Why You Must Hire Licensed Contractors for Commercial Construction
In Florida, hiring an unlicensed contractor for commercial work isn't just risky—it's illegal and can void your insurance, create permit issues, and leave you with no legal recourse.
Florida law requires contractors performing commercial construction work over $1,000 to hold a valid state or local license. This isn't bureaucratic red tape—it's a protection mechanism that ensures contractors have demonstrated competence, financial responsibility, and proper insurance.
Despite these requirements, unlicensed contracting remains one of Florida's most common consumer complaints. The Department of Business and Professional Regulation (DBPR) investigates thousands of cases annually, but many property owners only discover they've hired an unlicensed contractor when problems arise.
For commercial property owners, the stakes are even higher. Commercial projects involve larger sums, more complex regulations, and greater liability exposure. Understanding contractor licensing—and how to verify it—is essential for protecting your investment.
Types of Florida Contractor Licenses
Certified General Contractor (CGC)
Certified Building Contractor (CBC)
Registered Contractor
For most commercial construction projects, you'll want a Certified General Contractor (CGC)—this license allows construction of any building type anywhere in Florida.
Risks of Hiring Unlicensed Contractors
The low bid from an unlicensed contractor often becomes the most expensive mistake you'll ever make.
No Legal Recourse
Contracts with unlicensed contractors are unenforceable in Florida. If they don't complete the work or do it poorly, you may have no legal remedy to recover your money.
No Insurance Coverage
Unlicensed contractors typically lack proper insurance. If a worker is injured on your property or damage occurs, you could be personally liable.
Permit Problems
Only licensed contractors can pull permits for commercial work. Unpermitted construction can result in fines, required demolition, and problems selling the property.
No Bond Protection
Licensed contractors must be bonded, providing financial protection if they abandon the project. Unlicensed contractors offer no such protection.
Florida Law: Contracts Unenforceable
Under Florida Statute 489.128, any contract with an unlicensed contractor is unenforceable by law. This means:
- You cannot sue to recover damages for defective work
- You cannot sue to recover deposits or progress payments
- You cannot enforce completion deadlines or warranties
How to Verify a Contractor's License
| What to Verify | How to Verify | Why It Matters |
|---|---|---|
| State License | Search DBPR's online license verification at myfloridalicense.com | Confirms they passed state exams and meet financial requirements |
| Insurance Coverage | Request certificates of insurance directly from their insurer | General liability should be $1M+ for commercial work; also verify workers' comp |
| Bonding | Verify bond is current and adequate for your project size | Protects you if contractor abandons project or fails to pay subcontractors |
| License Status | Check for any disciplinary actions or complaints | Pattern of complaints indicates potential problems |
| Qualifying Agent | Verify the person pulling permits is on the license | Some companies illegally use others' licenses |
Pro Tip: Verify licenses yourself—don't just trust the contractor's claims. Visit myfloridalicense.com and search by license number or business name.
What a Licensed Contractor Provides
Demonstrated Competence
- Passed rigorous state examinations on construction knowledge
- Minimum 4 years documented experience in the field
- Continuing education requirements to maintain license
Financial Responsibility
- Required general liability insurance coverage
- Workers' compensation for employee injuries
- Surety bond to protect against non-completion
Legal Accountability
- Subject to DBPR disciplinary oversight
- Contracts are legally enforceable
- Can be held liable for code violations
Proper Permitting
- Authorized to pull building permits
- Work subject to building department inspections
- Certificate of Occupancy upon completion
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Florida Construction Specialists holds a Certified General Contractor license (CGC#XXXXXX), $X million in liability coverage, and full bonding. Your project is protected.