How you pay for your roof replacement is almost as important as who you hire to do the work. The payment schedule determines how much financial risk you carry at each stage of the project, how much leverage you retain to ensure quality work, and how well you are protected if something goes wrong.
In Pinellas County, Florida, where the roofing industry is massive and unfortunately attracts its share of scam artists alongside legitimate contractors, understanding normal payment structures can be the difference between a smooth project and a financial disaster. This guide covers everything you need to know: what is standard, what is negotiable, what Florida law says, and what should send you running in the other direction.
What a Normal Roofing Payment Schedule Looks Like
There is no single "correct" payment schedule for roof replacement. Payment structures vary between contractors, but most legitimate Pinellas County roofing companies use one of two common approaches: a three-payment structure or a two-payment structure.
Three-Payment Structure (Most Common)
| Payment | Amount | When It's Due | What It Covers |
|---|---|---|---|
| Deposit | 10% - 20% | At contract signing | Secures your spot, material ordering, permit filing |
| Progress payment | 30% - 40% | After materials delivered and tear-off complete | Materials cost, labor for removal and deck prep |
| Final payment | 40% - 60% | After completion and your walkthrough approval | Remaining labor, cleanup, warranty activation |
Two-Payment Structure
| Payment | Amount | When It's Due | What It Covers |
|---|---|---|---|
| Deposit | 20% - 33% | At contract signing or material delivery | Materials, scheduling, permits |
| Final payment | 67% - 80% | Upon completion and final walkthrough | All remaining costs, cleanup, warranty |
Both structures are legitimate, and the right choice depends on the project size, contractor preference, and your comfort level. The critical principle is the same in both cases: the largest portion of money should not change hands until after the work is completed to your satisfaction.
Florida Law on Roofing Deposits
Florida does not have a specific statutory cap on roofing deposits for standard residential projects. However, Florida Statute 489.126 makes it a criminal offense for a contractor to accept payment and then fail to perform the work, abandon the project, or misapply the funds. This means that while a contractor can technically ask for any deposit amount, they are legally obligated to use those funds for your project.
In practice, the Pinellas County roofing market has established norms around deposit amounts, and deviation from these norms should raise questions:
| Deposit Amount | Assessment | Notes |
|---|---|---|
| 0% (no deposit) | Excellent for homeowner | Some established contractors work on zero deposit. Very low risk for you. |
| 10% - 15% | Standard and reasonable | Covers material ordering and scheduling commitment. Most common in Pinellas County. |
| 20% - 25% | Acceptable | On the higher end but still reasonable for specialty materials or tile roofs. |
| 30% - 40% | Proceed with caution | Ask why such a large deposit is needed. May indicate cash flow issues. |
| 50%+ | Major red flag | Extremely unusual for residential roofing. High risk of scam or contractor insolvency. |
| 100% | Walk away immediately | No legitimate contractor requires full payment before starting work. |
The Number One Rule of Roofing Payments
Never pay 100% upfront for a roof replacement. Period.
This is the single most common element in roofing scams across Pinellas County and all of Florida. Once you hand over the full amount, you lose all leverage to ensure the work is completed properly, or completed at all. Legitimate contractors understand that milestone-based payments protect both parties.
What Triggers Each Payment: Milestone-Based Scheduling
The most protective payment structure ties each payment to a specific, verifiable milestone. This means money does not change hands based on a calendar date or a contractor's request, but rather based on visible, confirmed progress. Here is what a milestone-based payment schedule looks like for a typical Pinellas County roof replacement:
Milestone Payment Timeline
Contract Signed (Deposit: 10-20%)
You and the contractor sign a detailed written contract. The deposit is paid. The contractor uses these funds to order materials, pull permits, and schedule the project on their calendar.
Materials Delivered and Verified (Optional progress payment: 20-30%)
Roofing materials are delivered to your property. You verify that the correct materials, quantities, and brands match your contract specifications. Some contractors trigger a progress payment at this stage.
Tear-Off and Dry-In Complete (Progress payment: 20-30%)
The old roof has been removed, the deck has been inspected and repaired as needed, and the dry-in with underlayment is complete. Your home is protected from weather.
