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IT Management and Cyber Security for General Contractors
The general contractor job description encompasses every aspect of building construction, whether it is new construction, remodeling, or renovation. General contractor responsibilities include coordinating with subcontractors, managing employees, setting deadlines and budgets, and obtaining appropriate building materials. Contractors must also manage client expectations, troubleshoot the project, resolve emergencies, acquire needed construction permits, and ensure every part of the build is up to code.
Every facet of the general contractor job description involves information, people, other businesses, and government entities. This information is vital, personal, sensitive, and valuable. It must be safeguarded from intruders who would use it for their own gain without thought for the direct harm it would cause the individuals and businesses involved, including the general contractor who is responsible for protecting project information.
IT management and cybersecurity are critically important for the general contractor. Project management for the general contractor encompasses schedules, materials, services, permits, and, most importantly, people. When a cyber-attack steals client, subcontractor, and vendor account information, it hurts people.
Data is the heartbeat of modern business. A data breach can destroy a small company or squeeze the life out of a new business. Insufficient cyber protection is not only highly risky, but it could also be disastrous.
What is the cost of a successful cyber-attack on small businesses?
The impact of a cyber-attack upon a small business will be felt differently than an attack on a large business. The scale of size may mitigate the effects on the larger business even though the actual cost to repair, replace, and a reboot may be vastly more massive than the expense to the smaller business. The damage caused by a breach can put a significant dent in a business’ bottom line. Size does not matter because the attack still inflicts budgetary pain. The intensity and longevity of that pain depend on the nature and extent of the attack, the IT management solutions in place to deal with the catastrophe, and other less noticed impact zones.
According to one source, “The average security breach on a small business will cost about US$38,000, according to a study from Kaspersky Lab. The amount includes the costs of downtime, lost business opportunities and the services the company will need to hire to mitigate the cybersecurity breach. Small businesses pay, on average, about $10,000 in professional services, including the hiring of IT security and risk management consultants, lawyers, auditors, accountants and public relations consultants.”
The effects of a security breach are both visible above the surface and obscured below the surface.
Further delineating the tangential, but profound impacts on small business, the assessment continued, “Downtime costs for smallish businesses hover around $23,000 and lost business opportunities about $5,000. Many of the victims will spend about $8,000 trying to ensure a similar incident doesn’t happen again with investments in new staff members, cybersecurity training for existing employees and making upgrades to its IT infrastructure.”
Estimates are that the direct financial impact on a larger business is even more costly, where the average cybersecurity breach costs about $825,000 which is many times more than the cost for a small business.
While the impact of a cyberattack will be felt differently by small and large businesses, the damage caused by a breach can create a significant dent in a business’ bottom line, no matter its size.
What companies are required to publicly report shapes much of the popular understanding as to the cost and impact of a cyber-attack. Some examples of security breaches that make the news are payment data, personal health information (PHI), and the theft of personally identifiable information (PII). Costs related to customer notification, credit monitoring, and the possibility of legal judgments or regulatory penalties are lower profile, but they are real threats.
Rarely put on public display are instances of data destruction, espionage, intellectual property (IP) theft, attacks on core operations, or attempts to neutralize critical infrastructure. These types of attacks can inflict a more significant injury and lead to additional costs that are more complicated to determine accurately.
The general contractor is an information hub. A successful cyber-attack on this hub is like striking an informational motherload. As the gatekeeper for client, subcontractor, and vendor data, the general contractor has a fiduciary responsibility to protect their data. A managed IT solution is the only and best solution. Will it be an ounce of prevention or a costly pound of cure?
For more information about acquiring a general contractor license or learning how to become a contractor, contact Contractors Reporting Services at (813) 932-5244.
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CRM Tools Bring a Competitive Edge to General Contractors
One of the most important keys to success as a general contractor is leveraging technology to multiply efforts, increase efficiencies, and improve communication. The right tools can facilitate general contractor licensing, filing annual reports, keeping the workers’ compensation exemption renewed, following lien law, pulling permits, and filing a notice of commencement. The general contractor must also consider the marketing aspects of what they do. If there is not a next client, then there is not another project.
