The Definitive Guide to Florida Contractor License Renewal

The Ins and Outs of Florida Contractor License Renewal

Renewing a Florida contractor license is a key component of remaining an active contractor in the State of Florida. In Florida, all contractors must renew their license through either the Department of Business and Professional Regulation (DBPR) or through the county in which the contractor is registered. All licenses are renewed every two years, with some exceptions. Florida law provides for special circumstances under which contractors may have their license renewed for a period of up to four years. In order to be eligible for an extension, the contractor must obtain approval from the Board by submitting the appropriate application and fee.
Due to the statutory requirement that contractors’ licenses be renewed every two years, licensees must ensure that they are aware of the license renewal date and plan accordingly to ensure that they are able to timely renew their license . Florida statutes and rules provide for the following regarding license renewal: (1) the license period; (2) the contractor’s responsibilities prior to the expiration of the license; (3) the expiration date of the license; (4) the continuing education requirements for license renewal; (5) the very limited scope in which an expired license may be used to perform construction prior to the license renewal; (6) the restrictions on taking the contractor examination after the license has expired; and (7) the fines and penalties associated with failing to renew a contractor license.
Understanding these requirements is essential to avoid a lapse in licensure and possible fines and penalties. Failure to renew a license on time will result in the license automatically becoming inactivated and void, at which point the contractor must cease all construction activities and take the necessary actions to reinstate his or her license including, but not limited to: obtaining a reinstatement application, remitting the appropriate fee, and completing any required continuing education. Failure to do so may result in action being taken against the contractor’s license and the contractor being precluded from licensure in the future.

The Florida Contractor License Renewal Process

The renewal process for a Florida contractor license is relatively straightforward but requires careful attention to detail and timing. Here is a step-by-step overview:

• – Registration. About 60 days prior to your license expiration date, the Florida Department of Business and Professional Regulation (DBPR) will send you an email prompt to register for the renewal process online. (Unlike initial license applications, contractors are not required to renew through a licensed Florida contractor administrator.)
• – Accurate Disclosure. Log in to MyFloridaLicense.com. Read your license records notice carefully. Ensure that any information that could be used against you has been reported, including criminal matters, child support arrearages (if applicable), and any insolvencies, bankruptcies or financial difficulties.
• – Discovery Matters. Addendum X is a standard part of most Florida license applications…and, in our experience, most licensees merely sign where indicated. However, Addendum X is a discovery tool, and to some extent is also a trap for the unwary. We have found that the Florida DBPR will often ask for documents after an application is submitted that "should" have been disclosed on Addendum X. It is our advice to plan ahead and gather the required documentation (including police or other reports) well before your renewal date, so that it is not an issue after submission.
• – Proof of Continuing Education. While this is typically not a problem, the DBPR requires proof that certain educational requirements have been met. These documents must be submitted with the renewal application directly to the Florida DBPR – do not depend on the school and/or instructors to do this for you.
• – Insurance and Bonding. All contractors must have and furnish evidence of having the required insurance bond and, depending on your license type, general liability and workers’ compensation insurance. Therefore, contractors should ensure that such letters are sent to the Florida DBPR in a timely manner.
• – Payment. The contractor has to pay all outstanding fees and liens, including tax liens. Payments can be made online.

The contractor should renew his/her license in plenty of time prior to the expiration date, as the DBPR’s review can take eight (8) weeks or longer, depending on the completeness of the submission and whether third-parties need to be contacted (such as for criminal matters or the status of child support payments). Failure to renew the license prior to its expiry could have significant and life-long negative economic consequences.

Common Licensing Renewal Pitfalls

The license renewal process can be fraught with challenges. Failure to prepare properly by keeping impeccable records, not watching for criminal or disciplinary action that may require an administrative response, failing to stay current on legal developments (such as the impact of the CPRA on those working under owner-builder arrangements), falls squarely into this set of problems. When confronted with financing law issues, contractors also need to understand how these issues overlap with the unfair and deceptive trade practices act or fraud or unjust enrichment claims. A failure to avoid even technical errors regarding DBPR requirements for record keeping and reporting may open the door to a PERC complaint or a potential disciplinary action. Potentially the most important issue for contractors seeking license renewal is the treatment of criminal history. A failure to disclose criminal history when applying for renewal can have harsh impact. Even where the applicant successfully completed a deferred adjudication, the impact of the failure to disclose may result in a license being denied. Contractors also must be aware that the type of activity that may disqualify them from licensure may not be limited to criminal activity. DBPR has taken a very strict approach to non-disclosure of other disciplinary actions. For example, an applicant for license renewal needs to be mindful that a failure to disclose disciplinary actions in California could be the basis for a denial of license renewal in Florida.

