Chapter 2 Licensing

1. Chapter 2 Licensing BCN 4772 Summer 2007

2. 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

3. Licensing • Chapter 489, Florida Statutes • Construction Contracting • Electrical and alarm system contracting • Septic tank contracting

4. 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

5. 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

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

7. 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

8. 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

9. 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

10. 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

11. 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

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

13. Licensing • Workers Compensation Coverage • Certificate of registration • Can obtain exemption

14. 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