Client acquisition and customer relations management are a vital dimension of being a general contractor. If a general contractor is to repeatedly and consistently succeeds, they must perform well in many areas and at all levels. Technology facilitates compliance and enables scaling. The proper technology will empower general contractors to multiply themselves, multiply projects, verify compliance, and grow profits.
The maxim “Plan your work and work your plan” is technology encapsulated. Technology empowers planning, organization, execution, accountability, and follow-up. Competency in each of these areas is mission-critical for success in an industry where attention to detail and data management directly impact ROI. A project is not successful unless it is completed on time, on budget, and according to client or customer specifications. CRM helps achieve success at all levels.
What is a CRM?
A CRM or customer relations management tool is a planning, organizational, and management tool that has the potential to launch a general contractor to the next level of performance and beyond.
A business management software solution may already be in place and in use to handle day-to-day project needs. It may have a CRM component or platform. The reality is that most CRM’s are underused or not used at all. The following seven benefits should compel the savvy general contractor to adopt a CRM platform to manage their many projects.
View the client and project pipeline at a glance
A CRM organizes client data into a visual format that can be digested and understood at a glance. From leads to prospects to clients to subcontractors to vendors to projects, see the sales and project pipeline and which potential projects are about to solidify. Licensing, permitting, and compliance schedules can be managed on an individualized project level and can be viewed at a glance. Failing to pull a permit or allowing a contractor’s license or certification to fall through the cracks or lapse could be painful to resolve.
Spend less time managing client data and more time managing projects
Automation does the heavy lifting and allows for instant scaling.
Enhance client service
Tracking client and subcontractor communication in a single location is valuable to both the general contractor, the subcontractors, and the client. From an internal perspective, CRM makes it easier to share information with the team. With a cloud-based CRM, the team can securely store and access data from anywhere on their smartphones. Team members with access can make notes on a potential client’s file, adjust estimates, request specific materials, and move opportunities from one stage in the pipeline to the next.
Remind the team to follow-up on details and the progress of the project
Being a general contractor involves acquiring clients and serving client and project needs. A worthy CRM tool facilitates client acquisition and project organization and implementation. For the specific details of a project or subproject, a project management tool is highly recommended. A CRM and project management combination can be the best solution.
Forecast revenue more accurately
Tracking the acquisition of a new client and the project progress is essential for cash flow. Cash flow is arguably one of the greatest struggles for a small business. Overcoming the cash flow challenge marks a significant achievement in the management of a business, especially in the area of construction.
Use data-powered insights to finetune the client-to-project process
A CRM can reveal insights about the overall process. With data stored in a central location, patterns emerge from that might not have been noticed. Seeing each sales opportunity in the pipeline from new leads and contacts to project initiation exposes stall points that can be addressed and remedied. The launch of the project can be expedited.
Collect better ROI on marketing dollars
General contractors who want to grow must do some form of marketing. Whether the marketing is informal or formal or analog or digital, knowing where every marketing dollar was spent and then being able to assign results – leads and conversions – to those dollars is extremely valuable, especially as a company grows and scales to accommodate that growth. Knowing the source of the best results can help a general contractor know where to push the marketing dollars. Money well spent yields solid results that convert into clients with construction projects.
Technology is the force multiplier in the highly competitive and margin-sensitive general contracting industry. The ability to manage, analyze, and interpret client and project data informs critical decisions that determine whether a project will be profitable. Ensuring that all documentation, licensing, and compliance issues are managed in a timely and accurate manner is mission-critical for success. General contractors who embrace the power of a CRM tool will win in all areas and at any level.
To learn more about Florida contractor license requirements, contact Contractor Reporting Services by phone at (813) 932-5244.
The post CRM Tools Bring a Competitive Edge to General Contractors appeared first on Contractors Reporting Services.
