Licensing Flashcards by Mark Snelson

Which Part of Chp. 489 governs Electrical Contracting?

Part II

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Which Part of Ch. 489 governs Construction Contracting?

Part I

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Which Part of Ch. 489 governs Septic Tank Contracting

Part III

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Do business organizations (e.g. Snelson Contracting, Inc.) need their own license?

A licensed QA may qualify the business entity through his personal license.

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In what circumstance is a primary QA relieved from responsibility for the financial aspects of the business organization?

When the organization has an FRO - Financially Responsible Officer. He/she cannot be the primary QA. He/she is responsible for all financial aspects of the business organization, thereby relieving the primary QA from such responsibility. The FRO can be disciplined.

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How is the responsibility of a Secondary Qualifier limited?

He/she is responsible for the jobs for which he has obtained the permit. No responsibility for financial aspects of the business org.

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Under the Jim Walter exception, an unregistered/uncertified person may perform contracting services as long as three conditions are met. What are they?

(1) The work he is performing does not require a Div. II license,
(2) The project is a single family home or townhome, and,
(3) the person is under the supervision of a certified or registered contractor (supervision does not require a direct K).

** keep in mind this exception applies to both state licensing rules/regs and local construction licensing rules/regs.

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What are the differences between General Contractor, Building Contractor, and Residential Contractor license categories (what are the differences in the work these license types allow you to perform)?

General Contractor - not limited to any type of structure

Building Contractor - limited to residential & commercial structures not exceeding 3 stories

Residential Contractor - limited to residential structures not exceeding 2 habitable stories over not more than 1 uninhabitable story

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What are the major differences between a Registered Contractor and a Certified Contractor?

A Registered Contractor’s licensure runs through the local gov’t in which he works. If he qualifies under local gov’t regs he receives a “certificate of competency” from the local jurisdiction (e.g. Orange County), and then that certificate is registered with DBPR. He is limited to working in the local jurisdiction which issued the certificate of competency.

A Certified Contractor’s licensure runs solely through DBPR/CILB. He must meet their requirements for licensure. When he receives his license he may work anywhere in the state without having to obtain any local licensing (other than local occupational license).

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What are the Division II licenses?

Sheet Metal Contractor
Roofing Contractor
Class A, B, and C Air Conditioning Contractor
Mechanical Contractor
Commercial Pool/Spa Contractor
Residential Pool/Spa Contractor
Swimming Pool/Spa Contractor
Plumbing Contractor
Underground Utility Contractor
Solar Contractor
Pollutant Storage Contractor

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What are the Division I licenses?

General Contractor, Building Contractor, Residential Contractor

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How long does DBPR or CILB have to approve/deny a completed license application?

Application must be approved/denied within the latest of:

90 days of receiving completed application
15 days after public hearing on application
45 days after recommended order from DOAH
** If application is not approved or denied within the allowable timeframe then the application is deemed approved (called “deemer provision”)

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If DBPR issues a Notice of Intent to Deny (NOID), how long does the applicant have to file a written request for a hearing pursuant to 120.57?

21 days from service of the NOID. NOID must contain notice of applicant’s right to request a hearing.

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All applications must be reviewed by DBPR for completeness within ____ days.

30 days. If Dept. fails to note an error/omission/deficiency in that time frame the application is deemed complete.

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Which agencies have the power to review and approve license applications?

The CILB and DBPR. CILB has delegated to DBPR the authority to approve certain applications without review by CILB.

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What are the 6 general requirements an applicant for a certified license must meet?

Examination
Experience/Education requirement
Financial Responsibility & Financial Stability
Good Moral Character
Criminal Background Check
Insurance

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What are the 3 parts of the exam for Div. 1 licenses (Certified)?

(1) Contract Administration
(2) Project Management
(3) Business & Finance

What are the 2 parts of the exam for Div II licenses (Certified)?

(1) Trade Knowledge

(2) Business & Finance

The certified license examinations are administered ___ times per year.

Only a person who is a certified or registered contractor can engage in the business of contracting in Florida. Name some typical exceptions/exemptions to this rule.

Jim Walter exception
Owner/Builder exception
Division I subcontractor exception
Developer exemption
Manufactured Building exemption

The Owner/Builder exception allows a property owner to act as his own contractor in what situations?

