Certified vs. Registered Contractor License in Florida: Which One is Right for You?
Are you a Florida-based contractor in need of a license? Have you been struggling to figure out whether you should become a Certified or Registered contractor? Look no further! All the answers for you are right here. Read on to find out the difference between the two licenses, and the benefits, limitations, and requirements of each. We’ll also explain how API Processing, a licensing service organization with 30 years industry experience, can assist you in obtaining and maintaining these licenses.
Understanding the Basics
Certified Contractor License
A Certified contractor license allows you to work anywhere in the state in which you are licensed. This license is recognized statewide and is not restricted by local jurisdiction. Certified contractors can undertake a wide range of projects, including residential, commercial, and industrial works. For instance, you can handle large-scale renovations, new constructions, and commercial building projects.
Registered Contractor License
A Registered contractor license is traditionally valid only within the specific local jurisdiction where it was issued. This type of license is tailored to meet local county standards and regulations. Up until recently, if you obtained a Registered contractor license, you could work on projects within your local area but were restricted from working in other jurisdictions without additional permissions. Typical projects for registered contractors include local residential repairs and small-scale commercial projects within the city limits.
Impact of Florida House Bill 735
House Bill 735, which goes into effect on July 1, 2025, will significantly impact Registered contractors in Florida. The bill preempts local licensing requirements, which means that local jurisdictions will no longer have authority over these licenses and will not be able to issue or renew Registered contractor licenses. Instead, contractors will need to obtain a state-issued Certified contractor license to work in Florida. This change aims to standardize contractor licensing across the state, remove the variability of different local regulations and create a more consistent regulatory environment.
Key Differences between Certified and Registered Licenses
Geographic Scope
The most significant difference between the two licenses is their geographic scope. A Certified contractor license provides the flexibility to work anywhere in the state, making it ideal for contractors looking to operate across multiple counties or regions. In contrast, a Registered contractor license is limited to a specific local area, suitable for contractors who prefer to work locally or are established within a certain municipality. However, with Florida House Bill 735, the Registered license will be phased out as of June 30, 2025, and all contractors will need to be Certified to continue working legally in Florida.
Application Process
The application process for a Certified contractor license involves a rigorous process, including passing a state-level examination that covers a broad spectrum of contracting knowledge. This can be a demanding and time-consuming process. In comparison, obtaining a Registered contractor license generally involves a simpler application process, often requiring approval from local municipal authorities and sometimes a local exam. But moving forward, all contractors will need to meet the state’s Certified licensing requirements.
Regulatory Authority
Certified contractor licenses are regulated by Florida’s Department of Business and Professional Regulation or an equivalent state authority. This means that certified contractors must comply with state-level regulations and standards. Registered contractor licenses, however, were regulated by local municipalities, such as city or county building departments. With the implementation of Florida House Bill 735, local regulation will be replaced by state-level regulation, ensuring uniform standards and requirements across Florida.
Benefits and Limitations of Each License Type
Certified Contractor License
Benefits:
- Statewide Recognition: One of the primary advantages of a Certified contractor license is the ability to work anywhere in the state. This provides greater mobility and the ability to bid on projects across multiple regions.
- Higher Earning Potential: Access to a larger market can lead to more opportunities and potentially higher income. Certified contractors can take on larger and more diverse projects, which can increase their earning potential.
Limitations:
- Stringent Requirements: Obtaining a Certified contractor license involves meeting more demanding educational and experiential prerequisites. This can include extensive documentation of work experience and passing a comprehensive examination.
- Higher Costs: Certified licenses typically involve higher fees for application, renewal, and continuing education. These higher costs can be a barrier for some contractors.
Registered Contractor License (Phasing Out)
Benefits:
- Easier to Obtain: The requirements for a Registered contractor license were generally less stringent, making it more accessible, particularly for those new to the industry. This was an attractive option for contractors looking to start their business locally.
- Lower Costs: Registered licenses generally involved lower fees for both initial application and renewal, which was beneficial for small businesses or individual contractors.
Limitations:
- Geographic Restrictions: A significant limitation of a Registered contractor license was that it was restricted to the local jurisdiction that issued the license. This limited business growth and opportunities outside the local area.
- Fewer Opportunities: Contractors with a Registered license might miss out on larger projects that required a Certified license.
License Requirements for Both Types
Educational and Experience Requirements
For a Certified contractor license, the educational and experience requirements are rather stringent. Typically, this includes proof of formal education in construction or a related field and documented work experience, usually several years in the field. In contrast, a Registered contractor license required less formal education and less extensive experience, though some training or vocational courses might still be necessary. But again, with Florida House Bill 735, all contractors will need to meet the more stringent requirements for the Certified license.
Examination Details
The examination process for a Certified contractor license is comprehensive, covering state building codes, business practices, safety regulations, and technical knowledge. The exam format often includes multiple-choice questions, practical assessments, and sometimes an oral interview.
For a Registered contractor license, the exam content was focused on local codes and regulations, business practices, and safety standards, and it was typically a written test administered by the local authority. Going forward, all contractors will need to pass the state-level exam for certification.
Financial Requirements
Obtaining a Certified contractor license usually involves higher fees for both the initial application and renewal. Additionally, Certified contractors must meet state requirements for contractor bonding and liability insurance.
In contrast, the financial requirements for a Registered contractor license were generally lower, with less expensive fees and less stringent bonding and insurance requirements. Florida House Bill 735 changes that by standardizing these financial requirements across the state, eliminating the lower-cost option of the Registered license.
How API Processing Can Help with Both Licenses
Streamlined Application Process
API Processing tremendously simplifies the application process for both types of licenses by managing the process from start to finish. We assist in gathering all necessary documentation, completing application forms accurately, and submitting them on your behalf. This reduces the time and effort required to navigate the complex application process.
Guidance and Support
API Processing also provides expert advice and offers consultation services that help you understand the nuances of each license so you can make an informed decision. Additionally, we resolve common issues, such as incomplete applications, missing documents, or clarification of requirements, ensuring a smoother application process for you.
Ongoing Compliance and Renewal Assistance
In addition, API Processing helps you maintain compliance by monitoring renewal dates and ensuring timely submissions to avoid penalties or lapses as well as keeping you informed about changes in regulations or requirements. This ongoing support is crucial for contractors who want to focus on their projects without worrying about administrative tasks.
Contact API Processing today at 1-800-947-6939 or click here to learn more about how we can help you obtain and maintain your contractor license!