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Filing a Mechanics Lien in Florida
Florida law offers strong lien rights for general contractors and suppliers. Providing that correct paperwork is in place if a contractor isn’t paid for a job, they are able to file a lien to receive payment as well as protecting themselves. In cases of non-payment, there are requirements that need to be fulfilled and a strict process followed.
These are 3 important things you need to know about the mechanics lien law in Florida:
1) The Notice to Owner is a Strict Requirement
A preliminary notice (referred to as the Notice to Owner) needs to be delivered as soon as possible after the first labor or materials are provided. For parties who do not contract directly with the property owner, they must serve a Notice to Owner within 45 days of providing labor or materials to the project. The two exceptions are for individual wage-laborers as well as design professionals (such as architects and engineers) who are not required to send an NTO.
There is also provision for property owners to request a list of subcontractors and suppliers from the general contractors. If the general contractor receives this request, they have 10 days from when the request is made to supply the list of subcontractors and suppliers that they have hired for the project.
Who receives the notice?
If you have been hired by the general contractor, the notice should be sent to the property owner.
If you were hired by a subcontractor, the notice should be sent to the property owner and the general contractor.
For those hired by a sub-subcontractor, the notice will need to be sent to the property owner, the general contractor as well as the subcontractor.
If you are involved in a construction project, and you don’t know who these parties are, help is at hand. Florida’s Notice to Owner law means that you can rely on publicly available information.
Importantly, when sending the Notice to Owner in Florida, it must be sent by Certified Mail, and a Return Receipt must be requested.
2) A Mechanics Lien Must Be Filed Within 90 Days From the Last One Doing Work (This Excludes Warranty Work)
Florida lien law is different from many other states in that mechanics lien claimants must record mechanics liens within 90 days from the last day that they did work on the project. The 90-day period starts from when the substantive portion of the work has been completed and does not include the correction of deficiencies in work, or warranty work. In the case of equipment rental companies, the count down starts from the last date that the equipment was on-site and available for use.
In most cases in Florida, the mechanics lien must be recorded with the Clerk of Court where the county maintains property records. The exception to this is where the county has a designated County Recorder who is responsible for property records. Before filing your lien, determine where it needs to be filed so that there is no confusion, and the lien is filed within the deadline.
3) Not All Parties Have Lien Rights in Florida
Mechanics lien law provides lien rights to general contractors, subcontractors, material suppliers, laborers, professionals, and equipment rental companies. In Florida, there is no requirement that you have a written contract in place in order to file a mechanics lien. But the following parties do not have rights to file a mechanics lien in Florida:
Suppliers to suppliers
Suppliers to sub-sub contractors
Sub-sub-subcontractors
Maintenance workers
Parties who should be licensed in Florida, but are working without a license
Contractors Reporting Services in Tampa, Florida, specializes in assisting clients with when, where and how to file a mechanics lien. Trust them to help you with the paperwork while you focus on fulfilling your contracts and securing new ones.
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The Types and Requirements for a Florida General Contractor License
If you’re interested in becoming a general contractor in Florida, you need to be licensed to perform construction work legally. There are two primary licenses to choose from which will allow you to perform general contracting work either throughout the whole state of Florida or only in a specific local jurisdiction. In both cases, the licensing is done through the Florida Construction Industry Licensing Board (which operates under the Florida Department of Business and Professional Regulation.) These agencies have established the requirements for getting a general contractor’s license in Florida.
A contracting company will also need to register with the appropriate agency (after determining their business structure), in order to become licensed for tax numbers.
It seems like there is a lot that needs to be done, but these are the most important steps:
Understand the Application Requirements for a Florida Contractors License
There are different license types and your choice will depend on which contractor license you are looking for but, in general, you will need to:
Be eighteen years or older
Have proof of your financial solvency, including a FICO credit score of over 660 (if it is lower, you can purchase a surety bond).