Final Installation Complete (Final payment: 40-50%)
All roofing materials are installed, flashing is complete, ridge caps are in place, and cleanup is done. You conduct a final walkthrough and approve the work before releasing the final payment.
Punchlist Complete and Inspection Passed (Retainage release: 5-10%)
Any punchlist items from your walkthrough have been addressed, the building inspector has approved the work, and the contractor provides warranty documentation. Retainage is released.
Florida Statute 713: Your Lien Protection
Florida Statute 713, known as the Construction Lien Law, is one of the most important pieces of legislation protecting Pinellas County homeowners during construction projects, including roof replacements. Understanding this law can save you from paying twice for the same work.
The Problem Statute 713 Solves
Here is a scenario that happens more often than you might think: you pay your roofing contractor in full, but the contractor fails to pay their material supplier or subcontractors. Under Florida law, those unpaid parties have the right to place a lien on your property, even though you already paid the contractor. Without the protections in Statute 713, you could end up paying for your roof twice.
Key Protections Under Statute 713
Notice to Owner (NTO)
Any subcontractor or material supplier who is not in direct contract with you must serve a "Notice to Owner" within 45 days of first providing labor or materials to your project. This notice alerts you that these parties have a potential lien right. If you receive an NTO, do not panic. It is standard practice and simply means you should verify that these parties are being paid before releasing your final payment.
Contractor's Final Payment Affidavit
Before releasing your final payment, you have the right to request a Contractor's Final Payment Affidavit. This is a sworn, notarized document in which the contractor states that all subcontractors and material suppliers have been paid (or lists any who have not been paid and the amounts owed). Requesting this document before your final payment is one of the strongest protections available to Pinellas County homeowners.
Lien Release / Waiver of Lien
You can request a Waiver of Lien (also called a Lien Release) from anyone who served a Notice to Owner. This document confirms they have been paid and releases their lien rights against your property. For larger projects, collecting these waivers before each progress payment is a smart practice.
Holding Retainage for Punchlist Items
Retainage is a percentage of the total contract amount that you hold back from the final payment until every last detail is complete. In commercial construction, retainage is standard practice, typically 5% to 10% of the contract value. For residential roof replacements in Pinellas County, retainage is less commonly discussed but equally valuable as a homeowner protection tool.
What Retainage Covers
- Punchlist items: Minor issues identified during your final walkthrough, such as a loose ridge cap, improperly sealed flashing, or cosmetic concerns.
- Cleanup completion: Full removal of debris, nails (including magnetic sweep), and protective tarps from landscaping and driveways.
- Inspection approval: Confirmation that the Pinellas County building inspector has passed the final inspection.
- Warranty documentation: Receipt of manufacturer warranty registration and contractor workmanship warranty in writing.
- Lien waivers: Receipt of all required lien waivers from subcontractors and material suppliers.
How to Structure Retainage in Your Contract
Retainage should be addressed in your contract before work begins. Here is sample language you can discuss with your contractor:
"The homeowner shall retain [5% or 10%] of the total contract amount until all punchlist items identified during the final walkthrough are corrected, the final building inspection is passed, all warranty documentation is provided, and the Contractor's Final Payment Affidavit is received. Retainage shall be released within [10 or 15] business days of all conditions being met."
Most reputable contractors will accept a reasonable retainage clause because they intend to complete the work properly and know the retainage will be released promptly. A contractor who refuses to accept any retainage may be signaling that they have a history of incomplete work or unresolved punchlist items.
Escrow Options for Roofing Payments
For homeowners who want maximum protection, using an escrow service for roofing payments is an option worth considering. In an escrow arrangement, your payments are held by a neutral third party (the escrow agent) and released to the contractor only when agreed-upon milestones are verified.
How Escrow Works for Roofing Projects
- 1. You and the contractor agree on a payment schedule with specific milestones.
- 2. You deposit the total project amount (or each payment installment) into the escrow account.
- 3. The escrow agent verifies that each milestone has been met before releasing the corresponding payment.
- 4. Both parties can dispute a milestone if there is disagreement about whether it was properly completed.
