In Florida’s booming construction market, being a contractor means more than just having a good crew and a strong work ethic. Whether you are a general contractor, subcontractor, or specialty tradesperson, understanding the state’s licensing requirements and liability rules is essential to protecting your business, avoiding fines, and staying competitive.
What Licenses Do Contractors Need in Florida?
Florida law requires most contractors who perform work exceeding $2,500 in value to be licensed through the Florida Department of Business and Professional Regulation (DBPR). There are two types of contractor licenses in Florida:
- Certified License: Allows you to work anywhere in the state.
- Registered License: Limits your work to specific local jurisdictions where you’ve met local competency requirements.
There are also different license classifications for general contractors, building contractors, and residential contractors, as well as for specialty trades like roofing, HVAC, plumbing, and electrical work.
Failing to obtain or maintain proper licensure can lead to civil penalties, stop-work orders, and even criminal charges in some cases. It can also prevent you from enforcing contracts or suing clients for unpaid work.
Unlicensed Contracting Carries Heavy Penalties
Florida is particularly strict on unlicensed contracting. Performing work without a proper license is considered a first-degree misdemeanor for a first offense and a third-degree felony for repeat violations. Penalties may include:
- Fines
- Restitution to the consumer
- Jail time for criminal convictions
- Permanent damage to your business reputation
In addition, unlicensed contractors cannot file a construction lien or recover payment through the courts—even if the work was done correctly. Simply put, working without a license puts your business and livelihood at serious risk.
Contractor Liability in Florida
Even licensed contractors are not exempt from liability. In Florida, contractors can be held legally accountable for:
- Construction defects
- Property damage
- Worksite injuries
- Building code violations
- Breach of contract
However, the extent of the liability will often depend on the contract, the quality of the work, and how clearly responsibilities are assigned between the parties involved.
For instance, if a subcontractor fails to complete work properly and the general contractor does not supervise or correct the issue, both parties could potentially be held liable. Florida’s modified comparative fault rule may also apply in cases involving injuries or negligence, which means liability can be shared based on each party’s percentage of fault. However, an injured party cannot recover damages if found to be more than 50% at fault.
Importance of Contracts and Insurance
One of the most effective methods to reduce liability is using clear, enforceable contracts. Every task—regardless of its size—should have a written agreement that defines:
- The scope of work
- Payment terms
- Timelines
- Warranty information
- Dispute resolution procedures
Moreover, it is critical to have the proper insurance coverage. This should encompass general liability insurance, workers’ compensation (if you employ workers), and potentially builder’s risk or professional liability insurance, depending on the nature of the work performed.
When To Seek Legal Guidance
Whether you’re just starting out or have years of experience in the industry, construction law is complicated and constantly evolving. A small oversight in licensing or contract terms can lead to significant legal and financial problems.
At St. Johns Law Group, we help contractors across Florida understand their legal responsibilities and build strong foundations for their businesses. From license compliance to contract drafting to defending against liability claims, we’re here to protect what you’ve worked hard to build.
Contact St. Johns Law Group To Learn More
If you are a Florida contractor and have questions about your licensing, liability, or contracts, contact St. Johns Law Group today. Our legal team can review your questions, help you stay compliant, avoid costly mistakes, and safeguard your business for the long haul.