What is Contractor License Reciprocity?
Florida contractor license reciprocity means that a licensing authority for contractors in a different state recognizes Florida’s, or vice versa, as meeting similar requirements for obtaining a contractor’s license. The administrative agency in charge of granting licenses need not repeat the applicant process again; instead, reciprocity allows for a review of the records from the applicant’s original licensing agency and consideration of whether they meet the same or corresponding standards of competency. Reciprocity is important for any individual or business that wants to expand into other states. Reciprocity benefits contractors because when they move to another state they need not sit for an exam and be subject to additional residential requirements such as shoals and references. It saves money and time , and eliminates frustration. When initially getting a contractor’s license, the applicant must have been educated, trained and have a clean record. Reciprocity means that due diligence in vetting an applicant has been done, and the presumption is that the contractor has met the rigorous requirements of the other state’s approval process.
Florida’s Reciprocity Agreements
Florida grants license reciprocity to contractors licensed in five neighboring states. The five states are:
- Alabama
- Mississippi
- North Carolina
- South Carolina
- Georgia
Florida contractor license reciprocity is granted so long as you meet the following requirements based on the scope of your contractor license:
General, Building and Residential Contractor Licenses
General, Building and Residential contractors licensed in Alabama, Mississippi, or North Carolina are eligible for bid interview on similar licensure here in Florida. General contractors licensed in Georgia and South Carolina are NOT eligible for Florida licensure by reciprocity.
Electrical and Alarm Contractor Licenses
Electrical, Alarm and Low Voltage contractors licensed in the State of Mississippi are eligible for bid interview only. Electrical, Alarm and Low Voltage contractors licensed in Alabama, North Carolina, South Carolina and Georgia are NOT eligible for Florida licensure by reciprocity.
Mechanical (HVAC) Contractor Licenses
Mechanical (HVAC) contractors licensed in Alabama, Mississippi and North Carolina are eligible for bid interview only. Mechanical (HVAC) contractors licensed in Florida, Georgia and South Carolina are NOT eligible for Florida licensure by reciprocity.
Plumbing and Underground Utility Contractor Licenses
Plumbing and Underground Utility contractors licensed in North Carolina and South Carolina are eligible for bid interview only. Plumbing contractors licensed in the State of Alabama and Miami-Dade and Broward counties of Florida are NOT eligible for Florida licensure by reciprocity. Those holding a Florida Certified Contractor License are required by law to be registered with the state’s Construction Industry Licensing Board. Part of that registration process requires proof of financial stability. In order to verify such stability, it is necessary to provide a Statement of Financially Responsibility along with your registration application.
Requirements to Obtain a License through Reciprocity in Florida
Requirements to obtain a license by reciprocity include that prior to taking the exam, the contractor completed an examination or experience verification acceptable to Florida’s DBPR for which there was a fee. This is typically an exam taken in another state, but the examination has to be equivalent to the Florida requirements.
Contractors can apply for reciprocity into a number of different professions such as electrical contractors, plumbing contractors, and building contractors. Along with the exam reciprocity, the contractor must be able to prove that he has performed the same type and scope of work as required for licensure in Florida.
Florida also typically reviews contractors’ certificates of competency for reciprocity also must show that the applicant passed a trade examination. If a license applicant was exempt from taking a test in another jurisdiction, such exemption is not applicable to Florida’ laws.
Usually the contractor must be able to show that he or she has three years of experience in the last four years prior to the application being received in Florida. This experience may be underway or it may have been earned prior to the time that the contractor applied for reciprocity in Florida. The period of time for the experience can be shortened to two years if you can show four years of experience in accounting or business management, which can be obtained through a trade organization (generally). Typically, the experience of the applicant must be earned under the supervision of a master in that particular field. In some limited cases, the experience earned under the supervision of a foreman, supervisor, contractor, or engineer may be accepted.
Applicants for reciprocity can often seek to have the experience requirement waived if they achieve a passing grade on the State Examination. If the contractor can prove to the Department of Business and Professional Regulation (DBPR) that he or she has sufficient training or education and has passed either section of the test necessary for licensure, the applicant may be granted licensure by endorsement. Generally, construction-related endorsements require that the applicant hold an active license and have a minimum of five years of experience within the last 15 years.
Applying for Reciprocity
The application process for contractor license reciprocity in Florida typically involves the following steps:
Submit Your Application
All applicants must submit a Uniform State Application with notarized signatures. The Department of Business and Professional Regulation (DBPR) utilizes the uniform application across all their regulated industries, including contractors. Forms can be obtained from the Construction Industry Licensing Board or from the DBPR’s website.