Scan and comply with electronic fingerprinting (there are a number of approved Livescan Device Vendors)
Pass your Florida State Construction Exam
Fill out your application
Pay all applicable fees (including application and licensing)
Provide proof of general liability insurance, and workers’ compensation insurance
Choose the Type of General Contractor License and Meet Additional Requirements
There are two types of general contractors’ licenses available in Florida:
A Certified License
This is valid throughout the state, so you are permitted to work anywhere in Florida.
A Registered License
This limits you to working within a local jurisdiction and you will also need to have been issued a certificate of competency by the jurisdiction.
From there, you can then apply for a more specific contractor’s license. As a general contractor, the most important ones to consider are:
Building contractor – for commercial or residential buildings over three stories high, this license allows you to work on construction, repair, remodeling or improvements.
Residential contractor – for dwellings of between one and three families that are no more than two stories high, you can work on construction, repair, remodeling or improvements.
General contractor – there is no limit on the improvement of any structure or building type and you can carry out construction, repairs, alterations, remodeling, and improvements.
Applying for a Certified General Contractor License
It is possible to apply for a general contractor certified license either as an individual contractor or as a qualified business. Applicants are first required to pass the state certification examination, and once that has been passed, the application for licensure can begin.
Tasks include:
Downloading and completing the Florida State Construction Examination application.
If the exam is passed, downloading and completing the application packet (for either an individual or business).
Provide additional documentation including a FICO approved credit score, and proof of education and experience (applicants must have four years of experience or a combination of college and experience).
Undergoing a background check including fingerprinting.
Securing general liability and property damage insurance.
Securing workers’ compensation insurance (or being granted an exemption within 30 days of receiving a license).
Getting a general contractor’s license in Florida doesn’t need to be complicated or difficult. Partnering with Contractors Reporting Services in Tampa, FL, makes the process simple and smooth-sailing. With many years of experience in the industry, they’ll take care of the applications and paperwork so that your general contracting business gets up and running quickly.
The post The Types and Requirements for a Florida General Contractor License appeared first on Contractors Reporting Services.
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Filing a Mechanics Lien in Florida
Florida law offers strong lien rights for general contractors and suppliers. Providing that correct paperwork is in place if a contractor isn’t paid for a job, they are able to file a lien to receive payment as well as protecting themselves. In cases of non-payment, there are requirements that need to be fulfilled and a strict process followed.
These are 3 important things you need to know about the mechanics lien law in Florida:
1) The Notice to Owner is a Strict Requirement
A preliminary notice (referred to as the Notice to Owner) needs to be delivered as soon as possible after the first labor or materials are provided. For parties who do not contract directly with the property owner, they must serve a Notice to Owner within 45 days of providing labor or materials to the project. The two exceptions are for individual labourers as well as design professionals (such as architects and engineers) who are not required to send an NTO.
There is also provision for property owners to request a list of subcontractors and suppliers from the general contractors. If the general contractor receives this request, they have 10 days from when the request is made to supply the list of subcontractors and suppliers that they have hired for the project.
Who receives the notice?
If you have been hired by the general contractor, the notice should be sent to the property owner.
If you were hired by a subcontractor, the notice should be sent to the property owner and the general contractor.
For those hired by a sub-subcontractor, the notice will need to be sent to the property owner, the general contractor as well as the subcontractor.
If you are involved in a construction project, and you don’t know who these parties are, help is at hand. Florida’s Notice to Owner law means that you can rely on publicly available information.
Importantly, when sending the Notice to Owner in Florida, it must be sent by Certified Mail, and a Return Receipt must be requested.
2) A Mechanics Lien Must Be Filed Within 90 Days From the Last One Doing Work (This Excludes Warranty Work)
Florida lien law is different from many other states in that mechanics lien claimants must record mechanics liens within 90 days from the last day that they did work on the project. The 90-day period starts from when the substantive portion of the work has been completed and does not include the correction of deficiencies in work, or warranty work. In the case of equipment rental companies, the count down starts from the last date that the equipment was on-site and available for use.
