Chapter 2 Licensing BCN 4772 Summer 2007

Licensing Licensing allows the government to regulate industries –To protect the public –Establish standards of practice Department of Business and Professional Regulation (DBPR) Professional Boards

Licensing Chapter 489, Florida Statutes –Construction Contracting –Electrical and alarm system contracting –Septic tank contracting

Licensing State Contractor Certification –Who Anyone who conducts contracting business for compensation –Some Exemptions 2-6, 2-7 Highway, street, road, bridge and rail Employees of licensed contractor Federal, state, local government employees making repairs Court appointed officers Public utilities

Licensing Subcontracting requirements –Required for Electrical, mechanical, plumbing, roofing, sheet metal, swimming pool, ands air conditioning If not exempt Unless contractor is licensed in this area Exemptions –Roof on own construction –Structural swimming pool work, main sanitary sewer collection system, continuation of utility lines from main on mobile home park, and other work done by general contractor within their scope

Licensing Employee or Sub? –Employee Receives compensation from Under supervision and control of An employer that deducts taxes And provides workers comp coverage

Licensing Employee –If worker is required to comply with directions –If owner trains worker –If owner must render services –Hiring, supervising & paying worker assistants –Continuing relationship –If set hours are established –If worker required to devote full time –If work performed on owner’s premises –Work is in specific sequence –Oral or written reports required –Payment based on hourly, weekly, or monthly –Payment of travel expenses –Furnishing of tools and materials –Right to discharge –Employee right to terminate with no liability

Licensing Ways to avoid Subcontractors being treated as employees –Written agreement –Avoid setting hours, days or weeks –Sub will hire and pay all help –Tools are provided by Sub –Compensation based on work preformed –Do not provide office space –Sub is responsible for worker training –Advise Sub in writing to provide own insurance –All costs should be build into the contract costs –Clarify that worker cannot be fired or quit until contract is complete –Never give Sub other work during down time –Never pay bonuses to sub

Licensing Unlicensed activity –Any contract entered into by an unlicensed contractor is unenforceable –Posing as a licensed contractor is a first degree misdemeanor Second offense is a third degree felony –Damage awards are three times if contractor is unlicensed

Licensing Licensing requirements –Registered Contractor Registered with DBPR Fulfilled competency requirements of jurisdiction –City –County –State –Certified Contractor Detailed Application to DBPR Pass a state exam Certificate of competency –issued by DBPR –Allows activity throughout the whole state

Licensing Requirements of Certified Construction Contractor 18 years old Good moral Character Meet one of four requirements –Four-year degree, one year experience –Four years of active experience as apprentice or one year as foreman –Combo of education and experience = four years –Have significant period of proven experience as an active certified contractor

Licensing Public Liability Insurance –Need proof for initial license or to renew –Signed affidavit –Min requirements Different for different areas of construction No exemption

Licensing Workers Compensation Coverage –Certificate of registration –Can obtain exemption

Licensing Term of license –Two years Continuing Education –14 hours –3 hours dedicated to Workers comp, business practices and workplace safety –Proof must be submitted with application