How to Get a General Contractor License in Florida

How to Get a General Contractor License in Florida

To get a Florida contractor’s license, you are required by the state of Florida to be approved by the Department of Business and Professional Regulation, and there are two key steps to complete before a license can be issued: first, completing the exam and second, submitting an application. There are two different licensing classifications. The first is a general contractor certified license. This is valid throughout Florida and grants permission for the contractor to work anywhere in the state. The second is a general contractor registered license. This limits the contractor to working within certain specified local jurisdictions. The contractor is also required to hold a certificate of competency issued by those jurisdictions. Step 1: Complete the Exam Certified General Contractor License in Florida An applicant who has applied for a certified general contractors license in Florida will need to pass the Florida State Construction Examination before beginning the application process. General Contractors License Exam Developed by the Bureau of Education & Testing, the examination is split into three parts, and the applicant is required to pass all three. The three exams are project management (written exam taken at a test center), contract administration (written exam taken at a test center) and business and finance (computer-based exam, administered at Pearson VUE). The first and second test segments may be taken in Orlando, Miami or Tallahassee (the applicant is required to select a first and second choice when applying). The tests can be taken in February, April, June, August, October, and December. In order to take the tests, the completed application and fees need to be received by the testing...
What is a Florida Contractor’s License and Why is it So Important?

What is a Florida Contractor’s License and Why is it So Important?

In order to provide contractor services in Florida, a person should hold a general contractor’s license. In Florida, there are two classifications for contractor license, namely ‘certified’ and ‘registered.’ A contractor should hold a valid license to avoid penalties and a loss of rights (an exception is if the scope of work falls under ‘basic handyman services’). What is the Difference Between a Registered and a Certified Contractor License? The key difference between the two is that a certified contractor license allows the contractor to complete work throughout the entire state whereas a contractor with a registered contractor license is limited to specific jurisdictions. Certified Contractor License To become a certified contractor, a contractor needs to pass the Florida State Certification Exam, either the Division I (for general building and residential contractors) or Division II license (for trade-specific contractors such as commercial pool installation, HVAC, drywall and plumbing). The Division I exam consists of 3 sections: Project management Contract administration Business & finance The Division II exam has only two sections Business & finance Trade knowledge Registered Contractor License To become a registered contractor, you need to have passed the certification exam or hold a Certificate of Competency (issued by the local licensing office). Why is a Florida Contractor’s License Important? Holding a valid license is vital to avoid penalties issued by the State of Florida, as well as the loss of rights that happen as a result of working as a contractor without a license. To Avoid Penalties In Florida, unlicensed contract work is taken very seriously. A first offense (considered a 1st-degree misdemeanor) allows for up to...
Understanding the Notice Requirements Under Florida’s Lien Law

Understanding the Notice Requirements Under Florida’s Lien Law

An Introduction to Lien Law and Filing the Notice Commencement If you work in the construction industry or own a property that requires work done to it, it is important to have a thorough understanding of Florida’s lien law and the Notice to Owner requirements. What is the Purpose of Florida’s Lien Law? The lien law can be utilized by a supplier, contractor or subcontractor to ensure that they are fully compensated for work that they complete or for their materials. It also protects the owner of a construction project from having to pay twice for work done or materials associated with the project. What are Lien Rights? These are the rights established by law in Florida that allow a lien to be filed in the event of non-payment. It’s important to understand the implications of this to make sure builders are compensated for their work, and owners do not become a subject of a lien or end up paying twice for the work. Lien rights are particularly important because of the way that they govern the builder’s relationship with the owner of the property as there can be a significant impact on lien rights if there is a crossover between a subcontractor and a contractor’s scope of work. Common Contract Situations and Implications for Serving a Notice to the Owner There are two main contract situations that commonly arise: when the contract is with the owner of the property, and when the contract is with someone else other than the owner. Contract with the Owner If the contract is for an amount greater than $2500 between the owner...
Worker’s Compensation in Tampa, Florida: We Answer Your Top Questions

