How to Get a Florida License for Contractors
Contractor licenses are very important to operate a legal business in Florida. Despite the fact that they can be obtained from various local agencies inside of the state, Florida law has provided a legal structure whereby licensed contractors can obtain protection from competition from unlicensed contractors. In the event that you obtain a license, and then defraud your customer, you can have that license revoked or suspended by the Florida Department of Business and Professional Regulation. You also can be fined, and you may be sued in court if you fail to perform your work. Typically no one wishes to employ an unlicensed contractor.
For instance, if a homeowner hires a Florida general contractor, and that general contractor does poor work , they probably will have legal recourse against the general contractor for failing to honor their agreement. This would be considered a breach of contract. Also, if the general contractor was not licensed, the homeowner could obtain a court order stating that the unlicensed general contractor could not finish the project since they were not legally able to perform business in the local community without the proper license.
In Florida, there are categories of contractors licenses that are offered. Electrical and plumbing contractor licenses are generally limited to local jurisdictions. However, the Florida Department of Business and Professional Regulation issues several licenses for other fields of practice. Electricians and plumbers are required by law to register their license, and anyone who offers to do plumbing or electrical work must be licensed as a licensed contractor.
General Contractor License in Florida
To become a general contractor in Florida and bid on and pull permits for those jobs, you have to get a general contractor license. A Florida general contractor license authorizes you to do any work that requires the services of at least two of the five building trades required by Chapter 489.105(2), Florida Statutes. Those building trades are:
General contractors are also called "building contractors," but the terms are used interchangeably.
Florida laws say a general contractor’s services must include the following:
In addition to this definition, Florida regulations prohibit a general contractor from doing "demolition work in excess of $25,000.00," unless licensed as a demolition contractor or class A general contractor. Demolition is the "removal of a building down to its foundation, including the attachment of roof trusses, but does not include the removal of structures such as fences, signs or billboards without a foundation." Fla. Admin. Code r. 61G4-15.001(41)(b).
There are not one, but two different general contractor licenses in Florida. If you want to become a general contractor in Florida, you must get a license from the Florida Building Commission and the local governing authority where you plan to do business.
The Florida Building Commission issues the Certified General Contractor license. Certified General Contractors are licensed to do jobs throughout the state of Florida. General contractors licensed by the local government can only do those jobs in that local government’s jurisdiction.
Florida’s Department of Business and Professional Regulation regulates general contractors. To become a general contractor, you must pass three tests: a 1) Business and Finance Exam; 2) Contract Administration Exam; and 3) Project Management Exam. The company you work for (unless you are self-employed) must also be registered and licensed as a contractor in Florida.
Florida also requires you to get the right level of workers’ compensation, property damage, general liability, and public liability insurance as a condition of being in a position of responsibility with a licensed company.
Building Contractors License in Florida
The building contractor is licensed to build any structure up to 2-story in height. These contractors are most often identified in the community as "general" contractors.
The building contractor may also be identified as a "contractor" on the job site. There is no harm in using this title and it is allowable pursuant to Florida Statute 489.115(1)(a). However, if licensed in only one discipline, the contractor must clearly disclose his or her license type as "general," "building," or "residential".
The building contractor may build single-family residences and multi-family residences such as an apartment building of three or more stories. Building contractors may also do any service work that does not require a separate license in the Florida Building Code Section 105.2. A building contractor may install fixtures in structures for which he has contracted to build and may perform any service work requiring no more than 90 man hours or $10,000.00 of labor and material. A licensed building contractor who wants to get into the air-conditioning, plumbing, or electrical trade must obtain a special license in that trade or work under a licensed contractor.
Most businesses working as a building contractor will have individuals who are appropriately licensed for any specialized trade work that requires licensing under the Florida Building Code.
