Home renovations and add-ons are often great investments for improving the aesthetics, functionality and safety of your home. While making these changes, it is of the utmost importance to hire a contractor licensed by the State of Florida. Hiring a licensed contractor will help to ensure that the services you receive are legal, safe and financially sound.
The Florida Department of Business and Professional Regulation (DBPR) is responsible for licensing and regulating businesses and professionals in the State of Florida. A contractor is required to have a Florida license if he or she performs any service that alters or impacts the structure of a building. Examples of this include adding a detached garage, building a sunroom, or remodeling a kitchen. Contractors are also required to have a valid Florida license to provide non-structural services such as plumbing, air conditioning work and electrical services. To see all services that require a DBPR license, please visit www.MyFloridaLicense.com.
Throughout the process of hiring a contractor, there are several warning signs to be aware of to assure that you are using a licensed professional. Unlicensed activity occurs when an individual performs or offers to perform any service that requires a DBPR license and that individual does not possess the required license. When hiring a contractor, it is important to do research and verify their credentials. All contractors are required to have their license numbers on all contracts, advertisements, and business cards. The person who performs the work must have a contractor’s license as well as workers’ compensation.
Unlicensed individuals will often utilize sales tactics in order to receive payment before any work has been completed. If you hire an unlicensed individual, you risk employing someone with a criminal history or no building experience. Allowing such a person to provide services could put the safety of your home and your family at risk. Unlicensed activity is not only unsafe, but it is against the law.
Furthermore, unlicensed activity can pose a substantial financial risk. If payment is made up front and none or only a portion of the work is completed, then the homeowner must hire someone to finish the job. Incomplete work from unlicensed individuals is not typically covered by homeowners’ insurance policies. If an unlicensed individual is paid, then the homeowner is responsible for that money as well as the money to hire a licensed contractor to fix or complete the job.
The following are tips to avoid hiring unlicensed individuals:
- Verify a license number. License numbers must appear on all contracts, advertisements and business cards. Avoid any advertisements or documents that do not provide a license number.
- Do your research. Contact a contractor’s references to verify a history of quality work. Legitimate contractors are usually more than willing to provide the contact information for former customers.
- Get a formal quote and estimate from multiple licensed contractors. The estimates should include work that will be completed, the completion date, materials involved and a total cost.
- Scams often come from individuals who act like salespeople and try to get you to make financial decisions on the spot. Some tactics commonly used by unlicensed individuals are offering to reduce the price drastically for a prompt payment, pressuring you for an immediate decision, and failure to provide information about themselves or their businesses.
- Providing an occupational license or corporate filing does not mean that a person is a licensed contractor. An occupational license is not a contractor license. Rather, it simply means that the individual has paid a tax receipt to the local municipality. A corporate filing only shows that a company is listed as a corporation. This does not mean that that person is licensed to perform the work of a licensed contractor.
- Be aware of individuals who do not want to put the agreement in writing, show up in vehicles that are unmarked or have out-of-state tags, or who ask for payment upfront in cash or check made out to them personally. Unlicensed individuals often use these tactics.
- Never pay more than 10% or $1,000—whichever is less—until the job is complete.
- Do not sign a certificate of completion until you are completely satisfied with the work done.
It is important to protect yourself from unlicensed activity. Licenses can be easily verified by name or license number online at www.MyFloridaLicense.com or by calling the DBPR Customer Contact Center at 850-487-1395. Please report any complaints of unlicensed activity to DBPR by calling the Unlicensed Activity Hotline at 1-866-532-1440. 
By Erin Reisinger, Unlicensed Activity Investigation Manager,
Florida Department of Business and Professional Regulation