In most cases in Florida, the mechanics lien must be recorded with the Clerk of Court where the county maintains property records. The exception to this is where the county has a designated County Recorder who is responsible for property records. Before filing your lien, determine where it needs to be filed so that there is no confusion, and the lien is filed within the deadline.
3) Not All Parties Have Lien Rights in Florida
Mechanics lien law provides lien rights to general contractors, subcontractors, material suppliers, laborers, professionals, and equipment rental companies. In Florida, there is no requirement that you have a written contract in place in order to file a mechanics lien. But the following parties do not have rights to file a mechanics lien in Florida:
Suppliers to suppliers
Suppliers to sub-sub contractors
Sub-sub-subcontractors
Maintenance workers
Parties who should be licensed in Florida, but are working without a license
Contractors Reporting Services in Tampa, Florida, specializes in assisting clients with when, where and how to file a mechanics lien. Trust them to help you with the paperwork while you focus on fulfilling your contracts and securing new ones.
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3 Frequently Asked Questions About Filing the Notice of Commencement in Florida
When it comes to the filing of the Notice of Commencement in Florida, there are a number of questions that come up most frequently. For general contractors and subcontractors, it’s important to understand the protection that the NOC offers. And for all involved parties, the Notice of Termination has a critical part to play in the ending of the Notice of Commencement, which also has implications for parties involved in the project.
How does the Notice of Commencement protect general contractors in Florida?
The Notice of Commencement benefits general contractors in much the same way as it benefits property owners. Importantly, the NOC designated the start date of the project, posing a strict deadline for the notice requirements that need to be sent by material suppliers and subcontractors. And, if payment issues arise in the future, the general contractor in Florida will only need to deal with the mechanics lien claims of parties that have met the pre-lien notice deadlines.
This would be an issue in the case where a subcontractor leaves the project before completion without settling their dollar-outstanding money (Outstandings) with sub-subcontractors and equipment suppliers. If sub-subcontractors and other project participants had not submitted their pre-lien notices before the deadline, this would have the effect of rendering their mechanics lien-claims null and void. This would mean the general contractor would not be liable for any of the debts that were incurred by the subcontractor.
Why is the Notice of Commencement important for material suppliers and subcontractors?
The NOC has an impact on potential lien claimants for all parties down the contracting chain from the subcontractor, sub-subcontractor and more. In addition to its other important roles, the NOC contains almost all of the information that will be needed if pre-lien notices need to be filed. Specifically, the mechanics lien itself is found on the Notice of Commencement.
The Notice of Commencement also contains the names of the property owners along with their contact information. So, in the case of filing a mechanics lien, these parties will need to be served and having the correct information is important.
The NOC also contains the official starting date of the project. This date forms the base from which preliminary notice deadlines can be calculated as knowing when to issue pre-lien notices is critical for protecting lien rights.
Payment issues come up regularly in the construction industry, so a carefully planned timetable for potential mechanics lien-claims is a good precautionary step.
Is it possible to terminate a Notice of Commencement and how is it done?
In Florida the Notice of Commencement can be terminated. This happens when a property owner experiences financial issues, or in the situation where they wish to terminate all, or in some cases, part of the construction.
If an NOC is to be terminated, the property owner will need to:
File a Notice of Termination including the same information that was included on the NOC
Specify the date when the commencement notice will be effectively terminated in the Notice of Termination
State clearly in the Notice of Termination that all claimants have been paid in full
Serve copies of the Notice of Termination to the general contactor and all other claimants before the Notice of Termination is recorded.
For a full understand of the process for terminating the Notice of Commencement in Florida is available on Section 713.132 of the Florida Statutes.
Contractors Reporting Services in Tampa, Florida offers help for property owners and general contractors by providing assistance with the paperwork allowing their clients to focus on getting the job done.
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Importance of Following Lien Law and Filing the Notice Commencement
Within the construction industry in Florida, deadlines and time frames are strongly enforced which means that general contractors need to have their paperwork in order. It’s also important for keeping the project on track, for example knowing the start date of a project is important, but how does one know the exact date? It’s available in the Notice of Commencement.