Worker’s Compensation in Tampa, Florida: We Answer Your Top Questions

All businesses that are involved in construction in Florida, including Tampa, are subject to a specific set of rules and regulations that govern the way that they do business. We’ve compiled a list of the most important questions that will help prevent experience mod workers’ compensation overcharges. Is my business classified as a construction business? The best way to check this is to access the Florida Division of Workers’ Compensation which has published the official list of which business class codes are considered to be part of the construction industry. Here is a link to the list: https://www.flrules.org/gateway/notice_Files.asp?ID=10040390 For businesses in the construction industry, what are the requirements for workers’ compensation compliance? Florida legislation for construction businesses requires either an active workers’ compensation policy or alternatively, a valid exemption for workers’ compensation. Even if you already have an exemption for yourself as the owner of the company, you will still need a valid workers’ comp policy that covers each individual that you employ. The legislation stipulates that every employee that works on a construction site in Florida is required to be covered by a workers’ compensation policy (or hold a valid exemption). This ruling applies to both long-term employees and short-term hires that are brought on to the job site to help out. How does an exemption work and can I apply for one? You can apply for a worker’s comp exemption if you are a business owner, it allows you to be excluded from having to buy workers’ comp insurance for yourself. Note that this means that if you are hurt on the job, you will not be...
What Customers Look for When Hiring a Contractor in Florida

What Customers Look for When Hiring a Contractor in Florida

Being a general contractor license holder is one thing–being a contractor that customers would love to hire is another. It’s not just about pricing your services well. For a customer to hire you, it’s also important to have the contractor’s license, qualifications, references, and the right workforce. This article discusses some of the things that would make your business more attractive to customers. Get the Correct Florida Contractor’s License Make sure you have the proper FL contractor’s license for your particular expertise and a specific project. Remember that to work on any of the following you must have a FL contractor license: air-conditioning, building, general, mechanical, plumbing, pollutant storage, residential, roofing, sheet metal, solar, swimming pool or spa, and underground utility and excavation. You do not need a contractor license in Florida if you’re doing a project connected to window treatments, wallpaper, paint, flooring, countertops, cabinets, etc. As the holder of a contractor’s license in Florida, you have to be bonded and insured. This shows to your customer that if an accident happens in a project or if you fail to perform in accordance to your contract, they are protected. By indicating that you want your customers to be projected means you are confident enough in your services. Highlight Your Experience Potential customers will check out what past customers have to say about the contractors they are about to hire. Be ready to present references, whether they may be colleagues, peers, or previous clients. Make sure to have at least 5 credible references that know your work well. A new customer may contact references and ask about your abilities...
Construction Contracts: What to Keep in Mind as a FL Contractor

Construction Contracts: What to Keep in Mind as a FL Contractor

It’s good to always be on top of your construction contracts as a holder of a contractor’s license in Florida. You might just want to assume everything will go well. However, a lot of things can go awry when you begin a brand new project. You have to take the time to go through your contract for any flaws or errors. When you do so, you are saving yourself a whole lot of time and effort on legal problems. Timelines Check that the contract has a workable and feasible timeline for both yourself and your customer. On the one hand, customers (property owners, recipient of construction services) probably have stringent deadlines in mind. The customers may have other scheduled tasks that are contingent on your project finishing on time. Maybe a homeowner wants you to finish an addition to their property before they can put it up for sale. On the other hand, you as a FL contractor’s license holder need to say yes to a timeline only if it is doable. Do not over-commit or under-commit. Pricing Before commencing the project, have an agreed price for services that will be rendered by the contractor. Make sure that all details are in the contract. Also, specifications must be made on the pricing scheme. Would the payment be done in lump sum? Through rate per unit? Or is there a more applicable pricing method you have in mind? Terms of Payment The contract must indicate if you would like to receive monthly payments or a lump sum. If you are receiving monthly payments, check that the payment amounts and dates...
Required Experience and Education for a Contractor License in Florida

Required Experience and Education for a Contractor License in Florida

Based on the recent news, the construction industry in the state of Florida is one of the most promising sectors in the US—this makes it an opportune time to acquire a contractor’s license and get the money rolling into your b ank account. Note that as soon as you receive your Florida contractor’s license, continuing education courses are needed for FL contractor’s license renewal (around 14 hours). Before you figure out what kind of experience and education you specifically need, you have to decide what kind of FL contractor license to acquire. There are two different kinds of contractor’s license in Florida. The registered contractor’s license in Florida allows the contractor to work inside a particular area in Florida. What is needed for this kind of Florida contractor’s license is a certificate of competency. And the other kind is a certified license. This FL contractor license lets you as a contractor work anywhere in the state.  Focusing on Experience and Education For Florida, there are different approaches to qualifying for a contractor’s license. First, you must have 4 years of experience and/or education. The education can be 4 years at a school of higher learning that has been accredited and gives you degree that is connected to construction. Or you can opt for 3 years of higher learning course followed by 1 year of working experience in the construction industry. As you can see, there should be a combination of experience and education. There are also other ways in which to combine experience and education in order to qualify as a contractor. You can have 3 years being a...
Financial Responsibilities for a Contractor

