Our Experience with the New Experience

As everyone knows, the biggest part of an application for a new construction license is the experience section. What experience are they looking for? How much do they need? What do they consider valid experience?

For Division II Contractors, the basics are simple. In the minimum four years of experience that the board requires for licensure, if you have not gained experience in all areas of installation listed on the application then it will go for an automatic board review. They then will review your work history with you and decide whether or not you have the required experience to be able to receive a license.

Division I Contractor applications are a bit more complicated than that. They are looking for four years of experience working for a licensed contractor. To prove this, actual project details must be listed. Each project must meet four of the areas required by the statute. If the projects do not, you can list additional projects so that at least four areas are met for the requisite time frame. If there is any doubt in the reviewers mind, the applications are going straight to the board for further clarification.

College can take time off the amount of experience you need to submit. The board specifies that 1 year of college is equal to 30 earned credits at an accredited college. No matter how many credits you have, you will still need a minimum of 12 months of experience as a foreman.

The board also has provided the minimum amount of hours that 1 year of experience is supposed to be. Each year of experience is to be 2,000 hours of work under a licensed contractor. The intent is for W-2 employment. This way the individual is working legally under a contractor and is covered by all appropriate insurances. Many applicants going before the board are being asked to produce W-2s.

This is not a guarantee in any way that your application won’t go for board review. We are seeing more and more sent for review. They are really cracking down. We can help to avoid certain pitfalls that applicants are stepping into. Call us to discuss these details in depth. We are here to help.

Electrical Rule Changes

Changes have just occurred in the electrical licensing world.  The following rule changes went into effect on Sunday July 17, 2011.  In a nutshell:

·  The Statement of Bonding Limits or Irrevocable Letter of Credit is no longer required.

·  Personal Financial Statements no longer need to be notarized.

·  Forms on the DBPR website have been updated.

Here are the actual statutes now in place at the ECLB.  The crossed-through portions have been removed from the requirements.

61G6-5.003 Requirements for Certification.

 (2) Every applicant must submit:

(a) A comprehensive financial statement reflecting the financial condition of the individual applicant during the previous fiscal year; provided, however, that the statement must have been prepared within 12 months of the date of filing of the application. The financial statement shall include a balance sheet. Unless prepared by a certified public accountant, the financial statement shall be signed in the presence of a notary by the individual applicant.

61G6-5.004 Requirement for Business Organizations.

In order that the Board may carry out its statutory duty to investigate the financial responsibility, credit, and business reputation of an applicant proposing to engage in contracting as a partnership, corporation, business trust, or other legal entity other than a sole proprietorship, an applicant shall be required to forward the following to the Department for review by the Board:

(1) A statement signed and sealed by an officer of a surety company licensed to do business in Florida, certifying that the company would issue a performance or payment bond in an amount of at least $10,000.00 to an applicant for a specialty certification and in an amount of at least $25,000.00 to an applicant for unlimited electrical or alarm certification at the time of application. However, an applicant may substitute an Unexpired Irrevocable Letter of Credit from a responsible financial institution in an amount of at least $10,000.00 or $25,000.00 respectively, in lieu of this requirement.

As always, look to the gals at Licenses, Etc. to help you get through the licensing process quickly and easily.  We are always looking out for what affects you. 

CILB

Chrissi and Lisa were able to attend the May Construction Industry Licensing Board meeting which was an eye opening experience.  They were able to hear discussions and comments as well as rulings made during this procedure.  Hopefully you never have to go in front of the board, but if you do then maybe this will help.

The actual statute that exists regarding financial stability reads that any open liens or judgments stop an application.  This will get you sent to the board where you will need to explain what you are doing to rectify these situations.  They can then choose to ask for a certain amount of money in the bank, to ask that the applicant get a separate financially responsible officer or to deny the application immediately.  A rule has been created that an applicant’s credit score be 660 or above, but at this time that rule is not being enforced. 

When you fill out your application, you are asked to answer questions regarding your criminal history and background.  You are also required to submit to a fingerprint scan that the FDLE and FBI cross reference to their databases.  Anything in your past worst than a speeding ticket needs to be disclosed to the DBPR, and may get you sent to the board.  Crimes less than 10 years old—particularly violent crimes or felonies – are most prone to board referral, as well as previous board referrals.  The board has final say over who has good moral character, which is a purely subjective issue.  An applicant that had been convicted of a felony, but had his rights restored, came in front of the board to ask for his license back and was denied because his experience stated a project during the time he was in jail. 

Another major point of contention for the board is the experience verification section.  They discussed in great detail the amount of experience necessary and what makes up the four story requirement for a Certified General Contractor license.  One gentleman in front of the board had experience in a pump station project where one of the stories was underground and housed equipment.  This was deemed unacceptable to be considered a four story project.  The board gave him the option to receive his Certified Building Contractor license instead. 

Qualifying an additional business is a very involved process and is scrutinized heavily by the board.  They want to make sure that a contractor is not selling his or her license, but is actively involved in both companies.  If the license holder owns more than 50% of both businesses, the application should be approved without going to the board (unless background, financial or other areas show instability).  If the license holder does not own more than half of both, then the board will look at two main areas:  Why do you want to qualify this business?  How are you to be paid for this venture?  If you are trying to qualify two companies that compete with each other, the board sees that as a definite sign that you are selling your license.  As for payment, any individual who was not an owner and was paid by 1099 instead of W-2 was denied on the spot.

Reinstatement of a license after it has become Null and Void is also done by a board review.  Several individuals were at the meeting requesting their licenses be reinstated, but only one was granted.  A hardship endured must be proven to the board’s satisfaction for them to reissue their license.  The two who discussed their divorces did not meet that standard, nor did the gentleman who just had no idea how his license was never renewed.  The contractor who had been wrongly imprisoned in Cuba for a period of time before finally being allowed a liaison from the embassy was the only one to receive his license back.

After seeing all of this, we have several points of wisdom to share with you:

·       You have the right to an attorney.  This can help you know your rights and be able to communicate more effectively with the members of the board.

·       You will be drilled about all of your application, not just the part for which you were sent board.  Be sure that you know your application forwards and backwards.

·       If you ever find yourself in front of the board hearing the words “motion to deny”, immediately stand up and either ask for a continuance or completely withdraw the application.  This will save you from having a record of being denied by the board.

The gals at Licenses, Etc. are constantly on top of the newest rules and regulations to help our clients avoid a board referral if at all possible.  Call us today to find out how we can be of assistance with your next application.  www.LicensesEtc.com

Installed and Honored, Congrats to ALL!

Congratulations to those of you honored at last week’s Collier Building Industry Association Installation held at the Olde Cypress Club in Naples, FL.

Thomas Wegwert is now officially the 2011 President of the CBIA.  All the board members and all council members (for the Sales & Marketing Council, Remodelers’ Council and the Business Builder Council) were installed along with Tom.  Our very own Lisa Adams was one of the associate members to be installed as Secretary of the Sales & Marketing Council.

In addition to the installation, several well deserved awards were distributed to members.  Congratulations to them especially for the recognition they received.  It is because of their dedication to the local building community that our association continues to lead the nation.

CONGRATULATIONS!!!

·         Builder of the Year:  Thomas Lykos of The Lykos Group, Inc.

·         Associate of the Year:  Stacey Herring of Fifth Third Bank

·         Remodeler of the Year:  Bill Varian of Varian Construction Company, Inc.

We are thankful for all of those that work to build our organization and keep the CBIA strong.