Why Written Contracts Matter: Protecting Your Construction Project in Florida

When it comes to construction law in Jacksonville, Tampa or St. Pete, one truth stands out: the details in your contract can make or break your project.

At Bachara Construction Law Group, we’ve helped contractors, subcontractors, and owners navigate disputes that could have been avoided with a better contract. Whether it involves industrial, infrastructure, hospitality, healthcare, commercial, government or residential construction, a well-drafted written agreement isn’t just helpful, it’s critical.

Let’s break down why.

Florida Doesn’t Always Require a Written Contract—But You Should Have One Anyway

You might be surprised to learn that in Florida, not all construction contracts are required to be in writing. Oral agreements can be legally binding. But they also invite risk, especially when expectations diverge and memory fades.

Without a written agreement, disputes often come down to a “he said, she said” scenario. That means:

• No clearly defined scope of work

• No agreed-upon terms for delays, payment, or pricing

• No protection if a dispute escalates to trial

And in most cases, a disagreement without a written contract pushes the case straight to jury trial—an expensive, time-consuming outcome that can put your entire project (or business) at risk.

A clearly written contract helps define responsibilities, establish timelines, and manage expectations—before problems arise.

Understanding Types of Construction Contracts in Florida

If you’re navigating construction law in Jacksonville, St. Pete or Tampa, it’s essential to understand the contract structure. These are the most common:

1. Cost-Plus Contracts

In this format, the owner agrees to pay the contractor for actual project costs plus a markup for overhead and profit. It offers transparency—but it also demands a high level of trust and documentation.

Risk: Owners can be exposed to inflated costs if contractors don’t manage expenses well.

2. Lump Sum Contracts

Also known as fixed-price contracts, these define a single price for the entire scope of work. The contractor assumes more risk and must account for every possible cost upfront.

Risk: Cost overruns due to unforeseen issues become the contractor’s burden.

3. Cost-Plus with Guaranteed Maximum Price (GMP)

A hybrid approach. The contractor is reimbursed for costs plus a fee, but only up to a capped maximum price.

Risk: Contractors need a strong understanding of scope and contingencies or risk eroding profits.

Each contract type allocates risk differently—knowing which to choose (and how to negotiate terms) is where legal counsel becomes invaluable.

Risk-Shifting: Protecting Yourself Before the First Shovel Hits the Ground

Risk is an unavoidable part of any construction project. But who bears that risk is up to you—and your contract.

Construction contracts can and should define how you handle:

• Delays caused by weather, supply chain issues, or labor shortages

• Errors by subcontractors

• Acts of God (force majeure) like hurricanes or pandemics

• Scope gaps between architectural plans and on-site execution

Risk-shifting clauses ensure you’re not left holding the bag for problems outside your control. In Florida—where hurricane season is a regular concern—having a force majeure clause can be the difference between surviving a storm and absorbing thousands in unplanned costs.

Insurance: Your First Line of Defense

Understanding construction insurance is essential to staying compliant and protected. The right insurance policy doesn’t just cover damage—it helps shift risk from your business to your carrier.

Here’s what every Florida contractor or subcontractor should be familiar with:

Commercial General Liability (CGL)

Covers third-party injuries or property damage due to your work—but often excludes damage to your own workmanship.

Builder’s Risk Insurance

Protects materials and structures during construction. Crucial for owners and developers.

Professional Liability (Errors & Omissions)

Especially important for trades that submit shop drawings or design-build elements. Standard CGL policies don’t cover design errors.

Pro Tip: Work with an insurance broker who understands Florida construction law. Coverage gaps can be devastating.

Your Takeaway: Contracts Should Do the Heavy Lifting—Not You

From choosing the right contract type to negotiating risk clauses and understanding your insurance coverage, every detail matters.

At Bachara Construction Law Group, we’ve helped clients across Jacksonville, Tampa, St. Pete, and the entire state of Florida avoid costly litigation, secure better project outcomes, and protect their businesses. Whether you’re building in Jacksonville, St. Pete or in Tampa, we can help you put the right protections in place.

Need Help With a Construction Contract?

We specialize in Construction Law in Jacksonville and Construction Law in Tampa/St. Pete, offering practical legal support for:

• Contractors

• Subcontractors

• Developers

• Project owners

📞 Contact us today to schedule a contract review or legal consultation.