What is the Notice of Commencement?
The notice of commitment, also known as the “Affidavit of Commencement” or the “Notice of Project Commencement” is an official document that declares the starting date of a construction project. It’s the same day that the contractor, subcontractor, or support can start providing labor and materials for the project.
The NOC is thus an announcement that a project has started. It also contains information that is useful for different stakeholders at various stages of the project.
An NOC will usually contain:
The property owner’s name and address
A description of the property and the full address
A brief description of the work that is to be done
The general contractor’s name, address and contact information
The contractor’s surety information
The lender’s information
Details of the property owner’s legal representatives
The expiration date of the Notice
The property owners’ signatures (helpful if payment issues arise)
For general contractors in Florida, this information, as well as the signatures from the property owners, is very important. The information can be used if payment issues arise. Additionally, pre-lien notices (such as the Notice to Owner and the mechanic’s liens) will rely on this information. It is therefore recommended that general contractors, as well as subcontractors and suppliers, take note of the information provided in the Notice of Commencement.
Who files the Notice of Commencement?
The NOC is typically filed by the property owner, and in some cases, the general contractor. It is served just before or just after work is carried out on a project. It must be officially recorded at the local state office where the project is based, in Florida.
It must be signed by the property owner, and their legal name must be stated on the NOC. That person will also be required to sign the document. In situations where there are multiple numbers, for full compliance, it is recommended that all property owners provide their signatures.
Why is a Notice of Commencement Filed?
The lien laws in Florida explicitly require the property owner or the general contractor to file a notice of commencement. And in Florida, the Notice of Commencement is the starting point for the mechanic’s lien process. The information found on the NOC will be used to fill pre-lien notices by participants on the project because a Notice to Owner is a legal requirement in Florida.
The NOC also allows a general contractor in Florida (as well as subcontractors and suppliers) to schedule the filing of other important documentation. For example, the preliminary notice needs to be sent within the first 15 days of the project, and that 15-day count begins on the date recorded in the notice.
Are There Consequences if An NOC is Not Filed?
In Florida, the general contractor will not be able to secure a building permit unless they are able to produce a correctly filed NOC. It may also lead to double payment for the property owner if the contractor leaves before paying subcontractors and suppliers because, without an NOC, the property owner will have violated Florida’s rulings on mechanics liens. This will then make them responsible for all payments to stakeholders even if the contractor has been paid in full.
Contractors Reporting Services in Tampa, FL, understands the importance of filing all required paperwork correctly and on-time. They help general contractors and other construction stakeholders ensure that all the documentation for a project is in order to ensure that their clients can focus on the project, rather than papers.
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Answering Questions for Prospective Vocational Rehabilitation Vendors
Vocational Rehabilitation (or VR) is a federal-state program. The program aims to help people with physical or mental disabilities to find and hold down a job. VR is focused on helping people with disabilities establish meaningful careers.
For individuals to become eligible for VR services, they must:
Have a physical, mental, emotional or learning disability that is a barrier to gainful employment
Need VR to help prepare the individual to gain or keep employment
Be able to benefit from the VR services
What is a Vocational Rehabilitation Vendor?
Vocational Rehabilitation vendors are individuals or business that makes their services available to VR customers that will help contribute to the goal of employment. This includes services such as medical services, opportunities for training, and specialized equipment. Vocational Rehabilitation will register all vendors from whom services are purchased for VR customers.
What are the Different Types of Services That Vocational Rehabilitation Offers?
As per their website, Vocational Rehabilitation offers:
Medical and Psychological Assessment – to determine what the client needs in terms of medical and psychological support
Vocational Evaluation and Planning – to determine what the client is capable of, and take steps to meet that potential
Career Counselling and Guidance – here, vocational counselors will talk with VR clients to determine skills and interests and define work goals.