Pay the Fees
Fees are paid to the state for reviewing and processing your application. Of the various fees, four are of interest to general contractors and building contractors, they include the application fee, original license fee, initial certification fee, and examination fees. All application fees are only accepted in form of a certified check or money order. The application and licensing fees are as follows:
Background Check
Part of the application process requires that you submit to a background check , which includes fingerprints. Local and national agencies conduct these checks, as well as the National Association of State Contractor Licensing Agencies database. You may also be required to submit a credit report that meets the agency’s minimum standards for acceptance.
Examinations
If you are licensed in good standing in your home state and have previously passed the national examination, you do not need to sit for another exam to meet Florida regulations. However, if you have never taken or passed the exam or have been disciplined in another state, you may be required to take the exam in Florida.
The DBPR earlier used the Prometric Examination, but this was replaced by the Pearson VUE Examination, which is prevalent for aspiring contractors.
This is a brief overview of Florida’s licensing application process for contractors. For more information on each step of the process, please refer to the State’s website.
Important Considerations
While the potential benefits of Florida contractor license reciprocity are clear, so too are the potential pitfalls. There are common traps that a contractor may fall into when pursuing licensure through reciprocity. A proactive contractor can avoid these pitfalls.
One common issue is that the contractor has yet to take one or more of Florida’s local jurisdictions licensing exams. Accordingly, if you practice in Miami-Dade county, you must pass their exam as well as the one relevant to your primary work location. Every local jurisdiction maintains its own testing requirements. You should know if you need to take the specific local jurisdiction exam for where you do business in order to avoid any surprises when the time comes. Each licensing office can assist you with finding out all local jurisdiction requirements.
Another issue can arise depending on whether the contractor used reciprocity to initially obtain licensure. If that is the case, the contractor will be required to take the contractor certification exam within a certain time period. Applicants exempted from initial licensure because of reciprocity are typically granted eligibility for the certification exam until either July 1, 2018, or July 1, 2020, depending on the particular license type. However, if they have not passed the examination by then, applicants are not guaranteed reciprocity eligibility for future examinations. Those relying on this type of reciprocity could also be dinged later on because of the limited 1% exemption provision that we discussed in the last section; reciprocity eligibility is set to run out for applicants who don’t pass the test within a specified window.
Getting an exemption based on reciprocity does not guarantee you’re in the clear. The next thing contractors should be mindful of is the construction industry has not always loved reciprocity. For purposes of the law, the term "reciprocity" means the state subject to the agreement affords substantially equivalent authority to the applicants for licensure that have been issued a respective type of license by the other state. However, not all construction professionals see reciprocity as a good thing. Some have lobbied against it because they believe those laws limit competition for jobs or fail to take into account the different requirements for licensure and endorsements in different states.
Benefits of being a Licensed Florida Contractor
Beyond the legalities of working in the construction industry, obtaining a Florida contractor license brings additional and tangible benefits. First and foremost, the construction industry is on the rise in the state. Florida’s construction jobs have grown by over 9 percent in the past year. With an accelerating construction sector, the number of industry professionals will continue to grow. Developers are particularly in need of a qualified workforce for projects throughout the state. Whether you are in new home construction or renovating existing structures, having a contractor license enables you to tap into a wide talent pool, eliminating the need to travel for work. The recent increases in population across the state have strengthened demand for housing and renovations on existing homes. Not surprisingly, housing has seen the largest growth in workforces. The growing demand for labor gives professionals in the construction industry an upper hand when seeking employment. A qualified, licensed contractor can partner with other local developers to reinforce business, which ultimately gives you the chance to build lasting relationships with other players in the industry. In doing so , licensed contractors can engage in long-term and even perennial work with regularly scheduled contracts. Construction jobs are not just bountiful in the private sector; the state’s public sector has seen a sharp rise in available positions as well. Publicly funded projects can be especially lucrative and are often long-term, multi-million dollar endeavors. Individual professionals who carry the appropriate contracting licenses can work independently, or they can act as part of an organization that is contracted to oversee or complete public projects. Like with all major construction projects, licensed professionals selected to lead public ventures typically receive a set fee as part of a fixed bid process. The state’s transportation division alone currently employs thousands who are involved in public projects statewide. In addition to long-term work, the pay differential between the public and private sector is significant. Salaries for those in the construction industry working on publicly funded jobs is regularly over 25 percent higher than the same professionals working in the private sector.