Florida General Contractor License Application Requirements

The Types and Requirements for a Florida General Contractor License

If you’re interested in becoming a general contractor in Florida, you need to be licensed to perform construction work legally. There are two primary licenses to choose from which will allow you to perform general contracting work either throughout the whole state of Florida or only in a specific local jurisdiction. In both cases, the licensing is done through the Florida Construction Industry Licensing Board (which operates under the Florida Department of Business and Professional Regulation.) These agencies have established the requirements for getting a general contractor’s license in Florida. 

A contracting company will also need to register with the appropriate agency (after determining their business structure), in order to become licensed for tax numbers. 

It seems like there is a lot that needs to be done, but these are the most important steps:

Understand the Application Requirements for a Florida Contractors License

There are different license types and your choice will depend on which contractor license you are looking for but, in general, you will need to:

• Be eighteen years or older
• Have proof of your financial solvency, including a FICO credit score of over 660 (if it is lower, you can purchase a surety bond).
• Scan and comply with electronic fingerprinting (there are a number of approved Livescan Device Vendors)
• Pass your Florida State Construction Exam
• Fill out your application
• Pay all applicable fees (including application and licensing)
• Provide proof of general liability insurance, and workers’ compensation insurance

Choose the Type of General Contractor License and Meet Additional Requirements

There are two types of general contractors’ licenses available in Florida:

A Certified License

This is valid throughout the state, so you are permitted to work anywhere in Florida.

A Registered License

This limits you to working within a local jurisdiction and you will also need to have been issued a certificate of competency by the jurisdiction. 

From there, you can then apply for a more specific contractor’s license. As a general contractor, the most important ones to consider are:

• Building contractor – for commercial or residential buildings over three stories high, this license allows you to work on construction, repair, remodeling or improvements.
• Residential contractor – for dwellings of between one and three families that are no more than two stories high, you can work on construction, repair, remodeling or improvements.
• General contractor – there is no limit on the improvement of any structure or building type and you can carry out construction, repairs, alterations, remodeling, and improvements.

Applying for a Certified General Contractor License 

It is possible to apply for a general contractor certified license either as an individual contractor or as a qualified business. Applicants are first required to pass the state certification examination, and once that has been passed, the application for licensure can begin. 

Tasks include:

• Downloading and completing the Florida State Construction Examination application.
• If the exam is passed, downloading and completing the application packet (for either an individual or business).
• Provide additional documentation including a FICO approved credit score, and proof of education and experience (applicants must have four years of experience or a combination of college and experience).
• Undergoing a background check including fingerprinting.
• Securing general liability and property damage insurance.
• Securing workers’ compensation insurance (or being granted an exemption within 30 days of receiving a license).

Getting a general contractor’s license in Florida doesn’t need to be complicated or difficult. Partnering with Contractors Reporting Services in Tampa, FL, makes the process simple and smooth-sailing. With many years of experience in the industry, they’ll take care of the applications and paperwork so that your general contracting business gets up and running quickly. 

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Real Estate Trends in 2020

Projected Real Estate Trends for 2020 Analyzed by Contractor Licensing Experts

Realtor.com has recently published its housing market predictions for 2020. In the forecast, analysts looked at four areas: supply, demand, home sales, and the move to affordability.

1) Supply

Low affordability and higher interest rates caused growth in the housing inventory, while higher housing prices and higher interest rates raised barriers to entry. Houses sat on the market, and mortgage rates dropped. Borderline buyers entered the market. At the start of 2019, two out of three markets were seeing inventory growth. By the end of 2019, only one in ten markets were seeing inventory growth, placing housing into acute shortage mode. Acute shortage mode will drive prices up and create an opportunity for new home construction.

2) Demand

Several factors impact demand. A low-interest-rate environment, rising rents, and the growing millennial population broadened the potential home buyer pool and kept alive a robust demand in 2019. Buyer sentiment reached a high point in the summer months and energized sales growth in the fall. By the end of 2019, low affordability and economic uncertainty cooled buyer sentiment.