Financial Responsibilities for a Contractor

A general contractor license holder is a self-employed individual who takes up contractual assignments and projects. One of the great things about having a contractor’s license is that the holder doesn’t have to deal with the typical employer and employee relationship. This gives them the freedom to work in a more positive way. But this does not mean that their work is taken casually. A contractor should take on the employer responsibilities and tasks and make sure that they are meeting their obligations, particularly the financial ones—which are usually tied to legalities. File Taxes General contractors are responsible for their own accounting or bookkeeping. The general contractor is responsible for paying and filing the taxes on the income they earned from their clients. With this, a client should give the contractor’s license holder a W-9 tax form prior to issuing payments. By the coming January of next year, the client gives the general contractor the Form 1099-MISC, which includes the payment amounts made previously. The general contractor must get all of the Form 1099s from all of the income that they gained throughout the year. Afterwards, they should file this with the Internal Revenue Service, as well as the state revenue office (if there is income tax collected on the state level). For example, you have to file in the Florida revenue office if you have a Florida contractor’s license. The general contractor must also claim entitled deductions for spending on mileage, office supplies, advertising, equipment, and the like.  Get Benefits and Insurance  Being a general contractor, clients do not pay the general contractor salaries or insurance. Of course,...
Steps to Apply for a Contractor’s License in Florida

Steps to Apply for a Contractor’s License in Florida

Applying for a contractor’s license in Florida is accomplished at the local and state level. The process of licensing is under the purview of the Construction Industry Licensing Board, with guidance from the Florida Department of Business and Professional Regulation. In this article, we discuss the steps you need to take to apply for a Florida contractor’s license. Figure Out the Kind of Contractor License You Need to Apply For There are two kinds of FL contractor’s license. At the level of the state, there is the Certified License and at the local level, there is the Registered License. Once you’ve figured this out, you have to determine if you are a Division I Contractor or a Division II Contractor. Division I Contractors are general contractors, building contractors, and residential contractors. Division II Contractors, on the other hand, are more specific, such as Underground Utility Contractors, Tank Lining Applicators, Specialty Contractors, Solar Contractors, Sheet Metal Contractors, Roofing Contractors, Spa/Pool Contractors, Pollutant Storage System Contractors, Plumbing Contractors, Mechanical Contractors, and Air-Conditioning Contractors. Get the Application Forms You can get the application forms through the Construction Industry Licensing Board. Study for and Pass the Exams To get a Certified Contractor License, you have to study for and pass the Division I or Division II exams, as applicable. This does not include Pool Contractors. Professional Testing conducts these examinations. If you think you are ready to take the exams, go online to register and apply through their website or contact them via email at flconstruction@proftesting.com. More information is available in the application form. If you think you need further preparation prior to...
Winning a Project with a Contractor’s License in Florida

Winning a Project with a Contractor’s License in Florida

If you have a contractor’s license in Florida, you know that the very best thing to holding that license is actually winning projects. Winning projects entail that you bid on them first. In fact, construction contractors usually get most of their jobs through the bidding process. In this article, we discuss some ways in which to improve your bidding, so you can win those projects, especially since you have that FL contractor’s license. Remember the Two Golden Rules The two golden rules are: submit very accurate cost estimates and offer the lowest bid among all other contractor’s license holders. The second rule is almost always true when you’re bidding for a government project. For other projects, qualifications and other variables are just as important as your price level. To make sure you’re bidding the right amount, you can make use of construction building software. Be Accurate with Your Bids As previously mentioned, giving accurate bids is very crucial to winning projects. This means, for example, if you have a FL contractor license, you should be able to bid using the costs and terms of material, labor and overhead and indirect expenses. Knowing the right amount will get you to that sweet spot without having to price your bid too low so that you’re losing money or pricing your bid so high that you don’t even get to be considered for the project. There are several ways in which to increase the accuracy of your cost computations. First, factor in quantity takeoffs and work scope. Second, create a bill of quantities, which itemizes the materials and work needed. Third, check...