Florida Contractor Licenses 101
Florida’s Department of Business and Professional Regulation (DBPR) recognizes two different types of contractor licenses: Certified and Registered. Certified contractors are licensed at the state level by the DBPR, and can work throughout Florida. A registered contractor is licensed at the local level and may only contract within a specific local jurisdiction. When it comes to general contractors are required to obtain a Certified GC license with the state, however, the law does allow for municipalities to regulate trade workers such as electrical and plumbing contractors . Licensure by the state is desirable because it allows contractors to operate across all Florida municipalities without the need to address local regulatory issues. Operating through local jurisdictions can be a nuisance for the reason that each municipality has its own ordinances and rules regarding licensing, permitting and code compliance. By obtaining a state certified contractor license, you can further establish yourself as a reliable contractor in the local community. Obtaining a contractor license shows clients and potential clients that you are serious about your profession. It is an investment that will result in more opportunities for business and further communications from satisfied customers.
Florida’s Contractor License: What Are the Different Types?
Florida offers two broad categories of contractor licenses: Division I licenses and Division II licenses.
Division I licenses, commonly referred to as certified licenses, are issued by the Florida Department of Business and Professional Regulation (DBPR). In order to obtain a Division I license, contractors must pass one or more exams, meet certain experience and educational requirements and comply with state business organization requirements. For example, in order to qualify for an electrical contractor license, a candidate must either have four years of experience as a supervisory employee or foreman in an electrical contracting business. This is in addition to other requirements to be certified as a general contractor, building contractor, air-conditioning contractor, underground utility contractor, and others.
There are about 40 different types of Division I licenses available in the State of Florida. The wide variety of available licenses allows Florida NOC licensees and out-of-state contractors to apply for licensure as a contractor in Florida and bid for jobs they would not have had the opportunity to bid on without the same licensure.
Division II licenses, commonly referred to as registered licenses, are issued either by the State of Florida or by a local government. There are dozens of different types of registered licenses as well, but each of these license types are specific to a particular county or city. As of 2007, there were more than 250 local licensing jurisdictions in Florida, though that number has dwindled due to some of the smaller localities switching to the more common two-tiered licensing system. Many of the local contractor license types are limited in scope to residential construction.
Since Division I licenses are issued by the State of Florida, they allow for the contractor to perform work anywhere in the state. A local government Division II license, conversely, will only permit the holder to perform work in the particular local jurisdiction. Obtaining a state-issued license is often necessary to take on the largest jobs and perform work for the largest consumers. Licensed contractors include national companies like: Obtaining a local license does not permit the contractor to do the same level of work that he or she could do with a state license. However, it may be a good step for people who are just starting to build their businesses or work in the small-to-medium-sized segment of the construction industry. Often the licensing exam required for a local license is also less robust than it would be for someone pursuing the corresponding state license.
The types of licenses that are available, the requirements to obtain the license and the process of applying for licensure are continually being updated in order to ensure that the public health, safety and welfare is safeguarded in construction throughout Florida.
The Qualifications to Get a Florida Contractor’s License
To be eligible to obtain a contractor license in Florida an applicant must be at least eighteen (18) years of age. Further, the applicant must provide proof of his/her good moral character or be a member of the United States Armed Services. If the applicant is in the military or was honorably discharged from the military, he/she may be exempt from good moral character review.
The State of Florida requires the applicant to have a minimum net worth of $5,000. For Florida residents, the general and building contractor license requires the applicant to meet certain education and experience requirements. An applicant must be a graduate of an accredited high school, trade school, or receive an equivalent diploma. Further, an applicant must have, within the last five years, gained at least four years of proven and verifiable experience in the trade in which he/she wishes to become licensed. The experience can include one year of the required four years in a managerial capacity and one year as a foreman, supervisor, or foreman of record. If the applicant is enrolled in an accredited four year national standard college or university, which was approved by the Construction Industry Licensing Board, then that applicant can substitute one year of college for one year of the required four years of experience. All education courses which were not a part of an accredited four-year program can only be used as credit for two years of the required experience.
If the applicant completes an apprenticeship program, then the applicant is exempt from the educational and experience requirements of the general and building contractor license. However, the applicant must show proof of such training by a state approved contractor licensing board. The applicant must also prove that he/she completed the prescribed program and that it lasted for at least a term of four (4) consecutive years. The apprenticeship programs are described in Rule 61G4-15.001(1), Florida Administrative Code.
How to Become a Licensed Contractor in Florida
The process to obtain any contractor license in Florida is relatively straightforward. It begins with the contractor taking and passing the appropriate exam, submitting the correct and most current application, and receiving the certification. Generally, the underlying process is very important, but in light of the statewide program, the experience is also critical because if you make any errors or are not familiar with the process, some of these issues may be overlooked. In contrast, a municipality’s licensure regulations will oftentimes have only one or two individuals who work very closely on the licensure matters and if you lack familiarity or understanding of their methodology an applicant can get caught up in the middle.
The steps are as follows: Signup and testing. The cycle of signup and testing is rather specific and periodic. For each contractor trade category, there is a specific examination committee which oversees and administers the written portion of the tests. For the state program, there are also five parts that need to be passed: Sign up with an appropriate licensing agency and receive your fingerprint clearance card. Once you pass all these tests, you must then complete the licensure application form. Submit required documentation. The specific forms the applicants need to submit include the following: Submit proof of experience. Once the application is completed and submitted, it will be forwarded to the Board for review. During this period, you will be contacted by your state agency (DBPR) and asked to provide the experience requirements, which can oftentimes be very critical. Examples of what can be asked for include the following items: Pay required fees and register business with the Department of State. Schedule a Local Exam. For those who do not meet the specific qualifications, or for those who do not have the necessary experience to practice, the procedure does allow for local examinations, which are given by the municipality. After all these things are accomplished, your licensure would be granted.