- 5. The final payment is released after all work is complete and the final inspection passes.
| Escrow Feature | Benefit for Homeowner | Benefit for Contractor |
|---|---|---|
| Funds verified in account | Contractor sees you are financially committed | Guaranteed payment upon completion |
| Milestone verification | Money only released for completed work | Clear payment triggers, no chasing payments |
| Neutral third party | Dispute resolution mechanism | Professional payment management |
| Documentation trail | Complete record of all payments and approvals | Protection against claims of non-payment |
Escrow is most practical for larger projects ($20,000 and above) where the cost of the escrow service (typically 1% to 2% of the project value) is justified by the added protection. For standard residential roof replacements, a well-structured contract with milestone payments and retainage provides similar protection at lower cost.
Red Flags in Roofing Payment Requests
Knowing the warning signs of problematic payment practices can protect you from scams and financially unstable contractors. In Pinellas County, where roofing scams spike after every hurricane and tropical storm, these red flags are critical to recognize:
Definite Red Flags
- Demands 100% payment upfront: No legitimate contractor needs all money before starting.
- Cash only, no receipts: This screams tax evasion and leaves you with no paper trail.
- Requests payment before signing a contract: Never pay anything without a signed, detailed contract.
- Asks for deposit over 50%: Far above industry norms and a sign of cash flow problems.
- Pressures you to pay immediately: "This price is only good today" is a high-pressure sales tactic.
- Wants payment made to a person, not a company: Payments should always be made to the licensed business entity.
Caution Signs
- Deposit over 30%: Higher than typical. Ask why and compare to other quotes.
- No written contract or vague contract: Every detail should be documented before payment.
- Requests progress payment before materials arrive: Materials should be verifiable on-site.
- Resists including retainage clause: May indicate a history of incomplete punchlist work.
- Will not provide lien waivers: Suggests subcontractors may not be getting paid.
- Payment terms not in the contract: All payment milestones should be written in the agreement.
How to Protect Yourself: A Step-by-Step Payment Checklist
Use this checklist for every roofing payment you make during your Pinellas County roof replacement. Following these steps protects your money and ensures you maintain leverage throughout the project.
Before Paying the Deposit
- Verify the contractor's Florida roofing license is active on the DBPR website
- Confirm current general liability and workers' compensation insurance
- Receive and review a detailed written contract with complete scope of work
- Confirm the payment schedule is written in the contract with specific milestone triggers
- Verify the company name on the contract matches the licensed entity
- Research the company's reviews, BBB rating, and complaint history
- Ensure the contract includes a retainage clause
- Make the check payable to the company (never an individual)
Before Paying the Progress Payment
- Visually confirm that materials have been delivered and match contract specifications
- Verify that the milestone described in the contract has been genuinely reached
- Photograph the current state of the project for your records
- If you received any Notice to Owner documents, verify those parties are being paid
- Confirm the building permit has been pulled and is posted on site
Before Paying the Final Payment
- Complete a thorough final walkthrough of the entire roof
- Document any punchlist items in writing with the contractor
- Confirm the final building inspection has passed
- Request and receive the Contractor's Final Payment Affidavit
- Collect lien waivers from any parties who served a Notice to Owner
- Receive manufacturer warranty registration documentation
- Receive the contractor's workmanship warranty in writing
- Confirm all cleanup is complete, including a magnetic nail sweep
Before Releasing Retainage
- All punchlist items from the final walkthrough have been corrected
- You have conducted a follow-up inspection to verify punchlist completion
- All documentation (warranties, permits, lien waivers) is in your possession
- The final building inspection has been passed (not just scheduled)
What to Do If a Contractor Violates the Payment Agreement
Even with the best preparation, disputes can arise. If your Pinellas County roofing contractor violates the payment agreement, you have several options:
- 1. Document everything: Take photos, save emails and text messages, and create a written timeline of events. Documentation is your strongest tool in any dispute.
- 2. Communicate in writing: Send a formal written notice (email and certified mail) describing the violation and your expectations for resolution. Set a reasonable deadline.
- 3. File a complaint with DBPR: The Florida Department of Business and Professional Regulation handles contractor complaints. Filing a complaint can prompt investigation and disciplinary action against the contractor's license.
- 4. Contact the Pinellas County Consumer Protection office: Local consumer protection agencies can mediate disputes and may investigate pattern complaints against specific contractors.
- 5. Consult an attorney: For significant financial disputes, a Florida construction attorney can advise you on your rights, lien protections, and potential legal remedies. Many offer free initial consultations.
