehicles with out-of-state plates.

Remember that a license from another state does not let someone contract in Florida. In fact, under section 489.127, unlicensed contracting during a state of emergency declared by the Governor is a third-degree felony.

Insurance claim pitches

Be wary of anyone who offers to cover your deductible. Under section 489.147, contractors may not offer a deductible waiver, cash, gifts or anything of value for a roof inspection or claim. They also may not interpret your policy or adjust your claim unless they hold a public adjuster license. If a contractor wants to "handle the insurance," call your insurer first.

Step 6: How to close out the job when you hire a contractor to renovate your home

When the work wraps up, walk the house with the contractor and write a punch list. Then hold back the final payment until these steps are done:

1. All punch list items are finished.
2. Every permit has passed final inspection.
3. You have final lien releases from the contractor and anyone who sent a notice to owner.

After that, keep a renovation file. Include the contract, change orders, permits, inspection results, warranties and product manuals. This file helps with insurance, and it helps even more later when you sell.

How to hire a contractor to renovate your home with resale in mind

Buyers in Palm Beach County ask a lot of questions about roofs, windows, electrical panels and additions. Insurers ask the same questions. A seller who can hand over permits and receipts answers them in minutes. On the other hand, a seller with unpermitted work may face a lower offer, a repair request or a lender delay.

So the hiring choices you make today show up again at closing. If you are planning upgrades with a sale in mind, our list of upgrades that increase home value can help you choose projects. You can also check what homes like yours are listing for on our West Palm Beach, Boca Raton and Wellington pages.

Frequently asked questions

How do I check if a contractor is licensed in Palm Beach County?

Search the DBPR license database for state-licensed trades. Then search the Palm Beach County contractor lookup for county-certified trades, or call the Contractors Certification Division at 561-233-5525.

How much deposit should I pay a contractor in Florida?

Florida does not set a maximum. However, if the deposit is more than 10% of the price, the contractor must apply for permits within 30 days and start within 90 days after permits are issued, with limited exceptions.

What is a release of lien?

It is a signed document stating that a contractor, subcontractor or supplier has been paid for a stage of work. Collecting releases before each payment helps keep you from paying twice.

Can an out-of-state contractor renovate my home after a hurricane?

Only if they hold the right Florida license or local certification. An out-of-state license alone does not qualify them.

Should I pull the permit myself to save money?

Usually not. An owner-builder permit makes you legally responsible for the work. Also, a contractor who asks you to do this is showing a common warning sign.

This article is general information, not legal, tax or financial advice. For a specific contract or dispute, talk with a Florida attorney.

Sources

• Florida DBPR, license search
• Florida DBPR, unlicensed activity
• Palm Beach County PZB, contractor regulations
• Florida Statutes 489.126, moneys received by contractors
• Florida Statutes 489.127, prohibitions and penalties
• Florida Statutes 489.147, prohibited property insurance practices
• Florida Statutes 713.015, mandatory lien notice
• Florida Statutes 713.13, notice of commencement

Planning a renovation before you sell? Get a free Pure Equity home value report first, so you know which projects make sense for your price range. Buying a home that needs work instead? We can help you weigh the project before you make an offer. Talk with our team.