According to the article, “For the first time ever, Millennials’ share of mortgage originations will surpass 50 percent in the spring, outnumbering Gen X and Baby Boomers combined. The last generation to take more than half of all purchase originations was Gen X in 2013, just six years ago. Accordingly, other generations’ footprint will continue to contract, with Gen X and Baby Boomers taking 32 and 17 percent of mortgage originations respectively.”

3) Home sales

The decrease in sales is projected to be accompanied by flattening growth in price. With the supply of available homes continuing to be delicately balanced, and the entry-level demand expected to remain strong, prices are estimated to rise by 0.8% in 2020.

4) Move to affordability

Forecasters highlight a cultural feature of the Millennials that has impacted real estate development nationwide. Millennials are currently drawn to the city.

The article explains, “A dominant trait of this real estate cycle has been the renaissance of the urban downtowns. As younger generations returned to downtown cores, employers and developers responded by building offices, retail, and housing in high-density environments. However, as the costs of development and construction rose, so did housing prices, especially given the propensity for builders to bring mostly high-end, luxury products to market. Over the past decade, demand for downtown living trended on an upward curve, driven by a desire for proximity, and lifestyle amenities, especially on the part of Millennials.”

However, aging Millennials are maturing and starting families. They have shifted their priorities and are looking for more affordable housing outside the bustle of the city. On the other end of the spectrum, Baby Boomers are looking for lower taxes, a milder climate, and more affordable living in general.

What will 2020 be like for buyers?

Buying a home in 2020 will offer opportunities for some buyers. The supply of new homes will relieve some pressure on inventory, and prices will tend to move toward affordability. The inventory of new homes in 2019 remained focused on the high-end, but, as the luxury market cooled, builders signaled their intent to increase offerings in the mid-price segment. First-time buyers will continue to struggle with finding a home where they want it and at a price they can afford. They will still struggle to some extent, even with mortgage rates in an approachable range, since entry-level inventory is expected to remain somewhat tight. The widespread moderation in price will continue to offer opportunities in mid-sized markets in the Midwest and South.

What will 2020 be like for sellers?

Quoting from the article: “Sellers in 2020 will contend with flattening price growth and slowing activity, requiring more patience and a thoughtful approach to pricing. Sellers of homes priced for entry-level buyers can expect the market to remain competitive and prices to stay firm. At the upper end of the price range, however, properties will take longer to sell, and incentives will be needed to close deals. As the market moves toward a more balanced scenario, sellers who adjust to local market conditions can expect to benefit from continuing demand.”

How Will the 2020 Presidential Election the economy?

While some political elections can have an impact on the economy and housing markets, the outcome of elections is not linked directly to the performance of the markets. Expectations linked to a political party’s or an administration’s likely legislative or regulatory actions can influence confidence and decision-making.

The report provides the following forecast for key housing indicators:

• Existing home sales will decline by 1.8%. 
• Single-family home housing starts will increase by 6%. 
• Home price growth will flatten, with a forecasted increase of 0.8%.
• Inventory will remain constrained, especially at the entry-level price segment.
• Mortgage rates are likely to bump up to 3.88 percent by the end of the year.
• Tight inventory and rising mortgage rates will lead to dropping sales.
• Buyers will continue to move to affordability, benefiting mid-sized markets.

To be ready for the opportunities in 2020, general contractors must prepare. With over fifty years of experience in Florida helping contractors of all types, Contractors Reporting Services guides contractors through the nuances and typical challenges associated with obtaining a contractor’s license as well as incorporation, renewals, annual reporting, credit reports, bonds, and more. Contractors Reporting Services comes alongside the contractor and handles all licensing needs.

For more information about obtaining a Florida contractor’s license, contact Contractors Reporting Services at (813) 932-5244 or email the team at info@activatemylicense.com. Visit them on the web at https://activatemylicense.com.