Continuing Education for Florida Contractors

To maintain an active license in Florida, contractors must fulfill specific continuing education (CE) requirements. The rules vary by license type, but for those who hold a Florida contractor license, the current CE requirement is 14 hours every two years. Seven hours must focus on technical, business or legal safety issues, while the remaining seven hours can be in any area for licensing purposes. As with the license exam senior and intermediate exams, these credentials should be listed on the application, however, the CILB will not approve any continuing education that appears to be unrelated to construction. From time to time, the Florida Department of Business and Professional Regulation will announce approved courses to complete these requirements, so check their website regularly, as you do not have to take just any course. Courses must be taken through a licensed provider, and the course provider will provide proof of completion of the required course to the Department of Business and Professional Regulation after you take the course. The following entities are approved to offer continuing education courses: Any of these organizations may be a good source for finding an approved course so that you can meet the CE requirements and keep your license active.

Important Dates and Penalties

As a commercial contractor in the State of Florida, you need to be aware of the renewal deadlines for their license. For new licensees, you must renew your license 12 months from the date you were issued your license. As a renewal licensee, you must renew your license 24 months from the date of the last renewal however, you have a 30-day grace period from the expiration date of the license in which to pay a $25.00 late fee (Section 481.2035(4)(a)).
If you have not renewed your license within the 30-day grace period, you can once again pay a $25.00 late fee and submit an application to reinstate the license and obtain a current certificate. (Section 481.2035(6)(a)). If you allow your license to become invalid and you continue to use it, you are committing a first-degree misdemeanor (Section 455.227(1)(c)) .
Similarly, if you were to allow your license to expire and your renew it within the first 2 years of its expiration, you may be required to pay a $25 late fee as well and take all 15 hours of continuing education (30 hours for inactive licenses), unless you meet the Exemption Requirements for Continuing Education Requirement Section 489.115(2).
A Certificate of Competency lapses if the renewal fee is not received by the Board on or before the expiration date. A Certificate of Competency may be reinstated within 12 months of becoming inactive by paying the annual renewal fee for the lapsed year plus a late fee. A Certificate of Competency may be reinstated after 12 months, but within 24 months after the date of lapse, by paying the reinstatement fee and meeting the current education requirements for licensure.

Renew Online: Tips and Tricks for Florida Contractors

Online renewal can simplify the contractor license renewal process even further. Focusing on these 10 tips will help to make the process efficient, accurate, and painless.

1. Use a Reliable Internet Connection

A reliable, high-speed internet connection is necessary to ensure that you are able to complete your contractor license renewal in a timely and productive manner. A strong internet connection also helps to protect against technical difficulties that could lead to problems completing the application, which could lead to delays.

2. Set a Schedule for Your Professional License Renewal

A schedule for your contractor license renewal application submission will state when applications are due based on location. Setting a schedule will help you better manage your time and avoid forgetting to apply for your renewal in advance.

3. Set Aside Time to Go Through the Process

Attempting to renew a Florida contractor license need not take a long time. However, it will take more than just a few minutes. Setting aside time to complete your application is essential to make sure that the application can be filled out quickly and accurately.

4. Pay Special Attention to the Financial Information Page

As you fill out your application, constantly review the requirements for your financial information page. Make sure that all of your information is accurate. Review to see if you need to submit additional financial information. The financial information page is also a common integral part of the application that can result in a license loss if it is not filled out accurately and sent to the Board.

Florida Contractor License Board Updates

The most recent information is that the Florida Board of Construction and Contracting has reduced the hours required for continued education from a minimum of 14 hours to a minimum of 12 hours. They also indicated that the law change that would allow a general contractor to apply for either a commercial or residential license, irrespective of their experience , has not been passed and will not be considered until 2020. This is not entirely unfortunate because many people have worked to upgrade their licenses through continuing education courses. If this law were passed, many general contractors would instantly be licensed as residential contractors and thus reduce the value of continuing education and in essence make it more difficult for commercial contractors to maintain the qualification level of their license.