Understanding Florida Specialty Contractor Licenses: The Essential Guide
What is the Definition of a Specialty Contractor License in the State of Florida?
What is a Specialty Contractor License in Florida?
In the context of the Florida construction industry, a specialty contractor license is a type of license that allows contractors to engage in work on specific areas or components of construction projects. What differentiates a specialty contractor from a licensed general contractor, is the specialty contractor’s limitation to work that falls within their category of expertise and licensure.
One of the most stringent components of licensure as a contractor in Florida, is the requirement to obtain a qualifying or exemption from the licensure requirements on the basis of the limited scope of permitted work. The licensing requirement and its exceptions are laid out in Florida Statute 489. The most relevant exception for specialty contractors is the exception for work whose estimated cost is less than $500 for labor, material, and overhead (if any). For work whose cost exceeds that ceiling, however, licensure as a specialty contractor is required.
There are different classes and types of licenses for specialty contractors . While general contractors obtain a license allowing them to perform work in unlimited areas of construction, specialty contractors must apply for licenses in each area of specialty. So this means that, one contractor for example, may obtain licensure as a specialty electrical contractor, general plumbing contractor, and fire protection contractor. This differentiates them from a licensed state certified general contractor, who possesses a license permitting them to work in any area of construction as long as it does not require an exception from the licensing laws.
The importance of licensure as a specialty contractor lies in the ability to submit bids for contracts, enter agreements for work, and lien construction sites where you lack the appropriate license. When a contractor submits a bid for work, they certify that they are properly licensed and exempted from all local and state licensing requirements. In order to be able to enforce any agreement you have with the owner or general contractor, your business must be properly licensed as a specialty contractor, or exempt from licensure.
Various Types of Specialty Contractor Licenses
Specialty contractor licenses are specific classifications of contractor licensing in Florida which allow contractors to pursue projects in specialized construction trade areas. These licenses are distinctly different from general contractor licenses, and are typically restricted to the work which is specifically authorized under the license. Contractors who would like to operate in a general contracting capacity have those options as well, but they must be obtained through a separate classification. Many construction professionals choose to seek specialty contractor licenses for their own convenience, or because it can open the doors to a wider array of opportunities for qualified construction professionals.
The Florida Construction Licensing Board issues six types of specialty contractor licenses which include:
Roofing Contractors – A roofer specializes in the work of installing roofing materials. There are several types of roofing classifications – such as tile roofing, slate roofing, metal roofing, and flat roofing – among others, and each requires a roofing contractor’s license, even when the forms of roofing itself are different. Roofers typically perform work at the initial stages of a project and at the end, however, roofers also sometimes perform extra work involving insulation, ventilation, and air conditioning.
Plumbing Contractors – A plumber installs and repairs plumbing fixtures, pipes, and related components. A plumbing contractor’s license is required in order to perform plumbing work, but there are variations on license types for different classifications. Subcontractors may also be required to meet licensure guidelines for the particular type of work they are hired to perform – such as drain cleaning, plumbing work involving a swimming pool, or medical gas piping in hospitals.
Electrical Contractors – Electricians install, repair, and upgrade all kinds of electrical circuitry. Again, there are various classifications of electrical contractor services, such as low-voltage, alarm, and limited-energy systems (which you may hear referred to as "limit systems"). Because of the far-reaching risks and responsibilities associated with the work involved, a variety of electrical contractor licenses are available.
Sheet Metal Contractors – A sheet metal contractor works with metal products such as roofs, gutters, ducts, and piping. There are several classification types of sheet metal contractors which authorizes the contractor to perform different types of work. Sheet metal work frequently includes, but is not limited to HVAC ventilation systems and stovepipe, chimney, and ductwork installations.
Air Conditioning Contractors – Air conditioning contractors fabricate, install, or repair environments that must be temperature and humidity controlled. The work involved in an air conditioning project can be systematic, and typically involves building enclosures from various materials, or creating enclosures in existing structures using available materials. In addition, air conditioning contractors usually perform ductwork work, heating work, and other types of work incidental to the installation or repair of air conditioning systems.
Mason Contractors – A mason contractor builds concrete blocks, bricks, stonework, and other types of materials. A mason contractor’s license classifies the contractor as a commercial or residential mason, or a general masonry contractor who is authorized to perform either type of masonry work.
