Florida Contractor Licenses Explained
Licenses to be a contractor in Florida are administered and provided by the State of Florida Department of Professional Regulation, hereinafter the "DBPR." In order to be a licensed contractor in Florida, an individual or business must obtain a license from the DBPR. There are two types of licenses available: (1) Certified, or (2) Registered. For either type of license, the Florida state board that oversees contractors has the ultimate authority to approve applications. Likewise, a denial of such application may only be overturned by the board responsible for overseeing contractors .
The purpose of licensing builders is to protect homeowners by ensuring that there are minimum requirements for qualification, because state certified and registered contractors have the right to apply for a building permit, and can bind the property to a lien. By requiring a license, the State is requiring that the licensed contractor pass a test to ascertain his/her knowledge of applicable laws, provide financial documentation so that the State can ascertain that the financial status of the contractor will ensure that the contractor is able to financially complete a project, requires the licensed contractor to pass a state and national exam, and requires minimum insurance coverage. The types of licenses that are available will be fully discussed at the end of this article.
The General Contractor License
A general contractor license in Florida gives you a license to work on commercial and residential construction projects for structures that are more than 3 stories tall. If you want to be licensed as a contractor in Florida you have to meet minimum requirements set by the state, depending on the license type you seek. Generally speaking, a general contractor license in Florida is the highest level of licensure and it permits multifamily and large or complex commercial projects.
Florida does not have local licensing regulations, but it does have licensing requirements overseen by the Department of Business and Professional Regulation. Anyone practicing the license classification of "building contractor" must hold a state issued license from the Department.
To qualify to sit for the exam, individuals must have 4 years of hands on experience, a high school diploma or equivalent and pass a written examination. In addition to the exam, one has to be able to demonstrate 1 year of supervisory experience. In lieu of the 1 year of supervisory experience working under a licensed general contractor, one can substitute 3 years teaching a course with a curriculum related to construction management at a post secondary vocational school.
Once a state license is issued the individual can work in the following areas: General contractors can do just about any type of construction or remodeling project. The business of building homes is a highly regulated industry and the licensing requirements were designed to make sure the people working in the industry would know what they were doing and be able to keep our homes and businesses safe.
The Building Contractor License
In Florida, a building contractor is a person whose business in whole or part consists of the construction of, or general contracting on, any building, or heavy or civil engineering for buildings, foundations, structures, and all other types of construction (other than — because of the size and complexity of the project — roofing, sheet metal, HVAC, plumbing, electrical, alarm-system, elevator, or certain other specified contractors). A building contractor cannot contract for or perform work (1) other than that of a building contractor, unless permitted by law or (2), for compensation, on any structure or fixture for which the total cost of the structure or fixture, including labor, materials, overhead, and profit, is more than $75,000 without obtaining a local license for that work. When entering into the contract described above, a building contractor may not represent to a customer, or to the public, or use any title or use letterhead or a sign, card, or other device indicating that he or she is licensed as a building contractor, unless licensed and registered as such. In addition to licensing as a building contractor, if the building contractor employs a contractor in an activity requiring licensing as a general or intermediate contractor, the building contractor must be licensed and registered as a general contractor or intermediate contractor, as the case may be.
The Residential Contractor License
A Residential Contractor License specifically authorizes a construction contractor to engage in the construction of residential structures permitted by law and needed appurtenances. Often times, this license is needed for contractors who do not need access to public utilities. A residential contractor’s work on a residential property must be limited to no more than two habitable stories or 3 habitable stories if the additional story or partial story is a garage or porch.
Florida Statutes 489.105(3) provides that a person must hold this license to build any of the following types of properties: This license also permits the contracting for work which is incidental to building residential properties. However, certain jobs remain outside the scope of a residential contractor license. This includes the construction of detached miscellaneous structures such as fences and unoccupied detached storage buildings, the construction of multifamily residences and the construction of facilities which are primarily commercial in character.
The Specialty Contractor License
The specialty contractor license covers an area of construction work that requires specialized training. This can involve systems or components, such as electrical or plumbing, which generally requires a permit and licensure to use or install. It can also involve work that primarily consists of custom fabricating products from raw material, or performing maintenance or repairs. Think of general and specialty contractor licenses as the difference between a general physician and a specialist. The latter is the expert in his or her field, ready to tackle the jobs that general physicians can’t or don’t handle. The same goes for contractors.
While some specialty contractors can legally work without a specialty license , it is not a good idea to do so. County and municipal regulations may also require a specialty contractor license for permit issuance, and an unlicensed specialty contractor runs the risk of losing any civil and/or criminal actions brought against him or her. Also, while a licensed contractor can legally hire and/or subcontract an unlicensed contractor, an unlicensed contractor cannot do so legally.
The DBPR breaks down specialty contractor licenses into categories based on specialty. One example is the Alarm System contractor license, which is used for work involving security and fire systems. When seeking a license of this type, be sure to pay attention to the application type. The DBPR allows provisional, certified, and registered licenses. As with general contractors, this type of license also enforces continuing education requirements.
Florida Contractor License Application Process
Regardless of whether you are a general, building, residential, or specialty contractor, the process to apply for any of the aforementioned contractor licenses is basically the same. In fact, there are two stages to the application process. First, you must apply, and second, you must take and pass the required exam. The end result of this two-step process is that applicants holding a current DBPR-issued certificate of competency in the occupation you are applying for will then be eligible to sit for the necessary exam.
