- Florida Law requires all construction contractor applicants to establish that they are both financially responsible and financially stable prior to issuance of their licenses. The Construction Industry Licensing Board has determined a contractor will be deemed financially responsible and stable if the following items are established:
- There are no unsatisfied liens against the applicant or the company he or she intends to qualify;
- There are no unsatisfied judgments against the applicant or the company he or she intends to qualify;
- Applicant has a 660 FICO derived credit score or higher, or submits a licensing bond or irrevocable letter of credit; and
- The licensing bond or letter of credit shall be maintained until the applicant has achieved a FICO credit score of 660 or higher.
Licensing Bonds and Letters of Credit:
If an applicant does not have a 660 credit score at the time of application, the applicant may still establish financial responsibility by obtaining a licensing bond or letter of credit. The amount of the bond or letter of credit depends on the type of license sought: $20,000 for Division I contractors or $10,000 for Division II contractors.
These amounts may be reduced to $10,000 for Division I contractors and $5,000 for Division II contractors by completing a board-approved financial responsibility course.
The Division I and II Contractor’s License Surety Bond amount depends on the contractor’s line of business.
Division I contractors are those licensees who currently hold or are applying for a general, residential, or building contractor license and the surety bond amount is set at $20,000.
Division II contractors are those licensees who currently hold or are applying for a contractor license other than a general, residential, or building contractor license and the surety bond amount is set at $10,000. Typical Division II contractors include HVAC, Electrical, and the like.
However, both bond amounts can be reduced by 50% ($10,000 for Division I and $5,000 for Division II) by taking a financial responsibility class and submitting the class completion certificate to the state with their application.