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Filing a Mechanics Lien in Florida

Florida law offers strong lien rights for general contractors and suppliers. Providing that correct paperwork is in place if a contractor isn’t paid for a job, they are able to file a lien to receive payment as well as protecting themselves. In cases of non-payment, there are requirements that need to be fulfilled and a strict process followed. 

These are 3 important things you need to know about the mechanics lien law in Florida:

 

1) The Notice to Owner is a Strict Requirement

A preliminary notice (referred to as the Notice to Owner) needs to be delivered as soon as possible after the first labor or materials are provided. For parties who do not contract directly with the property owner, they must serve a Notice to Owner within 45 days of providing labor or materials to the project. The two exceptions are for individual labourers as well as design professionals (such as architects and engineers) who are not required to send an NTO.

There is also provision for property owners to request a list of subcontractors and suppliers from the general contractors. If the general contractor receives this request, they have 10 days from when the request is made to supply the list of subcontractors and suppliers that they have hired for the project. 

Who receives the notice?

• If you have been hired by the general contractor, the notice should be sent to the property owner.
• If you were hired by a subcontractor, the notice should be sent to the property owner and the general contractor.
• For those hired by a sub-subcontractor, the notice will need to be sent to the property owner, the general contractor as well as the subcontractor.

If you are involved in a construction project, and you don’t know who these parties are, help is at hand. Florida’s Notice to Owner law means that you can rely on publicly available information.

Importantly, when sending the Notice to Owner in Florida, it must be sent by Certified Mail, and a Return Receipt must be requested.

 

2) A Mechanics Lien Must Be Filed Within 90 Days From the Last One Doing Work (This Excludes Warranty Work)

Florida lien law is different from many other states in that mechanics lien claimants must record mechanics liens within 90 days from the last day that they did work on the project. The 90-day period starts from when the substantive portion of the work has been completed and does not include the correction of deficiencies in work, or warranty work. In the case of equipment rental companies, the count down starts from the last date that the equipment was on-site and available for use.

In most cases in Florida, the mechanics lien must be recorded with the Clerk of Court where the county maintains property records. The exception to this is where the county has a designated County Recorder who is responsible for property records. Before filing your lien, determine where it needs to be filed so that there is no confusion, and the lien is filed within the deadline.

 

3) Not All Parties Have Lien Rights in Florida

Mechanics lien law provides lien rights to general contractors, subcontractors, material suppliers, laborers, professionals, and equipment rental companies. In Florida, there is no requirement that you have a written contract in place in order to file a mechanics lien. But the following parties do not have rights to file a mechanics lien in Florida:

• Suppliers to suppliers
• Suppliers to sub-sub contractors
• Sub-sub-subcontractors
• Maintenance workers
• Parties who should be licensed in Florida, but are working without a license

Contractors Reporting Services in Tampa, Florida, specializes in assisting clients with when, where and how to file a mechanics lien. Trust them to help you with the paperwork while you focus on fulfilling your contracts and securing new ones.

The following information was originally seen on Filing a Mechanics Lien in Florida and is republished from Contractors Reporting Services. See more on:} The Contractors Reporting Services Blog in Tampa

3 Frequently Asked Questions About Filing the Notice of Commencement in Florida

When it comes to the filing of the Notice of Commencement in Florida, there are a number of questions that come up most frequently. For general contractors and subcontractors, it’s important to understand the protection that the NOC offers. And for all involved parties, the Notice of Termination has a critical part to play in the ending of the Notice of Commencement, which also has implications for parties involved in the project.

How does the Notice of Commencement protect general contractors in Florida?

The Notice of Commencement benefits general contractors in much the same way as it benefits property owners. Importantly, the NOC designated the start date of the project, posing a strict deadline for the notice requirements that need to be sent by material suppliers and subcontractors. And, if payment issues arise in the future, the general contractor in Florida will only need to deal with the mechanics lien claims of parties that have met the pre-lien notice deadlines.  