Training and Education After High School – this can include programs and classes that teach specific job skills,
On-the-Job Training – including vocational training, clients, receive the skills they need to pursue a specific career
Supported Employment Services – such as a job coach to help the client manage the requirements of their position
Assistive Technology and Devices – special devices and accommodations will be provided to do the job. This includes enlarged print, TDD or raised desks for a wheelchair.
What Kind of Remuneration Can Vendors Expect to Receive?
For healthcare-related services, Vocational Rehabilitation follows the amount payable as outlined by the Medicare Part B system. Per diem payment for hospitals are paid according to the amount payable under the Medicaid system. For all other services, the VR sets its highest allowable fee such that the fee is not too low to deny individuals the right to make an informed choice for themselves.
How Can Businesses and Individuals Register as VR Vendors?
Vendor registrations is a 3-step process:
The prospective vendor must register with MyFloridaMarketPlace (MFMP),
They must then submit an electronic W-9 with the Department of Financial Services (DFS),
Lastly, they must register with VR
Do All Vendors Undergo Background Screening?
All individuals who provide direct services to VR customers are required to register with the Agency for Health Care Administration (AHCA) Care Provider Background Screening Clearinghouse (CLH). Here they will need to submit to and pass level 2 background screening.
Once the application to provide VR services is approved, the vendor will be sent an email with the instructions for background screening. This is done via email and will assist with the fingerprint registration process.
What are the Next Steps After the Application Has Been Submitted?
If all three steps have been completed, the processing time is around ten business days. This does not include the time taken for background screening.
To check your application status, allow ten business days before enquiring, after which time an email can be sent to verify the status. Once the application has been processed, a registration determination will be made (either Approved, Denied, or Incomplete), and the prospective vendor will be notified of their status.
Contractors Reporting Services in Tampa, FL, helps clients to register and get approval as Vocational Rehabilitation Vendors. Their experience in working with the program ensures that they can efficiently and effectively process their clients’ applications, giving their clients the best chance of being approved.
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How to Find the Best General Contractor for the Job in Florida
Before starting work on a renovation, extension, or building project in Florida, someone with a valid general contractor’s license will need to oversee the project and hiring the right person will be the
first thing that needs to be done. This is one of the most important steps and shouldn’t be rushed. The individual should have the right credentials, they need to have a valid license, and they should also have the right experience to be able to complete the job successfully. Once the general contractor for the project has been hired, they will then be able to hire the relevant sub-contractors, including plumbers, carpenters, and electricians.
There are two main checks that should be done before hiring a general contractor:
1. Check That the General Contractor’s License is Valid
In Florida, the regulation of general contractors is overseen by the Florida Department of Business and Professional Regulation (DBPR), and they have all the licensed contractors listed online on MyFloridaLicense.com. It is possible to search by Licensee Name, Licensee Number, by City or County, or by License Type. Simply navigate to the website, type in the details, and search. For a more general search, the best option is to search by city to receive a list of licensed contractors.
Check the Details of the License
The results will show the type of license, the license number, and the status. Pay particular attention to the status – it should be Current, Active (not Revoked, Null and Void or Suspended). By clicking on any of the results, it is then possible to see the contact details – check those against those that the contractor has provided you with, as well as the license information including the licensure date (when the license was first granted) and the date of when the license expires.
Check That There are No Complaints Against the General Contractor
At the bottom of each listing, there is a link to view any complaints that have been filed against the general contractor. Have a look to check that everything is in order, and there are no outstanding or unresolved issues.
2. Ensure That the Contractor Has a Good Track Record
The best way to ensure that a general contractor with a valid license will be a good fit for your job is, after verifying their credentials, to look at previous work and talk to past employers. People who have worked with the contractor in the past will be able to verify that they:
Completed the work to specifications and within budget – it is a good sign if the general contractor can complete work as required and that the project isn’t likely to run over budget.
Conducted themselves professionally and stuck to timelines – having regular feedback and milestone completion can help to keep the project moving along according to schedule.