For one or two family residence of any value, or for a commercial improvement up to $75,000 in value.

*** Property constructed or improved under an Owner/Builder exemption cannot be offered for sale or lease within 1 year from completion.

Explain the Division I Subcontractor Exemption

The Division I Subcontractor exemption allows an unregistered/uncertified contractor to perform contracting as long as (1) he is under the supervision of a licensed contractor, (2) the work he is performing is Div. I work and does not require a Div. II license, and (3) the work he is performing is within the scope of the supervising contractor’s license.

** This exemption does NOT affect the application of any local construction licensing ordinances (unlike Jim Walter exemption).

Explain the Developer Exemption.

An individual or entity does not need a license to sell completed residences on property in which he has any legal or equitable interest if a licensed contractor has constructed or will construct the residences.

Explain the Manufactured Building Exemption.

An individual or entity does not need a license to sell a manufactured or factory-built building that will be completed on site on property which either party to the sale contract has any legal or equitable interest, as long as a licensed contractor will be retained for the purpose of constructing or completing that building on site.

All sections of the certified license exam must be passed within ____ years of the applicant's first attempt.

Certified license exam scores are good for ___ years from the date of passing.

Registered Contractors must meet the applicable local govt's license requirements. They must also meet 3 of the 6 general requirements for certified (state) licensure. Which three?

Financial Responsibility/Stability Good Moral Character Criminal Background Check

The Financial Responsibility/Stability requirement for a certified license requires the applicant to file what?

A consumer credit report showing no unpaid liens or judgments (for any business he seeks to qualify) and a FICO derived credit score of 660 or higher (but a bond can be provided instead of the credit score). *** Keep in mind these requirements can be satisfied by the FRO.

The applicant for a certified license must submit his fingerprints for what reason?

Criminal background check.

What should you advise your client to do with regard to his license if he is shutting down his business?

Put his license on inactive status. As long as it is active, he must maintain insurance and can be disciplined if he fails.

Registered Contractors can be "grandfathered" into Certified Contractors. What is required?

The registered contractor must have passed an examination similar to the state exam, he must have 5 years experience as a registered contractor, his license has not been revoked or suspended within the last 5 years, he has not been fined over $500 in last 5 years, and he must comply with the Insurance and Financial Responsibility/Stability requirements for certified licensure.

What should a business organization do if its QA dies?

It should get an Emergency Registration from the CILB which will allow it to complete existing contracts. An officer of the company (the registrant) must notify CILB within 30 days of QA's death, provide a list of ongoing contracts, and a statement of his knowledge of those contracts/projects and his ability to complete them. *** Company cannot enter into new Ks. Can only complete Ks existing at time of QA/'s death.

A contractor must complete ___ hours of continuing education every ___ years.

14 hours every 2 years. 14 hours must include up to 6 "specialty hours" (safety, laws/rules, workers' comp, etc)

In order to avoid discipline, how quickly must a licensed contractor satisfy a civil judgment?

Within "a reasonable time."

Is a J/V required to complete the licensing process before bidding on a project?

No, a J/V can bid as long as one J/V member is qualified by a license holder and all J/V members sign authorizations giving that member full authority to conduct the contracting business. However, the J/V must complete the qualification process within 90 days of being awarded the bid.

If a qualified business's QA leaves the employ of the business, the business must hire a new QA within ___ days.

If a contractor's sub or supplier has recorded a valid lien and the contractor has received the funds to pay for the liened services/items, the contractor is guilty of financial mismanagement and subject to discipline if he does not remove the liens by bond or payment within ______ days of the lien being recorded.

Has the CILB adopted penalty guidelines for disciplinary proceedings?

Yes. 61G4-17.001.

A bond may be substituted instead of a credit score. Does the bond also relieve the applicant of the requirement to provide a credit report showing no unpaid liens or judgments?

No. *** Keep in mind the consumer credit report satisfies Financial Responsibility, while the credit score/bond satisfies Financial Stability.

True or False. The Financial Responsibility requirement only applies to applicants for initial licensure.

False. All applicants for initial licensure, additional business, or change of status (i.e. one business entity to another) must meet the Financial Responsibility requirement.

An applicant may furnish a licensing bond in lieu of the required credit score (660). What is the required amount of the bond?

Div I contractor - $20,000 | Div II contractor - $10,000