The Unlicensed Contractor Program

In 1990, the Broward Board of County Commissioners approved the initiation of a countywide Unlicensed Contractor Program to mitigate problems associated with the construction work of unlicensed contractors in Broward County. In brief, the Unlicensed Contractor Program states that any construction work performed in Broward County must be completed by a licensed contractor who has an up-to-date Broward County Certificate of Competency (License) or a State of Florida license. The Hazards of Unlicensed Contractors

There are many concerns with the use of unlicensed contractors which ultimately affect the consumer. The hiring of an unlicensed contractor is the direct responsibility of the consumer; thus the consumer is accountable for all outcomes associated with the contractor’s work. The use of an unlicensed contractor often leads to unsafe and hazardous construction and additional cost to the consumer.

New Information as of 1/22/07 OUTREACH PROGRAM - how your organization or group can learn more. The most effective ways to reduce the number of people who fall victim to construction related fraud each year is to educate the consumer and to enlist the aid of the public and industry in exposing and prosecuting the scam artists.  For this reason, the Broward County Contractor Licensing and Enforcement Investigations Unit is expanding its "Outreach Programs" beyond printed material. This new program will allow interested organizations, businesses, civic or neighborhood groups, an opportunity to request that a speaker from our office appear as a guest speaker at group meetings. Requests will be considered on a first come, first serve basis, and due to the available manpower restrictions, a minimum expected attendance of twenty-five persons is required. To request a program please call the Outreach Coordinator at (954) 765-4400, and have the following information available: Name of the group or organization requesting the speaker Date, time and location of the meeting or event Anticipated number in attendance Requested topic of discussion Name and daytime phone number of contact person for the event

The use of an unlicensed contractor may yield the following problems:

Inability to receive inspections from the Broward County Permitting, Licensing and Consumer Protection Division or City Building Department In order to apply for a building permit from any building department in Broward County, a contractor must have a valid license. Failure to obtain required permits will result in jobs being per formed without inspections. Such unauthorized construction leaves the consumer with no assurance as to whether the construction work was performed correctly and is safe.

Failure to meet Florida Building Code standards Unlicensed contractors are unable to apply for a building permit therefore their construction work cannot be reviewed or inspected. This eliminates the opportunity to ensure that the work meets Florida Building Code (FBC) requirements. Failure to meet the FBC requirements may result in unsafe and hazardous conditions.

Substandard Workmanship since unlicensed contractors do not go through the process of obtaining a license, they are not aware of required construction standards understood by licensed contractors. This leads to shoddy and substandard workmanship.

Review of construction plans and inspections by building departments in Broward County ensures that work has been performed correctly and meets the standards of the Florida Building Code (FBC), Broward Edition.

Further cost to the consumer The work of unlicensed contractors is often substandard and ultimately leads to costly repairs and corrections that require the services of a licensed contractor. Thus the consumer may pay more money for the job than if they had initially hired a licensed contractor.

Fraud and exploitation of consumers by unlicensed contractors The continued hiring of unlicensed contractors encourages ”roving”, unlicensed contractors who are involved in illicit construction practices. These contractors embark on work throughout the County, often taking money for jobs that are never started, not completed, or are poorly constructed. Ultimately the consumer pays the additional expense for such activities.

Consumer liability for damages and injuries on the job site The consumer is responsible for the hiring of an unlicensed contractor. Consequently, the consumer is responsible for any damages and injuries incurred on the job site since unlicensed contractors often do not have general liability and workers compensation insurance.

Legal action against the consumer Since the consumer is responsible for the hiring of unlicensed contractors, they run the risk of being involved in legal action. This legal action may involve lawsuits from various parties due to the unauthorized construction work, thus incurring further cost on the consumer.

Code enforcement fines The hiring of unlicensed contractors violates Florida Building Code requirements. This may subject the consumer to fines and the possibility of facing a quasijudicial hearing in front of a Hearing Officer.

Warning Signs Alerting You To Unlicensed Contractors

Often the consumer is not aware which contractors are licensed and which are not. There are various warning signs that should alert a consumer to an unlicensed contractor. Some common warning signs include the following:

A large down payment requested before work begins Unlicensed contractors may request a large down payment before work begins. Payments should only be for a part of the work. In order to be licensed, contractors must demonstrate sufficient financial ability to perform the type of work for which the license is specified.

Many requests for money during early phases of construction The contractor must demonstrate adequate financial ability to obtain a license.

You are asked to obtain the building permit A licensed contractor who is in good standing will always obtain the permit. If you obtain the building permit, you will be held responsible for complying with the Florida Building Code and can be held responsible for workers injured on the job.

The contractor is not willing to put all terms in writing and offers only a verbal contract This is always a sign of trouble. An unlicensed contractor may not provide a written contract to guarantee work that must be completed.

The contractor does not have proof of insurance Licensed contractors must have general liability, property damage and workers’ compensation insurance in effect at all times.

You are informed that the job does not require a building permit Check with your local building official. Almost all projects, with few exceptions, require a building permit.

