Exploring the details of general contracting in the State of Florida is an excellent way to realize that the perspective is beautiful. Florida is still in the process of expansion, and this has led to a high demand for licensed contractors. Knowledge of the process is pertinent in acquiring the license and operation of a legal business. This article will explain to its readers how to become a general contractor in Florida. LiteSpeed Insurance is here to help with any insurance issues that one may have in their contractor businesses throughout their career.
Understanding the Role of a General Contractor
A general contractor supervises construction work, personnel, and supplies with subcontractors. They ensure the project complies with the required standards, costs an acceptable amount, and garners successful completion within the set timelines. License is another requirement needed by anybody who wants to drive legally in the state of Florida. As stated, being licensed helps to protect yourself, but at the same time, it helps the clients have confidence in whatever you do. This is the main reason why many individuals prefer to work hand in hand with qualified contractors who are legal in their work. In vain, it references particular work that can lead to fines or penalties.
Step-by-Step Guide to Getting Licensed
Educational and Experience Requirements
In Florida, candidates can satisfy the education and experience requirements to qualify for the general contractor license. You will generally need four years of experience working in the construction industry, but there are nuances:
- Hold a four-year degree in building construction or any other relative course. You can use your knowledge to offset up to three years of experience as required. Translating this means you would only need one year of practical working experience.
- If you did not attend formal education, you will need to prove four years of experience in construction, particularly under a licensed contractor. This experience must be supported by notarized affidavits that detail your experience and specialties in areas of supervision, and principle knowledge of the FL building codes.
Experience Requirements
In Florida, the experience has to be relevant, which means that one has to have first-hand experience working on or supervising projects with a contractor’s license. This experience should include:
- Supervising construction projects
- Managing teams and materials
- Understanding Florida’s building codes and safety regulations: The experience you gain will be vital for passing the licensing exam, which tests your practical skills and theoretical knowledge.
- Passing the Contractor License Exam
To become a general contractor in Florida, you must pass a two-part exam:
- Business and Finance Section: This portion deals with financing the construction companies and companies related to the construction business, such as bidding and contract provisions.
- Trade Knowledge Section: This part quizzes the construction techniques, FBC, OSHA safety codes, and specific trade knowledge and skills.
The candidate must sit for two parts, and one has to pass to proceed with licensing. There are numerous tools for preparation for this challenging test, which include Web courses and exam preparation books.
Fulfilling Legal and Financial Requirements
General Contractor Licensing Fee
Once you pass the exam, you must pay licensing fees to the Florida Construction Industry Licensing Board:
- Applicants may pay Certified General Contractor (CGC) fees between $249 and $309, depending on whether you file during odd or even years.
- Registered General Contractor (RGC) fees are around $149$s.
Further, you must put aside some money for license renewal fees and training.
Certified vs. Registered General Contractor License
Florida offers two main types of contractor licenses:
- Certified General Contractor (CGC): Enables you to operate cross-state.
- Registered General Contractor (RGC): Let’s practice only where you make entries such as the counties or municipalities.
Certified contractors look for jobs freely in Florida. In contrast, a registered contractor may choose to work only in a particular region of Florida.
Financial Stability and Credit Check
According to the regulations of Florida, contractors are supposed to prove financial responsibility. This entails prerequisites with the Florida Department of Business and Professional Regulation (DBPR), such as credit reports. If your credit score is below 660, you may have to secure the same with a surety bond of up to $20000 or assign a Financially Responsible Officer (FRO) that will ensure the protection of clients’ funds.
Insurance Requirements
Each contractor in Florida must maintain general liability insurance and workers’ compensation insurance or be exempt. These are very important because they help shield the business from legal cases and other monetary risks.
- Workers’ Compensation Exemptions: If you are self-employed or an employer with no employee, you may apply for exemption from the compulsory worker’s compensation insurance. This can bring down insurance charges by a considerable margin, especially for small contractor organizations. For business entities with employees, obtaining workers’ compensation is compulsory.
LiteSpeed Insurance can assist you in obtaining quick and affordable insurance policies appropriate for your business in Florida.
Applying for Your General Contractor License
To apply for your general contractor license, one has to forward the application to the Florida Construction Industry Licensing Board. This application will include:
- Proof of experience
- Exam scores
- Insurance certificates
- Fingerprinting and background checks
After successful submission and the approval of the state of Florida, you will receive your license, enabling you to practice as a general contractor legally.
Additional Requirements for General Contractors
Background Check
All general contractors must clear an administrative record check involving fingerprinting by the FDLE and the FBI. Employers want to deal with individuals with no records of fraudulent activities, and clearing the background check may take time or even lead to rejection.
Maintaining Financial Stability
It is essential to have an excellent financial position to sustain in your lifetime career. Subcontractors with weak financial status or credit can be obliged to keep on affording a surety bond to protect the clients.
Maintaining Your Contractor License
Knowing how to keep your license once you have acquired it is also essential. According to Florida, contractors are expected to complete 14 hours of continuing education (CE) every two years before they can be issued new licenses. This includes:
- An hour on the concept of workplace safety.
- Spent about one hour reading and comprehending the Florida Building Code
- 1 hour on laws and rules about contractors
Breaches of the CE requirements can attract penalties, fines, or worse, have one’s practicing license revoked. LiteSpeed Insurance can also assist you in maintaining your required insurance policy to abide by Florida laws.
Opportunities After Licensing
Once licensed, more expensive and profitable projects may be competed for and awarded. One can bid on state and federal contracts. You will also be permitted to hire subcontractors and tackle additional complicated projects to expand your business. A licensed contractor has a broader market share and a better income-generating potential than an unlicensed contractor.
Common Mistakes to Avoid
There are several pitfalls to avoid once you become a licensed contractor:
- Ensure you renew your insurance on time to avoid being penalized with fines or revoking your license.
- Ensure that you finish your continuing education on time to prevent a delay in your license renewal.
- Make sure you are appropriately credentialed for the work that you are doing. This exposure of practice outside the licenses granted to a specific individual exposes one to the law or fines.
- Collect the COIs of all your subcontractors. Exposure to uninsured 1099s can be a huge liability to your business and to your license. Get our Litespeed free subcontractor template list and sign up today for our free mini course on how to track your subs workers comp policy and/or exemptions at zero cost. (redirect to landing page of the subtracking sales funnel)
Conclusion
Becoming a general contractor in Florida is a fruitful one that can lead to great success. With the outlined steps, securing the right insurance coverage and observing all the legal requirements needed for a prosperous construction business is possible. LiteSpeed Insurance is ready to help at every step and provide fast and efficient insurance services to contractors. To get the best insurance solutions and safeguard your business, contact LiteSpeed Insurance today.
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