You worked hard building your construction contracting business and look forward to what the New Year has in store. However, operating as a successful contractor requires more than just labor, a strong work ethic, and a can-do attitude. You need to make sure you are following the law–especially when it comes to holding the proper licenses and certifications to do work. While acting as a licensed supervisor over unlicensed or unregistered contractors may have worked fine for projects in the past, a new Florida court ruling just reaffirmed the law: if a contractor is on the project owner’s contract, they have to hold their own certificate or registration–or face legal penalties.
In Florida, the difference between an enforceable, smooth construction contract and an expensive loss could hinge entirely on a single statute: Fla. Stat. § 489.119 Business organizations; qualifying agents. This statute shares what contractors need to know about proper licensure and the consequences of remaining unlicensed or unregistered (for a business) on the job. Let’s take a look at what you can do to abide by this law, and save yourself–and your business–the headache of legal fees and wasted contracts.
Follow the Law on Licenses
If you are doing business as any entity other than a sole proprietorship (like an LLC or a corporation) the contracting business must itself be either certified or registered to do work on site. To accomplish this, the business may apply to be a qualifying agent. Under Florida law, an applicant to be a qualifying agent must have:
- Final approval authority for all construction work performed by the business organization.
- Financial control over business matters, including contracts, work specifications, checks, drafts, and payments.
- Supervisory responsibility for the construction activities of the business organization.
The law is clear: simply having a licensed contractor on hand is not enough; that contractor must be directly linked to the contracting business entity through an application with the Construction Industry Licensing Board.
A Strict Rule on Licenses and Certifications
What if you’re not licensed, or your business is not registered to do work? Can you protect yourself if a client suddenly cancels a project and refuses to pay? In 2025, we saw the risks of working without a proper license or registration in CAM Bradford Homes, LLC v. Arrants.
Here, the owner of CAM Bradford Homes, LLC, was a certified general contractor who personally supervised a home build and personally retained all necessary permits to do the work. However, he never officially applied to qualify the LLC itself with the Department of Business and Professional Regulation (DBPR).
When a dispute arose mid-project and the client terminated CAM Bradford Homes’ contract, the court ruled that, while the owner himself was licensed, the LLC that was performing the home work was an unlicensed contractor. The court rejected the argument that having a licensed owner acting as an agent was sufficient under Florida law, ruling that accepting such a situation would render Florida’s licensing statutes meaningless.
CAM Bradford Homes, LLC’s owner’s failure to apply for the proper certifications and licenses for his business lost him a contract, countless hours of labor, and the contract price–along with legal fees.
Don’t let this be you, or you and your business could be exposed to a very expensive day in court.
What Happens if You or Your Business Remains Unlicensed?
If your business is determined to be unlicensed because it lacks a properly qualified agent, permit, licence, etc., the financial and legal consequences can be severe:
- Unenforceable Contracts: As a matter of public policy, contracts entered into by an unlicensed contractor are strictly unenforceable. If a client backs out, a court won’t recognize your claim without the proper licensing.
- No Lien Rights: You cannot file a construction lien or make a bond claim for any labor, services, or materials provided under the contract or any amendment to the contract.
- Treble Damages: You may be liable for triple the actual damages in addition to the consumer’s attorney fees and costs for a contractor’s negligence and wrongdoing.
- Criminal Penalties: Engaging in unlicensed contracting can potentially lead to a first-degree misdemeanor for the first offense or a third-degree felony for subsequent violations.
How to Protect Yourself As A Florida Contractor
To protect your business, ensure you are practicing good corporate hygiene when it comes to your licensure:
- Verify Your Business’ License: Don’t just assume your individual license covers your business on a contracting job. Check the DBPR records to ensure your business entity itself holds the appropriate certificate or registration.
- Confirm the Qualifying Agent: Ensure your qualifying agent has clear documented authority over work contracts and financial drafting.
- Display Your Number: Your registration or certification number must appear on every offer of services, bid, contract, and advertisement to ensure optimal protection.
- Act Quickly on Terminations: If your only qualifying agent leaves the business, you only have 60 days to find a new one before you must stop contracting.
Ensuring your business remains in good standing is a continuous endeavor. While it may seem daunting at times, it is the best way to protect yourself and your business and ensure your contracts are enforceable when the time comes.
If you have questions regarding the qualification of your business or need assistance with licensing compliance, reach out to one of our experienced attorneys today.