Residential Contractors License in Florida
The first subcategory of the general contractor license is the residential contractor license. It is the second most general type of license. In Florida, a residential contractor license allows contractor to "make contracts and to accept financial advance payments for general construction of or for any improvement to a residential property consisting of not more than four units." This category of license also allows contractors to make contracts and receive advance payments to make purchase the final improvements for residential property of no more than four units. Residential contractors are also permitted to supervise the construction of mobile homes on commercial lots and to service and repair mobile homes. A residential contractor may perform any of the services or contractual obligations of a general contractor with respect to "the construction, erection, alteration, repair, or improvement of any building or structure intended for use as a residence." Residential contractors may also perform the same work general contractors do relating to "roads, sidewalks, parking and walkways, landscape, and fences, gates, and overhang." To qualify for a residential license through certification, the board will look at 4 years of supervisory experience or 5 years of experience as a residential contractor to determine if the applicant is qualified.
Specialized Contractors Licenses in Florida
In addition to the general contractor’s license, or the more limited building contractor’s licenses, Florida has several specialty contractor licenses. These include, but are not limited to electrical, plumbing, mechanical, and roofing licenses. Traditionally, specialty contractors work on existing homes as subcontractors working for either a general contractor or a building contractor.
Electrical, plumbing, and mechanical licensees can perform work on both residential and commercial structures. However, due to their complex nature, depending on the jurisdiction, the type of work they can perform is limited by the licensing authority.(from Miami-Dade) Plumbing and mechanical contractors must have a permit with local plumbing or mechanical permit holders even if no plans are provided.
The following is a general outline for each of the specialty licenses:
The purpose of the specialty contractor license is to separate contractors who spend most of their energy in an area of construction, such as plumbing, from those who conduct most of their work in general or heavy construction. However, there are some requirements that are common to all license types in Florida.
Florida Contractor License Application
Florida law requires all contractors to either obtain a license or register with the appropriate local permitting authority to be able to pull a permit and perform certain construction services. Contractor occupations in Florida fall into two categories: certified and registered. Certified contractors are licensed at the state level and may work anywhere in the entire state of Florida. Registered contractors must obtain a certificate of competency from a local board, which generally restricts their activities to within a particular county or municipality.
To obtain licensure, an applicant must submit an application and examination scores to the Department for review ahead of any taking of licensure examinations. The Department will not approve any individual who has had his license revoked in the past for just cause. Certain types of licenses do not require examination, and applicants for master and specialist licenses in electrical, plumbing, or HVAC occupations are subject to OSHA-certified training as well .
The Department and local boards hold licensure examinations throughout the state multiple times per year at assigned testing centers. The examinations are administered by private, third-party vendors who permit rescheduling and retaking of failed examinations in a timely manner dependent on the type of licensure.
Licensure eligibility information is maintained at the Department office and all current applications are processed and approved or disapproved by Department staff. Local boards do not process certification applications until applicants have received a passing grade on the licensure exam. Applicants denied licensure in the past by the Department or by a local board or other authority may apply for reconsideration, but successful applicants must address any disqualifying factors.
Patent defects on plans filed with building departments can result in rejection of applications without notice to the applicant. Challenges to the decision of county and city boards are conducted by the appellate review board, which is authorized to issue certificates of competency by way of appeal.
Renewing Your Florida Contractor License
Once all of the aforementioned conditions have been met, the final step is to renew the license. Licenses must be renewed every two years. Renovations are due on odd-years and even years. Contractors should inquire what month their renewal is due. The renewal fee is very reasonable and with today’s online technology the process is fairly easy.
As part of the application, the contractor is required to show proof of completion for fourteen hours of continuing education every renewal cycle. The requirement is specific and relatively easy to obtain for someone who is engaged in the trade.
Contractors are also required to show within the license application that they have secured a bond and insurance in the appropriate amounts. Proof changes depending on the county. In Orange County, for example, a general liability policy is required in the amount of $1,000,000 per occurrence and $2,000,000 in the aggregate. In addition, Florida law requires the contractor to maintain workers compensation insurance for employees and a minimum of $1,000,000 in general liability insurance. The cost of insurance for contractor’s can be considerable. In addition, the discounted rates offered by the Northeast Florida Builders Association for insurance and bonding are not available to contractors whose licenses have lapsed. Insurance companies typically charge contractors whose licenses have lapsed a higher premium for a certain period of time once the license is renewed. The cost can vary dramatically from one company to another.
Should a contractor fail to renew his or her license on time, they may continue to operate for an additional 30 – 60 days after the license has expired; following which the license will be considered inactive and the contractor is ordered to cease doing business until the license is renewed. A penalty, often called a "late renewal fee," will be assessed.