The contractor is only willing to work on weekends and evenings This is often a sign that the person is an employee who is moonlighting without a license. Licensed contractors are full-time professionals.

Someone other than the person or company contracting to do the construction work obtains the building permit

A licensed contractor who is in good standing will always obtain the building permit.

Contractor only displays an occupational license in order to lawfully engage in contracting, a contractor must be certified by the State of Florida or the Broward County Contractor Licensing and Enforcement. An occupational license is not sufficient to secure a building permit.

You are asked to make your check payable to an individual instead of a company name, you are asked to make a payment in cash, or you are asked to make the check payable to ”cash” Licensed contractors will almost always have a separate business account.

The absence of a license number in newspaper advertisements, business cards, or yellow page advertisements Licensed contractors are required to include their Certificate of Competency license number in all advertising including on vehicles used to perform work.

Consumer Protection

The best safeguard against faulty and hazardous construction work is to make sure the contractor you hire has a valid contractors license from either the Broward County Contractor Licensing and Enforcement or the State Department of Business and Professional Regulation. By using licensed contractors you can save yourself time, worry, money, and even injury. You can assist in helping to prevent these problems for yourself and others by reporting unlicensed Contracts performed by unlicensed contractors unenforceable. — As a matter of public policy, Florida Statutes dictate that an unlicensed contractor who enters into a contract for construction on or after October 1, 1990, will be unable to enforce the contract, in law or equity, and thus, unable to maintain an action for breach of contract. Fla. Stat. §489.128(1)(2004). In Deep South Systems, Inc. v. Heath, 843 So. 2d 378 (Fla. 2d DCA 2003), an unlicensed sub-subcontractor brought an action to recover its final payment due for work on a series of contracts. The trial court entered judgment on behalf of the unlicensed sub-subcontractor but the Court of Appeals reversed, holding the terms of the contract unenforceable by the sub-subcontractor since it was unlicensed. Prior to 2000, §489.128 contained the following sentence: "(In the event the contractor obtains or reinstates his or her license, the provisions of this section shall no longer apply.)" Accordingly, since 2000, contractors can no longer correct a license defect and avoid the repercussions contained in §489.128 by subsequently obtaining the necessary license(s). The Florida Legislature's removal of the cure language in §489.128 effectively means that the ability to cure a license defect is no longer available. 

Furthermore, before hiring a contractor to perform construction work it would be wise to do the following:

Verify if the contractor has a valid State of Florida license by contacting the Department of Business and Professional Regulation at 954-917-1330 or 904-727-6530.

Verify if the contractor has a current Broward County Certificate of Competency and can perform the specified work by contacting the Broward County Contractor and Licensing Enforcement at 954-765-4400. If you have any further questions concerning unlicensed contractors you may contact the Broward County Permitting, Licensing and Consumer Protection Division, Contractor Licensing and Enforcement Section at 954-765-4400.

HOW TO FILE A COMPLAINT AGAINST AN UNLICENSED CONTRACTOR

Contact Us Regarding Contractor Issues
File A Complaint Against a Licensed or Unlicensed Contractor -- pdf
 Formulario Para Queja Contra Contratistas Sin o Con Licensia -- pdf
Chapter 9 Contractors

Florida Law

Florida Statutes dictate that an unlicensed contractor who enters into a contract for construction on or after October 1, 1990, will be unable to enforce the contract, in law or equity, and thus, unable to maintain an action for breach of contract. Fla. Stat. §489.128(1)(2004). In Deep South Systems, Inc. v. Heath, 843 So. 2d 378 (Fla. 2d DCA 2003), an unlicensed sub-subcontractor brought an action to recover its final payment due for work on a series of contracts. The trial court entered judgment on behalf of the unlicensed sub-subcontractor but the Court of Appeals reversed, holding the terms of the contract unenforceable by the sub-subcontractor since it was unlicensed. Prior to 2000, §489.128 contained the following sentence: "(In the event the contractor obtains or reinstates his or her license, the provisions of this section shall no longer apply.)" Accordingly, since 2000, contractors can no longer correct a license defect and avoid the repercussions contained in §489.128 by subsequently obtaining the necessary license(s). The Florida Legislature's removal of the cure language in §489.128 effectively means that the ability to cure a license defect is no longer available.

FAQs Pertaining to Unlicensed/Licensed Contractors

Home improvements and repairs can pose many difficult problems and potentially lead to complaints for consumers. The general guidelines and cautions contained in this brochure can assist consumers and should be considered when engaging contractors.

• First, check to see if your contractor is licensed by calling the Hot Line at the Broward County Contractor Licensing and Enforcement at 765-4400 for local licensing and complaint information, or the Department of Business and Professional Regulation, (954) 917-1330, for State licensing and complaint information.
• Ask if your contractor has any unresolved complaints that have been filed against him/her and if the license has been revoked or suspended.
• Following your background check, you should:

• Ask your contractor for references
• Check out work done by your contractor with persons for whom he/she has previously performed work
• Ask how long your contractor has been in the business
• Check with local suppliers on your contractor’s reputation
• Check with the Broward County Permitting, Licensing and Consumer Protection Division (unincorporated areas and full service contract cities), or municipality on the contractor’s status to pull permits.

