With people flocking to Florida, it’s having a ripple effect on the construction industry. According to the Associated General Contractors of America, Florida leads the nation in terms of construction employment growth. The Bureau of Labor Statistics (BLS) lists Florida as one of the top five states with the highest employment level for construction workers.
It’s an excellent time to become a licensed as a residential contractor (or CRC) in the state.
Florida’s licensing is slightly different from other states. You will find certified residential contractors who can work state-wide and registered residential contractors who are restricted to working within local jurisdictions.
Florida does not have a single set of residential contractor licensing requirements; however, the initial licensing process generally includes education, an apprenticeship, and an exam.
Within this state, obtaining the correct license based on your career goals is important. This article will explain the differences between the licenses, the steps to become licensed, and the importance of taking an exam preparation course so that you can pass your exam on the first try!
What is a Residential Contractor in Florida?
Florida Department of Business and Professional Regulation (DBPR) issues three license types that allow you to work in residential construction: general contractor, building contractor, and residential contractor. The license type you choose limits the scope of projects that you can pursue.
General Contractors are not limited in scope. They can perform any type of work within the state.
Building Contractors are limited to the construction of commercial buildings and single-family or multi-family residential buildings not exceeding three stories. They can also construct accessory structures, such as a guest house or garage or remodel, repair, or improve any building of any size if the services do not affect the structural elements of the building.
Residential Contractors are restricted to construction, remodeling, repair, or improvement to one-, two-, and three-family residences no more than two stories high. Construction of accessory buildings are also permitted under this license, including garages, guest houses, sheds, or other outbuildings.
You should consider your career goals when deciding which license to obtain. All three have similar application requirements, including four years of experience or a combination of experience and education. Each requires you to pass a background check, be of sufficient financial stability, and pass a licensing exam.
Some contractors start with a residential license and later expand their scope and take the exam to become a building or general contractor.
How to Get a Residential Contractor License in FL
You must meet age, experience, and education requirements to take the exam. To become a licensed residential contractor, you will also need to pass a background check, prove financial stability, and obtain insurance.
Age, Experience, and Education Requirements
Before applying to take the exam, you must:
- Be 18 years or older.
- Have a minimum of four years of relevant experience. Relevant work experience includes foundation/slabs, structural formwork, masonry walls, structural demolition, column erection, structural wood framing. You can meet this requirement through education and experience as follows:
- Four-year degree in a construction-related field.
- One year of experience as a foreman and three years of college-level courses.
- One year of experience as a laborer, one year of experience as a foreman, and two years of college-level courses.
- Two years of experience as a laborer, one year as a foreman, and one year of college.
- Four years of experience as a worker or foreman with at least one of year as a foreman.
Once you confirm which experience method you fall into above, you will be required to submit your experience in a project format. Each project’s dates must all add together to the required years of experience for your experience method. The date of each project will be in the format of month/year to month/year for the start and end dates of the projects. Each project must check off 3 of the 5 experience areas to qualify: foundation/slabs, structural formwork, masonry walls, structural demolition, column erection, structural wood framing. If you have any questions, sign up for our start-up consultation to speak with a licensing expert.
Pass the Required Examinations
Once you meet the age and experience requirements, you can apply to take the exam. Licensees must pass two exams: the business and finance exam and a two-part residential construction exam covering contract administration and project management. All exams are open book and require a 70% or higher to pass.
The business and finance exam has 120 multiple-choice questions. You have 6.5 hours to complete the exam.
The exam tests your knowledge in six main areas:
- Establishing the Contracting Business (11%)
- Managing Administrative Duties (26%)
- Managing Trade Operations (10%)
- Conducting Accounting Functions (32%)
- Managing Human Resources
- Complying with Government Regulations (15%)
The residential contractor exam has a total of 90 questions and a 4.5-hour time limit. If you have a four-year degree in building construction with a GPA of 3.0 or better, you are exempt from taking this portion of the exam. The exam tests seven content areas in two parts.
Part One:
- Preconstruction activities (29%)
- Project contracts (40%)
- Obtaining Licenses, Permits, and Approvals (20%)
- Construction Procedures and Operations (11%)
Part Two:
- Construction Methods, Materials, Tools, and Equipment (64%)
- Safety (18%)
- Reading Plans and Specifications (18%)
The best way to prepare for the exam is to take a Florida residential contractor exam prep course from a reputable training center. Most exam preparation courses include the materials that you can bring with you to the exam. All reference materials must be permanently or professionally bound. Tablets, handwritten and typewritten notes, or removable tabs are not allowed.
Application Process
Once you pass the exam, you can apply for your license. The application includes:
- Personal Information
- Current or Prior License Information
- Background Check
- Method of Qualification (Experience and Education)
- Insurance
- Financial Responsibility and Stability
The application fee is $95 or $145, depending on when you apply. If you apply between May 1 and August 31 of an odd year, the fee is $145. If you apply between September 1 and April 30 of an even year, the fee is $95. This applies for 2024/2025 only. After that, the fees increase to $245 (May 1 to August 31 of odd years) and $145 (September 1 to April 30 of even years).
Establishing Financial Stability & Insurance Coverage
Applicants for a Certified Residential Contractor in Florida must prove they are financially stable by submitting a personal credit report, including a FICO credit score. If your FICO score is under 660, you will need to submit a bond or irrevocable letter of credit. Half of the bond or letter requirement needs to be met by completing a 14-hour course on financial responsibility.
As for insurance, you will need to prove that you have public liability and property damage insurance. Workers’ compensation insurance or an exemption from workers’ compensation insurance must be obtained no more than 30 days after your license has been issued.
Continuing Education and License Renewal
All licenses expire August 31 of even years. You must complete 14 hours of continuing education (CE) prior to renewal. CE must include 1 hour of each: specialized or advanced module, workplace safety, business practices, workers’ compensation, laws and rules, and wind mitigation. The remaining units can be any board-approved Florida contractor continuing education courses.
The renewal fee is $205.
Benefits of a Residential Contractor License in Florida
There are many benefits to becoming a residential contractor in Florida, including a high demand for contractors to meet population growth and housing needs. The construction industry offers job stability and upward mobility. Licensed contractors can work for small and large companies or open their own businesses.
Many contractors choose to specialize in areas such as green building or hurricane-resistant construction mitigation certification, which can boost their earning potential.
Licensed residential contractors earn an average of $59,669 a year. Top earners make $109,133.
Your Path to Becoming a Licensed Residential Contractor
The path to becoming licensed takes a minimum of four years. You can meet the requirements through hands-on experience or a combination of experience and education. Whether you’re just getting started or have several years of experience under your belt, now is an excellent time to get licensed.
When it comes time to take your exams, you can count on Gold Coast Schools to help you pass your exams. Our courses include unlimited online practice exams, virtual office hours, and a weekend workshop. Classes are live, livestream, and on-demand to fit your schedule.
We’re here for you every step of the way. So, if you need further resources or licensing assistance, reach out today.