A Hard Lesson Learned: Why Due Diligence Is Everything When Hiring Contractors in Florida

I’ve been in the development game long enough to know that every project hinges on the team you choose. General contractors, subcontractors, consultants—they’re the backbone of your build. Get it right, and your project runs like a well-oiled machine. Get it wrong, and you’re stuck in a mess that costs time, money, and trust. I learned this the hard way on a couple of projects where I trusted the wrong general contractor, and it set my investors and me back big time. I’m sharing my story—not to dwell on the past, but to help you avoid the same mistakes. At HBJ Development, we’ve turned those lessons into a tool called the Construction Report to help developers, HOA board members, and investors like you make smarter, safer choices. Here’s why due diligence is non-negotiable when hiring contractors in Florida, and how you can protect your project from going south.

My Mistake: Trusting Without Verifying

A while back, I brought on a general contractor for a couple of projects. On paper, he looked solid—decent references, a competitive bid, and a confident pitch. I thought I’d done my homework, but I missed the deeper checks that could’ve saved me a world of trouble. Turns out, this contractor was operating in bad faith. He took deposits, dragged his feet, and failed to pay subcontractors, leaving a trail of broken promises. Progress stalled, costs piled up, and my investors were left frustrated. It was a gut punch, and I take full responsibility for not digging deeper.

That experience was a wake-up call. I realized that choosing a contractor isn’t just about who’s cheapest or who talks a good game. It’s about verifying their track record, their standing with the state, and their ability to deliver. I vowed to never let that happen again, and I’ve spent years refining how we vet contractors at HBJ Development. My goal now is to share what I’ve learned so you don’t have to learn it the hard way.

Why Due Diligence Is Your Best Defense

In Florida, construction is a tightly regulated industry, and for good reason. The Department of Business and Professional Regulation (DBPR) sets high standards to protect property owners, but it’s on you to make sure your contractor meets them. Skipping due diligence is like building a house without a foundation—sooner or later, it’s going to crumble. Here’s what can go wrong if you don’t do your homework:

• Unlicensed Contractors: Hiring someone without a valid DBPR license is a recipe for disaster. They might do shoddy work, disappear mid-project, or leave you with unenforceable contracts. The DBPR cracks down on unlicensed activity, but you’re the one who pays the price if you don’t check.
  
  

• Bad Faith Behavior: Contractors who misrepresent progress, abandon jobs, or stiff subcontractors can tank your project. That’s exactly what happened to me, and it’s more common than you’d think.
  
  

• Permit Problems: A contractor who doesn’t close out permits on time can delay your occupancy or expose you to fines. Checking their permit history shows whether they’re reliable or just stringing you along.
  
  

• Financial Trouble: If your contractor isn’t bonded or insured, you’re on the hook for damages, unpaid vendors, or unfinished work. A simple financial check can save you from this nightmare.
  
  

My setback taught me that due diligence isn’t just a box to check—it’s your shield against these risks. Let’s walk through how to do it right.

How to Vet Contractors Like a Pro in Florida

Here’s the playbook I wish I’d followed back then. These steps will help you hire the right general contractor, subcontractors, and consultants while steering clear of the pitfalls I hit:

1. Check their License with the DBPR Head to www.myfloridalicense.com and plug in the contractor’s name or license number. Make sure their license is active and matches the work they’re doing—Certified General Contractor (CGC) for most builds, or specialty licenses for trades like plumbing or electrical. Look for complaints or disciplinary actions. A contractor with a rap sheet of violations is a hard pass. Also, confirm their business is registered with the Florida Department of State. If they’re operating under a shady name, your contract might not hold up.
   
   

2. Dig Into Their Permit History Go to your local building department’s website or the DBPR to pull the contractor’s permit records. Check if their name’s on the permit as the qualifying agent—that’s a sign they’re legit. Then, look at how long it took them to close out permits. A contractor who wraps up permits in six months is likely more efficient than one who leaves them open for years. In my case, I didn’t check this, and it would’ve shown me the contractor’s history of dragging projects out.
   
   

3. Look for Complaints The DBPR’s complaint database is your friend. Search for any formal complaints or fines against the contractor. If they’ve got a pattern of fraud, negligence, or bad faith, you’ll see it here. You can also check the Florida Attorney General’s site (www.myfloridalegal.com) for consumer complaints. One or two issues might be a fluke, but a long list is a dealbreaker.
   