Contractor’s License Exam and Fees in Florida
Most Florida contractors must pass an examination as part of their licensing procedure. This 4-6 hour test assesses your knowledge of the specific skills and business practices related to your line of work. The Florida Construction Industry Licensing Board maintains a list of all of the profession-specific residential and commercial licensing exams.
In addition, the Business and Finance portion of the test includes questions on general business practices, estimating and accounting, finance, codes and contracts, project management and safety. You will also be asked questions related to business organizational structure, employment regulations, special classes of labor, insurance and licensing. Electrical and plumbing contractors are subject to special regulations that require them to take a separate business test.
The examinations are administered by Pearson Vue, a third-party testing facility, in four locations throughout the state: Orlando, Tampa, Tallahassee and Miramar . The locations and the test schedules can be confirmed on the Pearson Vue website. If you wish to take the exams close to home, you must apply for licensure through your local building department.
Any exam fees must be paid directly to Pearson Vue. The administration of the test generally costs between $100 and $200. Testing Locations generally charge around $50 per test.
You can retake failed tests approximately every 30 days. If you fail the exam three times, you must apply for readmission. The readmission process can take up to six months.
Pearson Vue provides handbooks with sample exam questions for particular purposes. However, the best way to prepare may be to attend a Florida School of Construction examination preparation seminar.
The test can also be performed with a valid homeowner’s association certification. These tests also have separate fees. If you have been denied licensure in the past, you may be ineligible to take the test again, depending on the circumstances surrounding your previous application.
Florida Contractor License Renewal and Maintenance
Florida licensed contractors are required to maintain their licenses in good standing through compliance with state laws, rules and regulations. This not only requires a contractor who holds a state issued license to avoid committing any criminal offenses that may result in disciplinary action, but also to comply with certain requirements for continuing education and renewal of licensure.
Not every Florida contractor must complete continuing education to maintain his or her license. In total, 26 of Florida’s 35 license categories do. Local authorities, such as cities and counties, issue an additional 418 licenses within their jurisdiction and many of these local licensing codes contain continuing education requirements. Some localities also have additional regulatory requirements for license renewals, such as insurance certifications, background checks or examinations. Not all localities regulate all contractors. For example, Miami-Dade County regulates some contractors’ licenses, but not roofing or plumbing. In Duval County, municipalities may regulate human research license, management systems certificates and skin penetration facilities.
Every state licensee must participate in each one of the following:
The three-hour Florida Laws and Rules must be taken by all license types except for contractor exam applicants taking the exam for the first time, equivalent foreign trained applicants, specialty certifications, and licensees in inactive status. There are no exemptions from these courses. Course providers are required to register the completion of the courses with the DBPR. The completion of the required continuing education fulfills the license renewal requirements.
All licenses are renewed biennially pursuant to the current renewal schedule. Initial licenses, however, may require additional exemption periods.
Some licensing agencies allow state certified contractors to renew their licenses only upon proof of general liability insurance coverage. Also, some agencies may require the contractor to submit periodic statements of financial responsibility on a yearly basis.
In addition to satisfying the requirements of the initial licenses, applicants for a state license must show proof of economic stability and financial responsibility, such as providing evidence of net worth and of general liability insurance coverage. Class "C" contractors must show proof of a minimum net worth of $7,500. Class "B" contractors must show proof of a minimum net worth of $15,000. Class "A" contractors must show proof of a minimum net worth of $20,000.
Contracting Without a License in Florida and Its Consequences
Failure to meet licensure requirements can lead to both civil and criminal consequences. In the first instance, engaging in construction activities for which licensure is required without a valid license or the appropriate certification, is a second degree misdemeanor. Section 489.127, Florida Statutes, states
(1) Any person who violates any provision of part I of this chapter or the rules adopted by the board under part I of this chapter commits a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083.
And
(2) In addition to any other penalties or remedies, the board may apply to the circuit court in the county in which the offense occurs for an injunction to restrain a person from violating the provisions of this part by performing or offering to perform contracting work without being properly licensed, certified, or registered by the board.
Criminal sanctions are enforced by the State Attorney’s Office, however , the Department of Business and Professional Regulations investigates misrepresentation or unlicensed practice cases and will refer to the State Attorney for prosecution. In addition to paying restitution for lost license fees (i.e., fines), costs of investigation and prosecution and other costs related to disciplinary proceedings, the cost of restoration of a revoked license or registration and expenses incurred for review of reapplication for licensure, plus interest at the legal rate, unlicensed activity can subject a contractor to increased fines, attorneys’ fees and costs, revocation of license and/or further civil and/or criminal penalties.
Certainly if the unlicensed activity involves building something that is not in compliance with Florida’s Building Code, it exposes the unlicensed contractor to Florida Building Code Administration Act and Florida Building Code sanctions as well.
Because there is no license or registration, there is no insurance coverage for damages caused by the unlicensed contractor. It makes more sense to hire a contractor that is licensed and insured than to sue the contractor for damages; and then wait for years to recover.