This would be an issue in the case where a subcontractor leaves the project before completion without settling their dollar-outstanding money (Outstandings) with sub-subcontractors and equipment suppliers. If sub-subcontractors and other project participants had not submitted their pre-lien notices before the deadline, this would have the effect of rendering their mechanics lien-claims null and void. This would mean the general contractor would not be liable for any of the debts that were incurred by the subcontractor.

 

Why is the Notice of Commencement important for material suppliers and subcontractors?

The NOC has an impact on potential lien claimants for all parties down the contracting chain from the subcontractor, sub-subcontractor and more. In addition to its other important roles, the NOC contains almost all of the information that will be needed if pre-lien notices need to be filed.  Specifically, the mechanics lien itself is found on the Notice of Commencement.

The Notice of Commencement also contains the names of the property owners along with their contact information. So, in the case of filing a mechanics lien, these parties will need to be served and having the correct information is important. 

The NOC also contains the official starting date of the project. This date forms the base from which preliminary notice deadlines can be calculated as knowing when to issue pre-lien notices is critical for protecting lien rights. 

Payment issues come up regularly in the construction industry, so a carefully planned timetable for potential mechanics lien-claims is a good precautionary step.

 

Is it possible to terminate a Notice of Commencement and how is it done?

In Florida the Notice of Commencement can be terminated. This happens when a property owner experiences financial issues, or in the situation where they wish to terminate all, or in some cases, part of the construction. 

If an NOC is to be terminated, the property owner will need to:

• File a Notice of Termination including the same information that was included on the NOC
• Specify the date when the commencement notice will be effectively terminated in the Notice of Termination
• State clearly in the Notice of Termination that all claimants have been paid in full
• Serve copies of the Notice of Termination to the general contactor and all other claimants before the Notice of Termination is recorded.

For a full understand of the process for terminating the Notice of Commencement in Florida is available on Section 713.132 of the Florida Statutes.

 

Contractors Reporting Services in Tampa, Florida offers help for property owners and general contractors by providing assistance with the paperwork allowing their clients to focus on getting the job done.

The next post was first published on 3 Frequently Asked Questions About Filing the Notice of Commencement in Florida and is republished from Contractors Reporting Services. Read more on:} Contractors Reporting Services Blog

Importance of Following Lien Law and Filing the Notice Commencement

Within the construction industry in Florida, deadlines and time frames are strongly enforced which means that general contractors need to have their paperwork in order. It’s also important for keeping the project on track, for example knowing the start date of a project is important, but how does one know the exact date? It’s available in the Notice of Commencement.

 

What is the Notice of Commencement?

The notice of commitment, also known as the “Affidavit of Commencement” or the “Notice of Project Commencement” is an official document that declares the starting date of a construction project. It’s the same day that the contractor, subcontractor, or support can start providing labor and materials for the project.

 

The NOC is thus an announcement that a project has started. It also contains information that is useful for different stakeholders at various stages of the project.

An NOC will usually contain:

• The property owner’s name and address
• A description of the property and the full address
• A brief description of the work that is to be done
• The general contractor’s name, address and contact information
• The contractor’s surety information
• The lender’s information
• Details of the property owner’s legal representatives
• The expiration date of the Notice
• The property owners’ signatures (helpful if payment issues arise)

 

For general contractors in Florida, this information, as well as the signatures from the property owners, is very important. The information can be used if payment issues arise. Additionally, pre-lien notices (such as the Notice to Owner and the mechanic's liens) will rely on this information. It is therefore recommended that general contractors, as well as subcontractors and suppliers, take note of the information provided in the Notice of Commencement.

 

Who files the Notice of Commencement?

The NOC is typically filed by the property owner, and in some cases, the general contractor. It is served just before or just after work is carried out on a project. It must be officially recorded at the local state office where the project is based, in Florida.