With this in mind, if you were to review the list of requirements for contractors from the Florida Department of Business & Professional Regulation (DBPR), you would see that each sub-type of licenses requires the following:
- An application: the first step before an applicant can obtain a contractor license is to submit an application and have it reviewed by the relevant authority in order for them to determine if you are eligible to test. Anyone who meets the minimum qualifications set forth by the Department of Business & Professional Regulation (DBPR) will generally be approved for licensure. Once the application is completed, notarized, and submitted with any accompanying documentation, your application will be reviewed within 30 to 45 days after receipt by the Board office.
- Exams: for applicants who qualify, the next step in the licensing process is to take and pass any required examinations (these are generally administered by the Florida Department of Business & Professional Regulation, the Florida Construction Industry Licensing Board (to include the Florida Certified General Contractor exam and the Florida Residential Construction exam, to name a few). In fact, the majority of contractor programs require exams to be taken in most cases within six months of approval for licensure. For example, the Examining Board of Plumbers in Miami-Dade County will not approve a new applicant to sit for their examinations until the applicant has shown that he/she has taken the Florida DBPR exam within six months of approval.
- Fees: taken together, the fees for applicants applying for licensure in Florida are not necessarily inexpensive. See the below lists of fees: however, most applications group licensing fees into two payments. For example, in Miami-Dade, a new applicant seeking licensure would be required to pay an application fee of $200 and a licensing fee of $300. In total, the licensing fees coming in at $500.
- Fingerprints: getting fingerprinted is a must have for all prospective contractors wishing to obtain a license. Fingerprinting applications must be completed prior to submitting the application for licensure. In addition, your fingerprint results will be reviewed for review for clarity and adequacy purposes.
In sum, the entire licensing process can take anywhere from 7 to 12 weeks, but will ultimately depend on the complexity of the application and any past disciplinary actions.
Renewals and Continuing Education
In Florida, contractor licenses are valid for two years and must be renewed prior to their expiration if the licensee wishes to continue performing construction contracting. The process for renewal varies somewhat by license type, but in general, the licensee must file the proper renewal forms and meet all continuing education requirements with the applicable regulating or licensing agency. Both registered and certified contractors are required to show proof of insurance and financial responsibility as well. Licensees will also need to re-finger print with the Florida Department of Law Enforcement.
The renewal process may also include additional requirements depending on the state license type the applicant currently holds. All state certified contractors must provide verification of continuing education requirements prior to license renewal. The state qualifying agent (if different from the licensee) may also have to meet continuing education requirements. However, some local licensing jurisdictions require more continuing education hours than the state standards.
In some cases, a licensee may have outstanding financial obligations that will affect the ability to renew a license. Any license suspensions previously imposed may also effect the license renewal process. In some circumstances contractors may qualify for a "grandfather" exemption from continuing education requirements. This type of exemption usually only applies when it is due to circumstances beyond the licensee’s control (such as a medical emergency). The licensee will need to contact the appropriate agency to determine whether or not the circumstances merit an exemption.
Pitfalls and Helpful Hints
Many Florida contractor license applicants may find it difficult to navigate the process of applying for a license. Here are some common problems people face during the process and some tips to handle them:
Licensing Boards
When it comes to licensing boards, residential contractors need to be on the ball. These boards typically meet once a month and applicants need to pass their evaluation interview on the first try. In addition to arriving on time, you need to be appropriately dressed and ready for them to ask questions about your experience and capabilities.
My recommendation is to prepare for the board interview as if it were a job interview. You should consider familiarizing yourself with general technical term questions and practice your answers ahead of time so that you feel no need to elaborate. The boards frequently ask applicants technical questions; for example, it is not uncommon to ask applicants about safety regulations on construction sites and how to handle problems such as work injuries. You should also be prepared to talk about your work history and your financial situation. Again, do not elaborate on your answers, giving simple "yes" or "no" answers is recommended.
Inaccurate Information
Other issues arise from using incorrect information, whether it be throughout your application or in preparation of the board interview. This can lead to serious questions from the board or other issues that can lead to a denial of your application. It is important to evaluate your application closely to ensure that all information is correct, well-organized, and presented thoroughly . By doing this, you will avoid wasting time trying to get things sorted out down the road. Always be honest in your responses and give accurate information: this should go without saying, but sometimes applicants think that having a bad record will deter them from getting a license, when in fact it does not, so they augment their history to make it seem cleaner than it actually is. This could end up doing more harm, because it is easy to discover when you have frequently encountered an issue on jobs. For example, many owners like to fire contractors who take too long and estimate incorrectly with regard to cost. If you have difficulty finishing jobs in a timely manner, hiring a consultant who has worked with the board before can be incredibly helpful. Unsurprisingly, each type of application procedure requires a specific type of consultant, so be sure to select one who has the expertise, experience, and knowledge of the state to help you present the best application possible.
Unresolved Issues
A license application can be delayed or denied if there are outstanding legal or financial issues. For example, you may have a criminal record that you need to address or have had professional licenses revoked in the past. Another common issue is unpaid fines or they may have mortgage foreclosures in their name. These issues require various levels of remediation. Failing to take care of these issues in a timely manner can cause you to miss deadlines, and then your application will either be delayed or voided based on the length of time that has passed. Note that you will need to pay the fine regardless, and you should attempt to pay everything as soon as you can.