Who Needs a Florida Contractor�s License?

In Florida, contractors are licensed at both the state and local levels. You may choose to obtain a �certified� license that allows you to work as a contractor anywhere in the state or a �registered� license if you will be working only within a specific municipality or county. In either case, the licensing process is carried out through the Florida Construction Industry Licensing Board, which is part of the Florida Department of Business and Professional Regulation (DBPR).

Both certified and registered licenses are issued in three categories: building contractor, residential contractor, and general contractor. There are restrictions on what types of work that building contractors and residential contractors can do, but general contractors have no such limitations. Both certified and registered licenses are further classified as �individual: or business.�

What Does the Licensing Process Involve?

This article focuses on licensing requirements for general contractors, both certified and registered. Here�s what you need to know about the licensing process for each:

Certified General Contractors

Registered General Contractors

Passing score on the Florida State Construction Examination

Passing score on the Florida State Construction Examination or certificate of competency issued by the jurisdiction

Credit score report showing FICO score of 660 or higher *

Proof of 4 years of experience or combination of experience and education

N/A

Criminal background check and fingerprinting

Proof of adequate general liability and property damage insurance

Proof of workers compensation insurance or an exemption

Completed application

Payment of fee (exact fee depends in when the exam was passed and when the application is submitted)

Payment of fee (Exact fee depends on whether the application is submitted in an even year or an odd year)

* Applicants with FICO scores below 660 must purchase a Florida contractor�s surety bond in lieu of proof of financial solvency.

Why is a Surety Bond Required?

The purpose of a Florida contractor�s license bond is to ensure that all licensed or registered general contractors conduct business in a lawful and ethical manner�in compliance with all applicable statutes, rules, and regulations. These are identified in the terms and conditions of the surety bond agreement.� The bond protects the state against being held liable for any financial loss suffered by consumers due to the contractor�s violation of the agreement.

How Does The Bond Work?

The three parties to the bond agreement are the Florida Department of Business and Professional Regulation (the obligee), the general contractor (the principal), and the company issuing the bond (the surety). If the contractor fails to comply with every aspect of the bond agreement, any party who suffers a financial loss as a result of that failure can file a claim against the bond.

When a claim is filed, the surety will investigate to make sure it is valid. If the principal does not pay the claim quickly, the surety typically will cover it, although payment of claims is the principal�s legal responsibility. The surety�s payment is simply an advance, which the principal must pay back to the surety.

What Does The Bond Cost?

The annual premium for a Florida contractor�s license bond is only a small percentage of the required bond amount. The surety sets the premium rate based on the principal�s personal credit score and financial status. The better the applicant�s credit score, the lower the premium rate.

Get Bonded Today

Let us help you get the contractor�s license bond you�ll need to obtain or renew your Florida contractor�s license. Contact Single Source Insurance today.