 

It must be signed by the property owner, and their legal name must be stated on the NOC. That person will also be required to sign the document. In situations where there are multiple numbers, for full compliance, it is recommended that all property owners provide their signatures.

 

Why is a Notice of Commencement Filed?

The lien laws in Florida explicitly require the property owner or the general contractor to file a notice of commencement. And in Florida, the Notice of Commencement is the starting point for the mechanic's lien process. The information found on the NOC will be used to fill pre-lien notices by participants on the project because a Notice to Owner is a legal requirement in Florida.

 

The NOC also allows a general contractor in Florida (as well as subcontractors and suppliers) to schedule the filing of other important documentation. For example, the preliminary notice needs to be sent within the first 15 days of the project, and that 15-day count begins on the date recorded in the notice.

 

Are There Consequences if An NOC is Not Filed?

In Florida, the general contractor will not be able to secure a building permit unless they are able to produce a correctly filed NOC. It may also lead to double payment for the property owner if the contractor leaves before paying subcontractors and suppliers because, without an NOC, the property owner will have violated Florida’s rulings on mechanics liens. This will then make them responsible for all payments to stakeholders even if the contractor has been paid in full. 

Contractors Reporting Services in Tampa, FL, understands the importance of filing all required paperwork correctly and on-time. They help general contractors and other construction stakeholders ensure that all the documentation for a project is in order to ensure that their clients can focus on the project, rather than papers.

The next information was first published on Importance of Following Lien Law and Filing the Notice Commencement and is republished from Contractors Reporting Services. Read more on:} http://activatemylicense.com

Answering Questions for Prospective Vocational Rehabilitation Vendors

Vocational Rehabilitation (or VR) is a federal-state program. The program aims to help people with physical or mental disabilities to find and hold down a job. VR is focused on helping people with disabilities establish meaningful careers.

For individuals to become eligible for VR services, they must:

• Have a physical, mental, emotional or learning disability that is a barrier to gainful employment
• Need VR to help prepare the individual to gain or keep employment
• Be able to benefit from the VR services

 

What is a Vocational Rehabilitation Vendor?

Vocational Rehabilitation vendors are individuals or business that makes their services available to VR customers that will help contribute to the goal of employment. This includes services such as medical services, opportunities for training, and specialized equipment. Vocational Rehabilitation will register all vendors from whom services are purchased for VR customers. 

 

What are the Different Types of Services That Vocational Rehabilitation Offers?

As per their website, Vocational Rehabilitation offers:

• Medical and Psychological Assessment – to determine what the client needs in terms of medical and psychological support
• Vocational Evaluation and Planning – to determine what the client is capable of, and take steps to meet that potential
• Career Counselling and Guidance – here, vocational counselors will talk with VR clients to determine skills and interests and define work goals.
• Training and Education After High School – this can include programs and classes that teach specific job skills, 
• On-the-Job Training – including vocational training, clients, receive the skills they need to pursue a specific career
• Supported Employment Services – such as a job coach to help the client manage the requirements of their position
• Assistive Technology and Devices – special devices and accommodations will be provided to do the job. This includes enlarged print, TDD or raised desks for a wheelchair. 

 

What Kind of Remuneration Can Vendors Expect to Receive?

For healthcare-related services, Vocational Rehabilitation follows the amount payable as outlined by the Medicare Part B system. Per diem payment for hospitals are paid according to the amount payable under the Medicaid system. For all other services, the VR sets its highest allowable fee such that the fee is not too low to deny individuals the right to make an informed choice for themselves. 

 

How Can Businesses and Individuals Register as VR Vendors?

Vendor registrations is a 3-step process:

• The prospective vendor must register with MyFloridaMarketPlace (MFMP),
• They must then submit an electronic W-9 with the Department of Financial Services (DFS), 
• Lastly, they must register with VR

 

Do All Vendors Undergo Background Screening?