Eligibility and Qualifications Required to Obtain a Specialty Contractor License
To be eligible for the required state certification examinations, Florida’s specialty contractors must meet age, experience, and educational requirements set by the Construction Industry Licensing Board (CILB).
Age: applicants for a specialty contractor license in Florida must be at least 18 years old. A birth certificate or a valid driver’s license may be requested as proof of age.
Experience: Florida’s plumbing contractors are required to be able to demonstrate a minimum of four (4) years of experience in the field of plumbing, with at least one (1) year of this experience being supervisory. Two (2) of these years of supervisory experience must be at the level of a foreman or project manager.
Credit for education, such as a four-year degree in a related field, may equal up to one (1) of the required four (4) years of experience.
Florida’s permitted plumbing contractors must also show credit for a minimum of 150 clock hours of approved courses and education in the following areas: Florida building codes and laws, the use of permitted plumbing materials and techniques of installation, supervisory training, and business financial management.
Procedure to Apply for a Florida Specialty Contractor License
Before a Florida specialty contractor can legally work in the state, he or she must submit a Licensure Application to the Florida Department of Business and Professional Regulation. This process involves the completion of several necessary steps, as well as the submission of multiple documents and fees. In order to obtain a Florida specialty contractor license, an applicant must: Once the necessary forms have been submitted, Florida specialty contractors will be required to take a three-part competency exam that tests the applicant’s business and finance knowledge. This is a closed book test and applicants are advised to bring calculators; however, those who pass must wait three years before retaking the exam. Florida specialty contractors can choose to offer construction services under a registered business name or an incorporated name. Those who choose the incorporated option must first file Articles of Incorporation with the Department of State’s Division of Corporations and hand over a $35 fee. If the Florida specialty contractor is self-employed, a fictitious name registration will need to be filed. The Department of State’s Division of Corporations also requires a $50 fee to register a fictitious business name. Applicants should not forget to register any fictitious name that they may decide to use, as failure to do so could result in a variety of penalties including denial of a Florida specialty contractor license. Applications for Florida specialty contractors can be downloaded from the Florida DBPR website. Once completed, the application for a Florida specialty contractor license is then submitted with a Certifying Statement, which can also be obtained from the Florida DBPR website. In addition to the above-mentioned documents and fees, applicants for a Florida specialty contractor license will need to pay an application fee of $100, a delinquency fee for unlicensed activity, any required formal evaluation fees or fees required by the Florida DBPR as applicable to the individual applicant or their business, and a $15 cost of processing fee. Applicants who are interested in becoming electrical and alarm system contractors must pay an additional $25 fee that is used to maintain the Electrical Contractors’ Trust Fund.
Resources and Study Material for Exam Preparation
For some applicants, the application process also includes passing a licensing exam, which is overseen by the Florida Department of Business and Professional Regulation (DBPR) Construction Industry Licensing Board. To this end, Florida DBPR is working in conjunction with Pearson VUE, Inc. and includes four separate examinations: the Business and Finance exam, the Advanced Work exam, the General Building exam, and the Residential exam.
Depending on your specialty license requirement, you may be required to pass one of these exams prior to receiving your license. The business and finance exam includes 50 multiple choice questions, while the advanced work, general building, and residential exams include 80 questions each. The exams are scored as pass/fail, and a score of 70% is necessary to successfully pass the exam and receive a passing score.
Although not required, many applicants complete an exam preparation course. There are four primary types of exam preparation courses: Practice exams are available to test-takers only, and each practice exam may only be used once . Practice exams are good because they closely track the format, phrasing, and types of questions on the actual exam. However, practice exams can be pricey, and simply re-reading the exam preparation course materials may be enough.
Some standardized training programs for specialty contractor licenses are offered by the Florida Construction Industry Licensing Board in cooperation with the University of Florida. These educational programs are well regarded because they provide a comprehensive overview of all the coursework and study material you will need to know to successfully complete your exam and obtain your license.
Alternatively, other training programs are available from online providers, such as Construction Exam Courses, Florida Construction Exam Professionals, and Florida Contractor School. Make sure to review your options carefully as the courses can be costly, and you do not want to waste $300 or more on a program that does not meet your specific needs.
