Unlicensed Contractors Under Florida Law
Unlicensed contractors are viewed with disfavor in Florida and to regulate the construction industry in order to protect “the public health, safety, and welfare” the Florida Legislature enacted laws, which require contractors to be licensed in order to perform certain services. Fla. Stat. § 489.101. However, unlicensed contractors continue to plague the Florida construction industry. This article provides a brief overview of Florida’s contractor licensing requirements.
Unless limited exceptions are applicable, Florida law defines a “contractor” as “the person who, for compensation … does himself or herself or by others construct, repair, alter, remodel, add to, demolish, subtract from, or improve any building or structure, including related improvements to real estate … and whose job scope is substantially similar to the job scope described in one of the paragraphs of this subsection.” Fla. Stat. § 489.105(3). Florida law further defines several specific types of contractors. Id. at (3)(a)–(q).
For example, the law defines “building contractors” and “residential contractors.” “Building contractor” is defined as “a contractor whose services are limited to construction of … single-dwelling or multiple-dwelling residential buildings, which do not exceed three stories in height, and accessory use structures in connection therewith or a contractor whose services are limited to remodeling, repair, or improvement of any size building if the services do not affect the structural members of the building.” Fla. Stat. § 489.105(3)(b). “Residential contractor” is defined as “a contractor whose services are limited to construction, remodeling, repair, or improvement of one-family, two-family, or three-family residences not exceeding two habitable stories above no more than one uninhabitable story and accessory use structures in connection therewith.” Fla. Stat. § 489.105(3)(c).
With the forgoing in mind, “[a]ny person who desires to engage in contracting on a statewide basis shall, as a prerequisite thereto, establish his or her competency and qualifications to be certified ….” Fla. Stat. § 489.113(1). “To establish competency, a person shall pass the appropriate examination ….” Id. “Any person who desires to engage in contracting on other than a statewide basis shall, as a prerequisite thereto, be registered … unless exempted by this part.” Id. (emphasis added). “A person must be certified or registered in order to engage in the business of contracting in this state.” Id. at (2). In other words, no person shall “[e]ngage in the business or act in the capacity of a contractor … without being duly registered or certified.” Fla. Stat. § 489.127(1)(f). A certified contractor may work anywhere in the State of Florida and must be recognized by all local jurisdictions. See https://www.broward.org/Building/Contractors/Pages/KnowTheLaw.aspx. A registered contractor may work only in the local geographic area that issued the license. Id.
“As a matter of public policy, contracts entered into … by an unlicensed contractor shall be unenforceable in law or in equity by the unlicensed contractor.” Fla. Stat. § 489.128(1) (emphasis added). “[I]f a contract is rendered unenforceable under this section, no lien or bond claim shall exist in favor of the unlicensed contractor for any labor, services, or materials provided under the contract ….” Id. at (2). The Florida Supreme Court has observed that in order “to avoid the draconian effects of the statute, the unlicensed contractor need only comply with the law.” Earth Trades v. T&G Corp., 108 So. 3d 580, 586-87 (Fla. 2013).
“[A] person or business organization operating on an inactive or suspended certificate or registration … is considered unlicensed.” Fla. Stat. § 489.127(1)(f). “[A]n individual is unlicensed if the individual does not have a license required … concerning the scope of the work to be performed under the contract.” Fla. Stat. § 489.128(1)(a). “A business organization is unlicensed if the business organization does not have a primary or secondary qualifying agent … concerning the scope of the work to be performed under the contract.” Id. Importantly, “if a state license is not required for the scope of work to be performed under the contract, the individual performing that work is not considered unlicensed.” Id. (emphasis added).
Licensed contractors are regulated by the Department of Business and Professional Regulation (“DBPR”). According to the DBPR, “[a] Contractor is someone who demolishes, subtracts from, builds or improves any building or structure for compensation.” See http://www.myfloridalicense.com/dbpr/services-requiring-a-dbpr-license. “Essentially, if you pay someone to construct a building or a structure, make structural alterations to load bearing walls, or perform services such as plumbing or air conditioning work, that person has to have a state contractors’ license.” Id. The DBPR’s website provides examples of services that would and would not require hiring a licensed contractor. Id. As it pertains to this matter, a license would be required to “[r]emodel a home that requires alteration or replacement of a load-bearing wall for compensation.” Id. However a license would not be required to “[p]aint; install cabinets, wood or tile flooring, and insulation regardless of compensation.” Id.
Finally, construction jobs typically require a permit issued by the county and/or municipality where the property is located. Sea Ranch Lakes is in Broward County. A permit is required for a wide variety of construction, remodeling, and repair work in Broward County. See https://www.broward.org/Building/BuildingPermits/Pages/BuildingPermits.aspx. “If work is performed without first obtaining a permit, the building owner will be responsible for paying a fine.” Id. “In addition, the building owner may be required to pay for the approval of the work by a professional engineer or pay to have it dismantled, demolished and/or redone.” Id.
Moreover, hiring an unlicensed contractors violates Florida Building Code requirements. See https://www.broward.org/Building/Contractors/Pages/UnlicensedContractors.aspx. “In order to apply for a building permit from any building department in Broward County, a contractor must have a valid license.” Id. (emphasis added). “Unlicensed contractors can’t apply for a building permit therefore their construction work cannot be reviewed or inspected.” Id. (emphasis added). “Failing to get required permits will result in jobs being performed without inspections.” Id.