All individuals who provide direct services to VR customers are required to register with the Agency for Health Care Administration (AHCA) Care Provider Background Screening Clearinghouse (CLH). Here they will need to submit to and pass level 2 background screening.

 

Once the application to provide VR services is approved, the vendor will be sent an email with the instructions for background screening. This is done via email and will assist with the fingerprint registration process.

 

What are the Next Steps After the Application Has Been Submitted?

If all three steps have been completed, the processing time is around ten business days. This does not include the time taken for background screening. 

 

To check your application status, allow ten business days before enquiring, after which time an email can be sent to verify the status. Once the application has been processed, a registration determination will be made (either Approved, Denied, or Incomplete), and the prospective vendor will be notified of their status.

Contractors Reporting Services in Tampa, FL, helps clients to register and get approval as Vocational Rehabilitation Vendors. Their experience in working with the program ensures that they can efficiently and effectively process their clients’ applications, giving their clients the best chance of being approved.

The following article was first seen on Answering Questions for Prospective Vocational Rehabilitation Vendors and is courtesy of Contractors Reporting Services. Find more on:} http://activatemylicense.com

How to Find the Best General Contractor for the Job in Florida

Before starting work on a renovation, extension, or building project in Florida, someone with a valid general contractor’s license will need to oversee the project and hiring the right person will be the

first thing that needs to be done. This is one of the most important steps and shouldn’t be rushed. The individual should have the right credentials, they need to have a valid license, and they should also have the right experience to be able to complete the job successfully. Once the general contractor for the project has been hired, they will then be able to hire the relevant sub-contractors, including plumbers, carpenters, and electricians.

There are two main checks that should be done before hiring a general contractor:

1. Check That the General Contractor’s License is Valid

In Florida, the regulation of general contractors is overseen by the Florida Department of Business and Professional Regulation (DBPR), and they have all the licensed contractors listed online on MyFloridaLicense.com. It is possible to search by Licensee Name, Licensee Number, by City or County, or by License Type. Simply navigate to the website, type in the details, and search. For a more general search, the best option is to search by city to receive a list of licensed contractors.

Check the Details of the License

The results will show the type of license, the license number, and the status. Pay particular attention to the status – it should be Current, Active (not Revoked, Null and Void or Suspended). By clicking on any of the results, it is then possible to see the contact details – check those against those that the contractor has provided you with, as well as the license information including the licensure date (when the license was first granted) and the date of when the license expires.

Check That There are No Complaints Against the General Contractor

At the bottom of each listing, there is a link to view any complaints that have been filed against the general contractor. Have a look to check that everything is in order, and there are no outstanding or unresolved issues.

2. Ensure That the Contractor Has a Good Track Record

The best way to ensure that a general contractor with a valid license will be a good fit for your job is, after verifying their credentials, to look at previous work and talk to past employers. People who have worked with the contractor in the past will be able to verify that they:

• Completed the work to specifications and within budget – it is a good sign if the general contractor can complete work as required and that the project isn’t likely to run over budget.
• Conducted themselves professionally and stuck to timelines – having regular feedback and milestone completion can help to keep the project moving along according to schedule.
• Hired sub-contractors who were proficient and licensed – hiring quality subcontractors can make the difference between a project that is a success, and one that doesn’t have a good outcome.
• Have the relevant experience to complete the job - it’s helpful if the general contractor has successfully completed jobs that are similar to the new project as it increases the chances that the new project will go well.

The final check is to ask whether the previous employer would recommend the contractor and why. There may be considerations on the current project that have not yet been envisioned, and a previous employer may bring something to light that will have implications for the new project.

Contractors Reporting Services has been helping contractors with their general licenses in Tampa, Florida for many years and their team has the relevant experience to help you stay up to date with licensing requirements, whether you need help with the application or renewal process

The next info was first published on How to Find the Best General Contractor for the Job in Florida and is republished from Contractors Reporting Services. Find more on:} Contractors Reporting Services Blog