WHICH CONTRACTOR SHOULD I SELECT?

• Have several contractors provide you a written estimate of what you want done, specifying such items as the quality and type of materials.
• Obtain detailed estimates from all contractors for material specifications, how long the job will take to finish and the total cost.
• Be suspicious of a contractor who offers the fastest, cheapest job on a “you must act now” basis. This may be an indication of inferior materials and unfinished jobs or jobs taking too long to complete.
• Get the proposal, contract or agreement, in writing.
• Be wary if you are asked to obtain the building permit.
• A licensed contractor who is in good standing, will always obtain the permit.
• Obtain a current copy of the contractor’s insurances, including workman’s compensation, property damage and liability. Read them carefully, including the fine print.
• If you don’t understand the contract, seek help such as from an attorney.

THE CONTRACT SHOULD INCLUDING THE FOLLOWING:

• Contractor’s name, address, telephone number and Certificate of Competency or State Contractor’s license number.
• Detail of quality, types of material and a detailed description of the work to be done.
• The completion date of the work to be performed and a payment schedule.
• A notarized Release of Lien will be provided to the customer by the contractor, subcontractors and suppliers of materials attesting that the contractor has paid all subcontractors and suppliers of materials for their services up to any payment being paid.
• The contractor will obtain all necessary building permits.
• If the contractor is paid more than 10% of the contract price at the time of signing, then the contractor must apply for all permits within 30 days of receiving the funds. Work must be started within 90 days after all permits are obtained.
• Make sure that all construction debris is removed by the contractor.

CANCELING A CONTRACT

Some home improvement or repair contracts may be cancelled without penalty or obligation by midnight of the third day after signing. These contracts may include:

• Agreements resulting from door-to-door sales solicitation.
• Agreements that will be paid on an installment basis for more than 90 days.
• Agreements signed anywhere other than the seller’s normal place of business, unless you have requested specific goods or services.
• Emergency home repairs made at the owner’s request are NOT subject to cancellation under the three-day rule.

WARNING

• Avoid any contractor who requires large advance payments.
• Arrange to pay the contractor after the work is completed and according to a payment schedule.
• The payments should reflect approximately, the work that has been done.
• Avoid paying in cash. Payment by check will be a record of your payment.
• Make all payments by check to the company contracted to do the work, not to “cash” or a person’s name.
• Do not sign a completion certificate unless all the work is completed according to contract, your satisfaction and an approved, final inspection has been performed by the Permitting, Licensing and Consumer Protection Division (unincorporated areas) or your jurisdictional building department.
• If your contract exceeds $2,500.00, a Notice of Commencement must be filed by the homeowner or contractor. Your failure to record a Notice of Commencement may result in your paying twice for improvements to your property. If you intend to obtain financing, consult with your lender or an attorney before recording your Notice of Commencement. A recorded copy of the Notice of Commencement must be posted at the job-site.

FAQs Pertaining to Unlicensed/Licensed Contractors

1). Q.  How can I tell if the contractor is licensed or not?
Request to see a Certificate of Competency card and a driver’s license, the names should correspond to each other.

2). Q. Can the Contractor subcontract jobs to anyone else?
A general contractor may subcontract various trades he does not perform himself, such as, electrical, plumbing, or air conditioning. Do not pay subcontractors as the general contractor should have included the payment of the “subs” in the price. Do ensure that the contractor pays the subcontractors, they may place a lien against your property for lack of payment. Specialty contractors may not contract for work outside their category or hire subcontractors to do the work.

3). Q. It is permissible to hire a contractor on a time and material basis?
This can extend the time frame for completion and price of the project. It is better to sign a contract with a set fee and time frame for compliance.

4). Q. Can I pull an “owner-builder’ permit and then hire anyone I want?
This presents many issues. If you pull an owner-builder permit, YOU are then the contractor and assume liability for everyone, including required insurances such as, workers compensation and liability insurance and paying taxes. Owner builder permits will not be issued to condominium owners.

5). Q. How can I check a contractor’s license to ensure they are who they say they are?
You may access the Department of Business and Professional Regulations website, there is a link under the “Check if my contractor is licensed” heading. For Broward County licensed contractors you may contact us at 954-765-4400.

6). Q. does the state recovery fund protect me if I have a problem with an Unlicensed contractor?
No. The recovery fund only protects you from problems occurring when using a Licensed contractor.

7). Q. I have a problem with my contractor, what should I do now?
There is a complaint form on the Building Code Services home page. Fill it out completely, fax, email, mail or bring it in.

8). Q. Does the complaint section accept anonymous complaints?
No, there are specific requirements and documentation that are needed to pursue complaints.

9). Q. How many estimates should I obtain?
Typically, three estimates are a minimum. You should then choose the most qualified individual. Ensure that they provide you with a copy of their license. Feel free to contact us to confirm.