How To Qualify A Construction Business In Florida

Florida Construction Licensing – Qualifying an Additional Business

By Christopher M. Cobb Dec 22, 2020 Posted in Construction Police

In Florida, a construction license is given to an private and non a business organisation. If a business concern organization is not qualified and enters into contracts for the improvement of real property, information technology may be engaged in unlicensed activity.  To avert this, structure licensees should empathize the means and methods to have their business organization qualified in Florida.   Section 489.119, Florida Statutes, sets forth the requirements of the construction license holder to qualify a concern organization.

Often times, the contractor may actually be seeking to qualify an additional or second business concern or to add a 2d license telescopic to the existing business organisation. For example, a pool contractor may want to qualify two separate pool companies under a franchise system.  The structure license holder must seek to have his/her license placed with the business as the qualifying amanuensis.  As it relates to the new business to be qualified, the CILB has promulgated rules governing the qualification of additional business organisation entities, specifically, 61G4-15.0024 which states:

Documentation of i or more of the following factors in an application to qualify a business organisation entity will demonstrate to the Board, absent evidence to the contrary, that an applicant possesses the ability to properly supervise the proposed boosted business concern entity for purposes of the application:

(1) The applicant to qualify an additional business owns 20% or more of the business to exist qualified;

(2) The bidder to qualify an additional business is a W2 employee of the business to be qualified; or

(3) Other evidence of the means and methods utilized by the bidder to ensure control over the structure piece of work of the proposed additional entity.

For a contractor to qualify an additional business organization entity, they must present evidence to the CILB of their ability to supervise each business. This means that the license holder volition be responsible for all structure operations and take last say on all business matters of both businesses. If the contractor owns less than 50% of each business, they will be required to appear at i of the lath'due south monthly meetings to explicate how they intend on supervising the businesses.

Such advent at the CILB is the opportunity for the bidder or his/her lawyer to present testify as to the mode of how the additional concern entity will be supervised. While 20% buying is the CILB rule requirement, generally the CILB wants to see that the applicate has control over the business or at to the lowest degree the supervision.  Factors that counterbalance into this consideration are whether the applicant can sign contracts, bids, change orders, checks or whether the applicant has the ability to hire and fire employees.

In addition, the geographical location of the companies will impact the analysis on direct supervision.  Supervision takes on a number of forms and tin be handled personally or through employees supervised by the license-holder.  An explanation of this supervisory structure at any CILB hearing will go a long way into the approving of the additional business organisation qualification.

Less than 50% ownership is non a bar to approval of the application, but it is a factor that is considered in whether the applicate has the ability to supervise.  At a minimum, the construction license holder needs to be a W-2 employee of the company with the responsibility of supervising all construction operations.  If the applicant is receiving payment under a 1099 or as an contained contractor, that is called "renting the license" and it is illegal and the application to qualify the additional business will exist denied.  There are some additional application requirements:

• Financial/Credit: Applicants will need to provide proof of financial stability and responsibility past submitting credit reports for themselves and the concern entities they wish to qualify. Credit reports must include a FICO derived credit score and indicate that local, state and federal records take been searched. If the bidder has open liens and judgments, the CILB will crave satisfaction or written proof of a payment plan to satisfy the lien or judgment.
• Fingerprints: An applicant must have a groundwork check equally part of the licensing process. Applicants with poor moral character will be denied.
• Insurance: Applicants are required to attest that they have obtained public liability and property damage insurance in the amounts adamant by CILB rule. Applicants are also required to obtain workers compensation insurance or obtain an exemption from workers compensation insurance within 30 days of issuance of their license.
• Local License: In lieu of a country certification examination, applicants for registration must testify show of possessing a document of competency from a local licensing office ("local comp menu"), as provided for in the application.
• Fee: The applicant must pay the required fee as provided in the awarding.

To read about the author of this blog visit: https://www.cobbgonzalez.com/attorneys/christopher-m-cobb/

Source: https://www.cobbgonzalez.com/florida-construction-licensing-qualifying-an-additional-business/

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