The Risks of Operating Without a License
The absence of a proper contractor license not only opens the door to civil penalties but also a host of other legal consequences. We have seen cases where contractors enter into contracts – ones that include mandatory arbitration provisions – for which they lacked a license, get the deal and die in a legal argument with their own family members after a dispute arises cannot even go to arbitration because a Florida statute says you cannot arbitrate a claim or file a lawsuit if you are unlicensed under the governing statute under which the claim is made.
For example, the Florida Building Code is an entirely separate statute from the Florida Construction Lien Law, but both statutes impose licensing requirements. The Florida Building Code governs all aspects of building construction and remodeling, from plumbing to structural repairs and remodeling. The Florida Construction Lien Law provides for the imposition of liens upon real property to secure payment of monies owing the contractor or subcontractor.
If your contract is one you need a license for before you can enter into it, and you don’t have the license, you are prohibited from bringing a civil action on it. The law Governing this situation is as follows: "No person may … institute any action in any court for the breach of any contract entered into in connection with any business for which a license is required by this part or by s. 489.105(3)(n), (o), or (p) unless at the time of entering into the contract the person was so licensed; and no person may intervene in any action instituted by another for the breach of such a contract."
In English, if you don’t have the license specific to the type of work you are seeking to be paid for you can’t sue, be sued or otherwise seek a remedy in court or arbitration. Moreover, the person you are trying to enforce under your contract with will pay you back for any money you have provided in reliance on your unlicensed contract. (Good luck, of course).
There are always work arounds. If you are looking to enforce a contract for unlicensed work, you will want to consider suing under the doctrine of quantum meruit. In this situation, the Court will determine what you might have been paid based upon comparable work for a similar property, without regard to your proposed contract price. Bear in mind that the Court always has discretion and the outcome may go against you depending upon the facts.
Worse still, if you’re a consumer and you’re dealing with an unlicensed contractor, you may be forced to put in more money to repair future issues or you may even be left without a remedy entirely. Florida law states that if someone enters into a contract with an unlicensed individual for work for which they hold an appropriate license, the consumer may not recover anything.
The moral of the story here is that if you are hiring a contractor, you should verify whether or not they hold the appropriate license for what they are doing. If you are a contractor, don’t take jobs without checking your requirements first. If you’re not sure, contact an attorney.
Resources for Contractors
The path to becoming a licensed contractor can often seem daunting and complex. However, a wealth of resources and support systems are available to aspiring contractors in Florida. From educational programs to professional organizations, these resources provide guidance, training, and valuable networking opportunities. Numerous trade schools and community colleges offer contractor-specific training programs throughout Florida. These institutions typically cover a variety of topics including building codes, safety regulations, and project management. In addition to vocational education, prospective contractors may also want to consider enrolling in business management or entrepreneurship courses. Many educational institutions offer courses tailored specifically to the construction industry that can provide crucial skills like contract negotiation and estimation. Local Home Builders Associations (HBA) are another excellent resource for aspiring contractors. These organizations often provide seminars, workshops, and networking events exclusively for industry professionals. They can also connect apprentices with mentor contractors who guide them through on-the-job training and can help answer questions about local regulations. The Florida Home Builders Association (FHBA) is the state’s largest association of residential building professionals. Serving over 140 local chapters and affiliate members , the FHBA provides information on industry trends, legislative updates, and access to an extensive database of training programs and events. Its mission is to advance the homebuilding industry for all its members and further the American dream of homeownership. Online, the Construction Innovation Hub provides a comprehensive list of training programs, schools, and certifications for contractors. It covers everything from foundational courses for general contractors to specialized training in newer areas like smart home technology or energy efficiency. Finally, networking with other contractors and industry stakeholders can yield many benefits. Depending on the specific area of contracting, there may be national associations that offer local chapter meetings, seminars, and resources. In addition, websites like LinkedIn can also be a powerful tool for connecting with potential employers or partners. Florida’s licensing system ensures a minimal level of training and skill for contractors within the state, but it shouldn’t dissuade potential applicants. The vast array of resources available makes it an all but attainable goal, offering not only the chance for new contractors to prove their worth in the industry but also providing a path for further professional advancement.