Maintaining and Renewing a Florida Specialty Contractor License
Once obtained, a Florida specialty contractor license remains active for either two or four years depending on the specific license. For most of the non-licensure or municipal licensure requirements, the Department of Business and Professional Regulation (DBPR) will notify the licensee of the upcoming license expiration date, along with the process to renew the license for the next licensing period approximately a few months in advance. For the Florida DBPR issued specialty contractor licenses, the licensee must ensure the continuing education, examination, and application fees are all submitted prior to the license renewal date. To renew a Florida specialty contractor license prior to expiration, the following items must be completed: Once the above items are completed, the license will be in an "active" status for the next two or four (depending on the license type) years. It is important to keep in mind, when submitting any documents to the DBPR or other Florida state or local agency, always include a letter describing what is being submitted. This may seem tedious, but this simple step can and has saved applicants time and money in the past by clarifying or eliminating any apparent confusion for the agency. It is also important to ensure all items submitted to the agency comply with the requirements outlined in the DBPR Application and Examination Principles and Guidelines and to maintain a copy of any documents submitted and received. Renewal of specialty contractor licenses requires a licensee to maintain active status for an indefinite period of time. If any licensee fails to renew his/her specialty contractor license before the expiration date, then Florida Administrative Code allows expired licenses to be reinstated without a fine or penalty within thirty (30) days after expiration. After thirty (30) days, a fine of $100 is required to reinstate any expired license. After two (2) years, an applicant must re-apply as a new applicant, pay the applicable application fee, fulfill any work experience requirements/letters of recommendation, and fulfill any community service requirements to obtain the reinstatement of the license. Additionally, prior to renewing its license, the licensee may elect to participate in one of the following voluntary programs: It is important to always keep the license status active to ensure the licensee’s ability to immediately continue work on existing projects, and to not incur any delays due to lapse of licensing status. Potential delays to a licensee’s ability to lawfully work, also creates potential issues with clients and future clients.
Advantages of Being a Licensed Specialty Contractor
The clear and quantifiable benefits of holding a specialty contractor license in Florida should convince anyone who is currently operating without one to immediately apply with the Florida Department of Business & Professional Regulation for licensure. The first and primary reason for obtaining a specialty contractor license is the availability of work that requires the licensure. Many jobs, including recurring work, are only available to those who have a specialty license. As a result, those with a specialty contractor license have an advantage when it comes to job opportunities and longer career stability. Moreover, obtaining a specialty contractor license can provide you with an advantage over other contractors who do not hold one. For example, by demonstrating that you are specially trained, licensed, and credentialed under Florida law, you can completely separate yourself from unlicensed contractors. Consumers also prefer hiring specialty contractors because it gives them peace of mind that the contractor they are hiring is trained, licensed, and experienced in their chosen field. Obtaining a specialty contractor license can also protect you under the law in the event that a customer is unhappy with your work or if you are sued for damages. The fact is that Florida law does not provide for recovery of damages against unlicensed contractors. Therefore, if you want to protect your company from an invalid judgment against you, move forward with obtaining a specialty contractor license as soon as possible.
Common Obstacles and Their Solutions
Common challenges and how to overcome them.
The complexities of the application process, the breadth and depth of examinations, recurring financial disclosures, and regulatory compliance can keep specialty contractors up at night. And in an industry already facing a shortage of skilled workers, maybe even losing a few nights sleep will dissuade potential applicants from completing their specialized education and training. The most common challenges, and ways to tackle them include:
The Division of Professions is tasked with taking in applications and determining if an applicant is fit to hold a license. This means a complete review of the application, education, exam scores, and work experience are necessary. Oftentimes, this means the department will ask for additional documents over the course of many weeks or months. The answer is to be patient and diligent in your response.
Crossing each hurdle of the application process will take time . The primary cause of lengthy application processing time is waiting for transcripts to be sent. In such a competitive industry, however, it’s important to be sure you have all the documentation necessary for approval. The best approach is to start early.
In addition to licensing and financial strength requirements, applicants must also prove that they are capable of performing their job responsibilities in a professional manner. Managers, business owners, and even employees can all be subject to disciplinary action. The best strategy to avoid issues with the Department of Business and Professional Regulation, the Board of Professional Engineers, or the Construction Industry Licensing Board is to familiarize yourself with Florida laws regarding construction contract law and licensing, and to develop a plan of action to obtain the training a licensee needs. We don’t have enough skilled workers in this industry, so we cannot afford to lose any more!