Articles of Interest

ANDY JANECEK
As a result of the current state of the construction industry in Florida we are seeing a rise in cases where financial problems for a construction company have meant financial harm to a consumer. We are committed to the protection of consumers and must maintain a high standard for our licensees when it comes to the financial well-being of Florida’s citizens.

The board has disciplined many contractors simply because the qualifying agent had no real control over or had taken little interest in the financial aspects of the business. As licensee and qualifying agent you can be held personally responsible for any financial harm that the business entity inflicts on a consumer.

The board takes note of the fact that many qualifying agents do not have ownership in the business they qualify and can prohibit principals in a qualified company from participating in another business if any wrong-doing has been committed. However, it is still the qualifying agent who must answer for any financial harm to the consumer, unless a board-approved financially responsible officer has been designated.

If you are qualifying a business entity and do not have ownership in the business or control of the business’ financial affairs, you should immediately get involved and make yourself aware of every aspect of the business. You may also wish to consider applying for the approval of a financially responsible officer.

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ANDY JANECEK
Did you know that if you are engaging in contracting as a business organization, including any partnership, corporation, business trust, or other legal entity, your business must be qualified through a licensed contractor and must obtain a qualified business license? Have you also considered that any contract executed by an unlicensed business entity may be unenforceable under Florida law? How would you like to do a job that requires a contractor’s license, only to find out that you may not be paid because your business entity is not properly qualified?

Before attempting to qualify a business entity you should consider your responsibilities as a licensed contractor and determine if you are willing to assume all of the responsibilities included in Chapter 489, Part I, Florida Statutes. When qualifying a business entity as a primary qualifying agent you must be willing and able to be responsible for the supervision of all operations of the business organization, for all field work at all sites, and for financial matters, both for the organization in general and for each specific job.

If the business entity has designated a board-approved financially responsible officer, the qualifying agent has relinquished responsibility for the financial matters of the business organization but is still solely responsible for supervising all construction operations and field work. Unless you are willing to assume all of these responsibilities you should reconsider your decision to qualify a business entity. For information about qualifying a business entity or obtaining approval for a financially responsible officer, you may contact the department’s Customer Contact Center at 850.487.1395, or visit our website, at www.MyFloridaLicense.com> Direct to Our Divisions > Professions and Professional Boards > Construction Industry.

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AMY LARISSA VAUGHNAre you aware that if a qualifying agent passes away, the business entity is eligible for a Temporary Nonrenewable Certification? It’s true. This certification allows a company in good standing to finish all the projects that were started prior to the contractor’s death.In accordance with Section 489.121, Florida Statutes, someone from the company can assume all responsibilities of the primary qualifying agent for that entity.

If an incomplete contract exists at the time of death of a contractor, the contract may be completed by any person even though not certified or registered. Such person shall notify the board, within 30 days after the death of the contractor, of his or her name and address, knowledge of the contract(s), and the ability to complete it. If the board approves, he or she may proceed with the contract.” Section 489.121, Florida Statutes.

If this situation should ever occur, please notify the department within 30 days of the death of the contractor, along with the following items:

• A written letter, on company letterhead, advising the Department of Business and Professional Regulation of the death. This letter should be addressed to G.W. Harrell, Executive Director for the Construction Industry Licensing Board, and should be from the person who is assuming the responsibility of the primary qualifying agent. This person should already be affiliated with the business entity and should explain the qualifications that he or she possesses. We must have in writing that this person is assuming the responsibility.
• A copy of the death certificate.
• A list of all contracts/permits that are currently under construction. Please include the permit number, permit location, and municipality in which the permit was pulled.

Once you have all the information required for the Temporary Nonrenewable Certification, you should mail it to:

G.W. Harrell, Executive Director
Construction Industry Licensing Board
Department of Business and Professional Regulation
1940 North Monroe Street, #N14
Tallahassee, Florida 32399-1039

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House Bill 7163 (2007 Legislative Session) revised the continuing education requirements for certified and registered contractors licensed by the Construction Industry Licensing Board. All certified and registered contractors must now complete one hour of laws and rules-related continuing education as part of the 14 hours that are currently required during each licensure cycle.

Enforcement of the new one-hour requirement will begin with the expiration of certified licenses on August 31, 2008, and the expiration of registered licenses on August 31, 2009. Those licensees not in compliance with all continuing education requirements by the expiration date of their licenses may face non-renewal or disciplinary action.

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