Question 1

What do CGC, CBC, and CRC licenses mean?

Accepted Answer

In Florida these are state-certified contractor classes. CGC (Certified General Contractor) can build virtually any structure. CBC (Certified Building Contractor) covers commercial buildings up to three stories and residential. CRC (Certified Residential Contractor) covers one- and two-family homes and townhouses. Always confirm a contractor's license class fits your project and verify it is active.

Question 2

Should a general contractor be licensed, insured, and bonded?

Accepted Answer

Yes. Verify an active state license (license class appropriate to the work), general liability insurance, and workers' compensation coverage. Many jurisdictions also require the contractor to be bonded. Ask for certificates directly and confirm them with the insurer or licensing board, not just a screenshot.

Question 3

How much of a deposit is normal?

Accepted Answer

A typical deposit is around 10% of the contract (some states cap it). Never pay the full amount up front. Use a milestone-based payment schedule tied to completed phases, and hold a final payment until the work passes inspection and any punch-list items are done.

Question 4

What should be in the contract?

Accepted Answer

A clear scope of work, a fixed or clearly-defined price, a payment schedule tied to milestones, start and completion dates, who pulls permits, warranty terms, and a written change-order process. Get everything in writing — verbal promises are hard to enforce.

Question 5

What is a change order and why does it matter?

Accepted Answer

A change order is a written amendment for any work that differs from the original contract — added scope, material swaps, or unforeseen conditions. Insist that every change be priced and signed before the work proceeds, so the budget never moves without your approval.

Question 6

How do I protect myself from liens?

Accepted Answer

Subcontractors and suppliers can file a lien against your property if the GC doesn't pay them, even if you paid the GC. Ask for lien waivers from the contractor and major subs as you make each payment, and consider tying final payment to receiving all waivers. For specifics, consult a construction attorney.

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