Florida pool contracts: deposits, permits and the Recovery Fund
The 10 percent deposit rule, the 30 and 90 day clocks, what to put in the contract and what the Construction Industries Recovery Fund covers.
Most pool disputes in Florida are not about tile colour. They are about money paid up front and work that stalls. State law sets some clear guardrails around deposits and permits, and knowing them puts you in a much better position when you read a proposal.
The ten percent rule
Section 489.126 of the Florida Statutes applies to contracts to improve residential real property. If a contractor takes an initial payment of more than 10 percent of the contract price, two clocks start running unless the work does not need a permit or the owner agrees in writing to longer periods:
- The contractor must apply for the necessary permits within 30 days of receiving the payment.
- Work must begin within 90 days after the permits are issued.
The statute also targets contractors who collect more than the value of the work performed and then fail to do any work for 90 days without just cause. Where a contractor misses these deadlines, the owner can send a written demand by certified mail. The contractor then has 30 days to apply for the permit, start work or refund the money; failing that can be a criminal offence, graded by the amount involved from a first-degree misdemeanor up to a first-degree felony for larger sums. The statute lists exceptions, including just cause, so read the exact wording or ask a lawyer before you rely on it.
In practice the takeaway is simple: a modest deposit and payments tied to completed stages (excavation, steel, plumbing, gunite or shell, tile, deck, plaster, start-up) leave you with leverage. A large deposit for materials that have not been ordered does not.
What to put in the contract
- The contractor's business name and the DBPR licence number, matching the state record.
- A written scope: dimensions and depth, shell type, finish, tile, decking, equipment brands and models, heater, cleaning system, automation, electrical work, fencing or barrier.
- Who applies for and pays for permits, and inspection responsibilities.
- A payment schedule tied to stages, and how change orders are priced.
- What is excluded: landscape restoration, tree removal, rock or dewatering, utility relocation, screened enclosures, and any homeowners' association fees.
- Start and finish targets, and what happens when weather or inspections cause delay.
- Warranty terms in writing, with the length of each covered item.
Permits and the licensed contractor
Pools need a building permit from your city or county, and final inspections must pass before the pool is used. Have the permit issued in the licensed contractor's name. If an owner pulls the permit instead, the owner is acting as the builder, and does not get the protections that come with hiring a licensed contractor.
Liens
Florida's construction lien law allows subcontractors and suppliers who are not paid to record a lien against the property even when you paid your contractor in full. The statute sets out a Notice to Owner process and a final payment affidavit; ask for the contractor's release of lien and the suppliers' releases at each payment, and read Chapter 713 or ask an attorney if the job is large.
The Construction Industries Recovery Fund
If a licensed contractor takes your money and does not perform, the Florida Construction Industries Recovery Fund can reimburse some losses, but only under strict conditions (section 489.141). You generally need a final judgment, an arbitration award or a Construction Industry Licensing Board restitution order based on specified violations, proof that you could not collect from the contractor by writ of execution, and you must have exhausted any bond or insurance. A claim must be filed within one year after the conclusion of the court, criminal or administrative action or arbitration. Spouses of the licensee and other licensees involved in the same transaction cannot claim. The fund exists only for licensed contractors; unlicensed work is outside it. Details and forms are on the DBPR construction pages.
Complaints
You can file a complaint against a licensed contractor with DBPR at myfloridalicense.com/file-a-complaint. A complaint is not a substitute for the deadlines above: keep every contract, receipt, text and email.