- 6. File a claim with the contractor's surety bond: If the contractor is bonded, you may be able to file a claim against their bond to recover losses.
Insurance Claim Roof Replacements: Special Payment Considerations
If your roof replacement is being funded by an insurance claim (common in Pinellas County after hurricane damage), the payment process works differently:
Insurance Claim Payment Flow
- 1. Insurance issues initial payment: After your claim is approved, the insurance company sends a check (usually made out to both you and your mortgage company).
- 2. Mortgage company involvement: Your mortgage company may need to endorse the check and may hold funds in escrow, releasing them as work progresses.
- 3. Supplemental claims: If the contractor discovers additional damage during tear-off (hidden deck rot, for example), they can file a supplemental claim with your insurance for the additional cost.
- 4. Depreciation recovery: Your insurance may initially pay the actual cash value (ACV) minus depreciation. After the work is complete, you can recover the depreciation amount.
- 5. Final payment after completion: The remaining insurance funds are released once you and the contractor confirm the work is complete.
Important: Florida law prohibits contractors from waiving or paying your insurance deductible. Any contractor who offers to "cover your deductible" is committing insurance fraud, and you could be held liable as a participant. Your deductible is your responsibility, and it should be factored into your payment planning.
Frequently Asked Questions
What is a normal payment schedule for roof replacement?
A typical roofing payment schedule in Pinellas County FL includes a deposit of 10 to 20 percent at contract signing, a progress payment of 30 to 40 percent after materials are delivered and tear-off is complete, and a final payment of 40 to 60 percent upon completion and your final walkthrough approval. Some contractors use a simpler two-payment structure with a deposit and final payment.
How much deposit should I pay for a roof replacement in Florida?
A reasonable deposit for a roof replacement in Florida is 10 to 20 percent of the total project cost. This covers the contractor's initial material ordering and scheduling costs. Any contractor asking for more than 30 percent upfront should be treated with caution. Never pay more than 50 percent before work begins, and never pay 100 percent upfront.
Should I ever pay 100 percent upfront for a roof replacement?
No, you should never pay 100 percent upfront for a roof replacement. This is one of the biggest red flags in the roofing industry. A contractor who demands full payment before starting work may be experiencing cash flow problems, planning to use your money on other projects, or running a scam. Always structure payments around completed milestones.
What is Florida Statute 713 and how does it protect homeowners?
Florida Statute 713 (the Construction Lien Law) protects homeowners from liens placed by subcontractors and material suppliers who were not paid by your general contractor. Under this law, subcontractors must serve a Notice to Owner within 45 days of starting work, and you can use a Contractor's Final Payment Affidavit to verify all parties have been paid before releasing your final payment.
What is retainage in a roofing contract?
Retainage is a percentage of the total payment (typically 5 to 10 percent) that you hold back until all punchlist items are completed to your satisfaction. This gives you leverage to ensure the contractor completes every detail of the project, including cleanup, touch-ups, and any items identified during your final walkthrough.
Can I use escrow for a roof replacement payment?
Yes, using an escrow service for roofing payments is an option that provides additional protection for both homeowners and contractors. Funds are held by a neutral third party and released when agreed-upon milestones are reached. While not common for standard residential projects, escrow can be valuable for larger or more expensive roof replacements in Pinellas County.
Final Thoughts: Your Payment Schedule Is Your Safety Net
The way you structure your roofing payments is not just a financial decision. It is a risk management strategy. Every dollar you hold until a milestone is verified is a dollar that motivates the contractor to do quality work and complete every detail. Every lien waiver you collect is a layer of protection against unexpected claims on your property. Every receipt you keep is evidence if something goes wrong.
In Pinellas County, where the roofing industry is competitive and occasionally attracting less-than-honest operators, following these payment best practices separates informed homeowners from vulnerable ones. Take the time to structure your payment schedule properly, include retainage and milestone triggers in your contract, and do not let any contractor pressure you into a payment arrangement that makes you uncomfortable.
A reputable contractor will respect your desire to protect your investment. In fact, they will appreciate working with a homeowner who understands the process and has clear, fair expectations. The result will be a smooth project, a beautiful new roof, and the financial peace of mind that comes from knowing every dollar was well spent and properly accounted for.