Florida Subcontractor License Basics
Licencing Basics for Subcontractors in Florida
In Florida, the state defines what requires a license and who does not require a license. Those entities or individuals who violate the state definition of whether a license is required can face substantial fines and civil penalties if found to be operating without a license. The Florida Department of Business and Professional Regulation oversees the licensing of contractors in Florida . Generally, a contractor does not have to have a license and is not required to be registered as a contractor to do work that does not require a license. Those types of work may include tasks such as painting, carpeting and general labor. However, any licensing requirements are also defined such that there must be an understanding of how a particular definition applies to the class of work, business or function that a company intends to provide.
When a Florida Subcontractor License is Mandated
Any work performed by a subcontractor on a commercial or residential project must be licensed. A subcontractor is an unlicensed contractor who enters into a verbal or written agreement with a property owner, general contractor and/or prime contractor to perform a service or provide materials in connection with the project. A subcontractor is prohibited from performing work under the primary contract unless they have a county license, specialty contractor’s license, or a registered or certified license depending upon the type of work being done. Any residential remodeling or contracting requires a license, as the ultimate responsibility for the general construction is with the prime contractor.
Florida Subcontractor Licensing Exemptions
Pursuant to Fla. Stat. § 489.103, a limited exemption applies to any individual or entity with only one contract for the construction, repair, or improvement of a single-family home where that individual or entity is acting as an owner-builder of the single-family home and the individual or entity has in their possession a building permit issued by the municipality in which the home is being constructed. The key factor in this instance is that there is no more than one contract in connection with a single-family home. Fla. Stat. § 489.103 also lists several categories of projects that are exempt from the licensure requirements if a jurisdiction does not issue permits for such work. For example, the construction or repair of nonbearing partitions or interior walls is exempt unless the project otherwise requires a permit. Similarly, projects necessitating the installation of electrical wiring, plumbing, mechanical systems, or the removal or replacement of nonbearing partitions or interior walls, where the work does not exceed $5,000, are also exempt if the jurisdiction does not issue permits for such work. A person or firm engaged in the construction of accessory structures that do not exceed 250 square feet is exempt, as is a person staking a residential lot if the stakeout does not include the marking of trenches, footers, or foundation locations. Unlicensed contracting does not include any person performing or offering to perform contracting work being done under a contract directly with the owner-occupant of the property improved, unless the person performing the work is otherwise exempt. For purposes of Fla. Stat. § 489.103, "owner-occupant" means an individual who occupies a building that is owned in part by him or her and owned in part by another or other entities and who exercises actual, ongoing supervisory control over the construction of work performed on the building. Contractors can always self-elect to be licensed subcontractors.
How to Get a Subcontractor License in Florida
Successful application for a subcontractor license in Florida requires understanding of appropriate procedural steps and necessary documentation. Applicants must begin by filing an application with the appropriate county or city where they will be conducting business as a subcontractor. Applicants generally must include information such as personal details and proof of identification, criminal background history, professional experience, and financial stability. Many applications also ask for proof of liability and workers’ compensation insurance. For example, Orange County asks for copies of social security cards or green cards , a minimum of one year of general work experience, the names and contact information of three personal references, and proof of insurance/worker’s compensation. Each Florida locale has its own set of requirements, so it is important to consult a professional who can advise on what exactly is needed in your jurisdiction. The code enforcement board or department of business licensing will then review the application. The approval process can take anywhere from a couple of days to several months. Upon approval, applicants may be required to successfully pass an exam to demonstrate their knowledge of local building codes and regulations.
Dangers of Working Without a License
Failure to obtain the proper license can have both civil and criminal ramifications. The primary consequence of operating a contracting business without a license is civil liability. Your customers can sue you for the damages they sustained by hiring an unlicensed contractor. They can also sometimes recover treble damages and attorneys’ fees under the Construction Practices Act, Fla. Stat. § 489.128. In addition, several state agencies can impose an administrative fine of up to $500 per offense upon you for each day you work without a license (and if you work more than five days in a month without a license, it will count for more than one offense). See Fla. Stat. § 489.127(1)(d). Knowingly making a false claim about being a licensed contractor is a first degree misdemeanor punishable by up to one year in jail. Fla. Stat. § 489.127(3)(a). State prosecutors can bring forth criminal charges against you, leading to fines and/or incarceration. Possible criminal charges include Grand Theft, Scheme to Defraud, and Contracting Without a License.
Top Tips for License Compliance in Florida
Like applying for a license, you must prove you are complaint on a license before it can be renewed. Here are some tips that ensure your business and professional licenses never lapse:
• Keep accurate records and maintain a good filing system of your business paperwork.
• Stay on your professional organization’s mailing lists for renewal reminders.
• Plan and budget for license renewal fees .
• Set up calendar reminders for renewals to ensure renewal applications are submitted on time.
• Keep proper records of personal information for license applications and renewals.
Effective October 1, 2019, pursuant to Senate Bill 287, the requirement that educational courses for license renewal be taken as part of the two-year period prior to license renewal was repealed, but experience on the job must still be completed.