Construction Trades Consumer Awareness Seminar

1. Construction Trades Consumer Awareness Seminar

2. A Little About the Department

3. Bureau of Unlicensed Activity Mission: Identify and eliminate the practice of unlicensed activity through the coordinated efforts of the department’s regional offices, local building departments, other state agencies, law enforcement agencies, and the appropriate State Attorney’s Office. Objective: Educate the public of the need to hire only licensed individuals when licensure is required and to conduct operations to identify the practice of unlicensed activity. Once these practices are identified, the department will take appropriate steps to effectively eliminate the activity. These steps may include the issuance of a cease and desist order, the issuance of a citation, or an imposition of administrative fines. Enforcement Activities: Sweeps Stings Disaster Operations Education Activities: Public Service Announcements Unlicensed Activity Web Page Brochures and other Literature Public Speaking Engagements Intergovernmental Meetings

4. Beware of Construction Con Artists, Who May: Target the elderly and uninformed, or the young and inexperienced. Focus on roofing and remodeling. Solicit door-to-door, frequently traveling in unmarked vehicles. Give a post office box address instead of a street address. Demand that you obtain the necessary building permits. Ask for all or a large portion of the money up front. Request that payments be made in cash. Present a local occupational tax certificate as a “contractor’s license.”

5. Who Needs to be Licensed Generally, a state Certified or Registered contractor’s license is required for any structural additions or remodeling, roofing, air conditioning, plumbing, electrical/alarm work, pool/spa work, structural aluminum work, or any job which requires a building permit. In addition, many local jurisdictions have additional licensure requirements for other specialty contractors, such as painting, drywall, masonry, tile and concrete work. You can verify local licensure requirements by contacting your building department.

6. Certified vs. Registered Contractors A Certified contractor is licensed by the state through the DBPR. Certified contractors may work anywhere in the state and must be recognized by all local jurisdictions. Discipline is handled by the department. A Registered contractor is licensed by a local licensing board, and must register the license with DBPR for the license to be valid. A Registered contractor may work only in the local geographic area that issued the license, or any adjoining jurisdiction that offers reciprocity. Discipline of registered contractors is handled by the jurisdiction that issued the license.

7. The Handyman The state of Florida does not license or regulate those calling themselves a handyman. Therefore a handyman is only permitted to perform minor repairs and cannot legally perform any of the work previously mentioned that requires a license. When a handyman expands their efforts from minor repairs to structural repairs or other work they are not authorized to do, they are entering the area of unlicensed activity and are subject to prosecution. Unlicensed activity is a misdemeanor for the first offense and becomes a felony upon the second offense. Be aware that contracts with unlicensed individuals are unenforceable under Florida law. (FS 489.128)

8. Owner-Builder ExemptionSection 489.103(7), FS If you do not intend to do the work yourself and have been asked by someone without a contractor’s license to pull the permit, you are at risk of financial harm both by penalty and injury. Section 489.103(7), Florida Statutes states: Owners must supervise the work being performed. Any person working on your building who is not licensed must be employed by you, which means that you must deduct F.I.C.A and withholding tax and provide workers’ compensation for that employee. Work is limited to a one or two family residence, farm outbuilding or commercial property up to $75,000 in total construction costs. The property cannot be sold for one year after construction is completed. Not only is it dangerous, but it’s also a crime. Section 455.227, Florida Statutes: Any person who knowingly aides, assists, procures, employs or advises an unlicensed individual can be charged with a first degree misdemeanor and may face fines of up to $5,000 for each offense.

9. Finding a Reputable and Reliable Contractor Ask to see the contractor’s registered or certified license. All state-generated licenses include a wallet card. Verify that the license you are shown confirms the person’s identity. Note the license number and check with the DBPR or your local building department to verify that the license is current and active. Determine how long the contractor has been in business. Ask for references of persons for whom the contractor has done work and CHECK THEM OUT.

10. Contractor’s License

11. Occupational License(Business Tax) 2006-2007 CITY OF _________________ BUSINESS TAX CERTIFICATE 2006-2007 TAX CERTIFICATE EXPIRES AUGUST 31, 2007 DBA: Woody’s Wood Work Account Number: 568564 LOCATION ADDRESS: 21 Main Street Type Code Sub Code: Type Description: Any Town, FL 1 a Carpenter 32399 The firm, corporation, organization, business or individual whose name appears hereon has paid a business tax for the business activities indicated above, subject to city, state and federal laws. This certificate must be conspicuously displayed at the location of the business activity. A change of location from the stated business location on this certificate as well as a change in ownership requires a transfer.

12. Before Signing the Contract,You Should: Consult your insurance agent to determine if the repairs are covered by your policy and verify the proper procedure you must follow to ensure payment of the claim. Read the contract carefully. Fill in all of the spaces. Have an attorney review the contract before you sign. Take every reasonable precaution to protect your interests.

13. Be Sure Your Contract Includes: The contractor’s name, address, telephone number and professional license number. A detailed description of work to be completed and the quality and type of materials to be supplied, also known as the job specifications. A complete list of companies or individuals supplying the contractor with labor or materials. The total cost and a payment schedule tied to the completion of various stages of the project, also know as the draw schedule. Any financing information that is required by law or that is part of the transaction.

14. Be Sure Your Contract Includes (cont’d) : Any warranty agreements. A commencement and completion date. All necessary building permits or fees that will be the responsibility of the contractor. (The person that signs for the permit is responsible for the completion of the construction.) An agreement regarding site cleanup and debris disposal. A notice of the consumer’s rights under the Florida Homeowners’ Construction Recovery Fund for contracts involving general, residential and building contractors.

15. Complaint Process To file a complaint, visit our Web site at www.MyFloridaLicense.com or call 850.487.1395. Submit all supporting documentation with your complaint. Your complaint will be reviewed by a consumer analyst. Upon a determination of legal sufficiency, your complaint will be forwarded to either our Alternative Dispute Resolution Bureau or a field investigator who will be in contact with you. Upon completion of the investigation, all materials will be forwarded to a department attorney for review and possible administrative action. All unlicensed activity investigations will also be forwarded to the appropriate State Attorney’s Office.

16. Bureau of Alternative Dispute Resolution Mission - The mission of the program is to expedite the resolution of complaints, and reduce the associated costs of processing these complaints by helping the disputing parties reach a mutually acceptable and voluntary agreement. Objective - It is the objective of the Department to diligently encourage and facilitate the resolution of all qualified complaints by a voluntary, non-adversarial, and mutually acceptable process. It is only after these attempts have failed that other means are to be utilized.

17. Alternative Dispute ResolutionStatistics

18. Some Final Advice Avoid any contractor who requires a large advance payment. Agree to pay after the work is completed or by regular payments. Be cautious when a contractor requests checks written to an individual rather than a company. This could be a sign of unlicensed activity. Do not sign any type of completion certificate until all work is completed to your satisfaction. Obtain a copy of the Certificate of Occupancy (CO) issued by the building department to verify that the structure is complete and all code requirements have been met. Do not pay in cash, as you will not have proof of payment in case of a dispute. If you must, get a detailed, SIGNED receipt from the contractor. If your contract exceeds $2,500, become familiar with the Florida Construction Lien Law. A notarized Release of Lien will help ensure that you will not have to face double payments or possible loss of your property to unpaid workers or material suppliers.

19. Contacting the Department The Florida Department of Business and Professional Regulation provides up-to-the-minute information about all of our licensed professionals online at www.MyFloridaLicense.com. To verify a license, please call 850.487.1395. To report unlicensed activity toll-free, please call 1.866.532.1440. Mailing address: 1940 North Monroe Street Tallahassee, FL 32399