Licensing / Contractor Issues

Which of the following is NOT correct?

A)     Any person who falsely holds himself out to be a licensed contractor is guilty of a first degree misdemeanor.

B)     The county, municipal, or local licensing board may issue a cease and desist order to anyone engaged in contracting without a valid license.

C)    A contract entered into by an unlicensed contractor is legally enforceable.

D)    In any action against an unlicensed contractor for injuries resulting from negligence, the consumer is entitled to three times the actual damages sustained.

Penalties for Unlicensed Activity Contractors Manual 2-14

Engaging in contracting services or holding oneself out to be a contractor without first obtaining a license is a violation of Florida law. Any person who falsely holds himself out to be a licensed contractor or who engages in contracting without first obtaining a license is guilty of a first-degree misdemeanor, and a second offense is a third-degree felony.
The Department of Business and Professional Regulation or a county, municipal, or local licensing board may issue a cease and desist order to prohibit any person from engaging in the business of contracting without a valid license.

Any contract entered into by a contractor not licensed pursuant to Part I (construction) or Part II (electrical/alarm system) of Chapter 489, Florida Statutes, is legally unenforceable.

Any person who performs an activity requiring state licensure as a contractor is guilty of unlicensed contracting if he or she does not hold a valid state certificate or registration, regardless of whether he or she holds a local contractor license or certificate of competency. Persons who engage in contracting outside the geographical scope of their registration is also guilty of unlicensed contracting. Local building departments are prohibited from issuing a building permit to any contractor or person holding themselves out as a contractor, who does not hold a valid active state certificate or a registration in the category of work covered by the permit. Possession of a local contractor license or certificate of competency is not sufficient to obtain a building permit as a construction contractor if the activity in question requires state licensure.

In addition, in any action against a contractor for injuries sustained resulting from the contractor’s negligence, malfeasance, or misfeasance, the consumer is entitled to three times the actual damages sustained and costs and attorney’s fees if the contractor is neither certified by the state nor licensed pursuant to the laws of the city or county in which he does business.

Which type of contract is most likely not negotiated?

A)     Fixed-Price
B)     Cost-Plus
C)    Lump Sum
D)    Guaranteed Maximum Price

Types of Contracts – Contractors Manual 10-34

One division includes those contracts for which the contractor is selected on the basis of competitive
bidding (typically fixed-price).

The second major division of construction contracts consists of those that result from direct owner-contractor negotiations. Negotiated contracts can be on any mutually agreeable basis: lump-sum, cost-plus-fee and G.M.P. (Guaranteed Maximum Price).