   

4. Demand Performance and Payment Bonds If I could go back, I’d have required a performance bond from that contractor. These bonds guarantee the job gets done per the contract, and payment bonds ensure subcontractors get paid, protecting you from liens. Always verify the bond with the surety company—don’t just take the contractor’s word. For big projects, bonds are a must. They could’ve saved me and my investors a lot of grief.
   
   

5. Don’t Skip Financial and Reference Checks Ask for proof of insurance—general liability and workers’ comp—and a credit report if possible. A contractor who’s broke or dodging bills is a liability. Call their references, but don’t stop there. Track down past clients or check court records for liens or lawsuits. If I’d done this, I might’ve caught red flags about unpaid subs before signing.
   
   

6. Say No to the Lowest Bid I get it—low bids are tempting. But they’re often a trap. Cheap contractors might cut corners, use unlicensed subs, or lack insurance, turning your “deal” into a disaster. My contractor’s bid wasn’t the lowest, but it was low enough to cloud my judgment. Compare bids based on experience, transparency, and track record, not just price.
   
   

Real-World Risks: What Happens When You Skip Due Diligence

Let me paint a picture of what can go wrong, based on my experience and others I’ve seen:

• The Unlicensed Sub Disaster: A developer I know hired a general contractor who outsourced electrical work to an unlicensed subcontractor. The wiring failed inspection, and the whole project was delayed for months. A quick DBPR check would’ve shown the sub wasn’t licensed, saving everyone a headache.
  
  

• The Never-Ending Permit: An HOA board picked a contractor with a history of leaving permits open. When the contractor bailed, the community couldn’t get a certificate of occupancy, leaving residents in limbo. Checking permit history would’ve exposed the contractor’s sloppy track record.
  
  

• My Bad Faith Wake-Up Call: My contractor took our deposit, made big promises, and then ghosted us while leaving subcontractors unpaid. It cost us time, money, and trust. A DBPR complaint search or a bond requirement could’ve stopped it before it started.
  
  

These aren’t just hypotheticals—they’re the kind of setbacks that can sink a project if you don’t vet carefully.

How HBJ Development’s Construction Report Saves the Day

After my experience, I knew I had to do better—not just for my projects, but for everyone in the industry. That’s why we created the HBJ Development Construction Report. It’s a tool that does the heavy lifting of due diligence for you, pulling together everything you need to make an objective decision about a contractor. Here’s what it covers:

• License Check: Confirms active DBPR licenses and flags any disciplinary actions.
  
  

• Permit Breakdown: Shows open and closed permits to gauge how efficiently the contractor works.
  
  

• Complaint History: Highlights any DBPR or consumer complaints for bad faith or negligence.
  
  

• Financial Snapshot: Looks at bonding, insurance, and credit to spot financial risks.
  
  

• Past Projects: Evaluates their track record on similar jobs to ensure they can deliver.
  
  

The Construction Report is built for developers, HOA boards, and investors who want to avoid the kind of mess I went through. It’s like having a private investigator for your contractor, giving you the facts to build with confidence.

Extra Layers of Protection

Beyond vetting, here are a few more ways to safeguard your project:

• Ironclad Contracts: Spell out the scope, timeline, and penalties for delays. Make sure it complies with Florida law, like the three-day right to cancel. A tight contract could’ve held my contractor accountable.
  
  

• Verify Insurance: Double-check that the contractor has general liability and workers’ comp. If they don’t, you could be liable for accidents on-site.
  
  

• Use Bonds: I can’t stress this enough—performance and payment bonds are your safety net. They protect you if the contractor flakes or leaves subs unpaid.
  
  

Build Smarter, Not Harder

My experience with that bad-faith contractor was a low point, but it made me a better developer. It taught me that due diligence isn’t optional—it’s the difference between a successful project and a costly failure. Don’t just go with the lowest bid or take references at face value. Check the DBPR, dig into permits, demand bonds, and make sure your contractor’s name is on those permits as the responsible party. That’s how you know they’re legit and efficient.

At HBJ Development, we’re here to help you get it right. Our Construction Report takes the guesswork out of hiring, so you can focus on building something great. If you’re a developer, HOA board member, or investor ready to make smarter choices, reach out to us at [insert contact info]. Let’s talk about how we can protect your next project from the mistakes I made.

Here’s to building better, together.

By Harry B. Joseph, Founder of HBJ Development