Hired sub-contractors who were proficient and licensed – hiring quality subcontractors can make the difference between a project that is a success, and one that doesn’t have a good outcome.
Have the relevant experience to complete the job – it’s helpful if the general contractor has successfully completed jobs that are similar to the new project as it increases the chances that the new project will go well.
The final check is to ask whether the previous employer would recommend the contractor and why. There may be considerations on the current project that have not yet been envisioned, and a previous employer may bring something to light that will have implications for the new project.
Contractors Reporting Services has been helping contractors with their general licenses in Tampa, Florida for many years and their team has the relevant experience to help you stay up to date with licensing requirements, whether you need help with the application or renewal process
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Paperwork that a Florida General Contractor Needs to Have in Order
To perform general contracting work in Florida, you need to hold a contractor’s license. There are two options: to be licensed throughout the whole state or to work only locally in your jurisdiction. Both licenses are processed by the Florida Construction Industry Licensing Board. The board operates under the Florida Department of Business and Professional Regulation (DBPR). So, in order to hold a valid general contractor license in Florida, the contractor will need to adhere to the requirements set out by these agencies.
General Contractor License Types in Florida
There are two types of licenses that you can apply for that both fall under the Department of Business and Professional Regulation in order to operate as a general contractor.
1. Certified License
A certified general contractors license is valid throughout the state of Florida, permitting the license holder to work anywhere in the state.
2. Registered License
This license is more limited as the contractor is only permitted to work within specified local jurisdictions. To qualify for a registered license, the holder will need to have been issued a certificate of competency by that jurisdiction.
There are also various, more specific contractor licenses that fall under these classifications. In particular, a general contractor may wish to apply for the following additional licenses:
Building Contractor – this license is for construction work that includes the repair, remodeling, and improvement of commercial and residential buildings that are more than three stories in height.
Residential Contractor – this license allows for the construction as well as repair, remodeling, and improvement of homes for between one and three families, lower than two stories.
License Requirements for the Contracting Company
Once you have a valid general contractor license, it is important to establish a company. Establishing a contracting company will usually need to be done either as an LLC or an S-Corporation, depending on the specific requirements of the business. Here, a company such as Contractors Reporting Services can assist with advice on what processes need to be followed and how to file papers correctly. All corporations and LLCs (as well as non-profits and partnerships) have to be registered through the Florida Division of Corporations.
As a business operating in Florida, the general contractor will need to register for tax identification numbers as well as licenses and permits. This includes income tax withholding, sales, and use tax as well as unemployment insurance tax. It’s advisable to speak with a qualified person to ensure that all relevant licenses and documents are in order.
Workers Compensation and Exemption
General contractors need to carry Worker’s Compensation Insurance for their employees through either the Florida Worker’s Compensation Insurance System, a commercial carrier or on a self-insured basis. This is to protect employees from lost wages, medical bills, and other possible unexpected expenses that can arise as a result of an injury on the job.
It is also possible to apply for an exemption if you are an officer of a corporation. To apply for the exemption is a straightforward process – the exemption applicant simply needs to complete and submit a Notice of Election to be Exempt application online. This can be done on the Florida Division of Workers’ Compensation website.
For a general contractor, the licensing and permit requirements for a construction business can quickly become time-consuming and overwhelming. This is why many general contractors in Florida choose to work with Contractors Reporting Services in Tampa, Florida. Contractors trust them to take care of the paperwork and smaller details so that they are freed up to focus on building their business and looking after their clients.
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The Role and Requirements for a General Contractor in Tampa, Florida
Many homeowners in Florida are comfortable with hiring a handyman or specialist for specific home-related jobs. This would include smaller tasks such as replacing a toilet, laying new flooring or installing a generator. Yet, for bigger jobs, such as a kitchen remodel, the work quickly becomes significantly more complicated. In projects such as this, several specialists are hired to complete the different parts of the job. However, most jobs build on one another and therefore must be scheduled in a particular order. It is the responsibility of the general contractor in Florida, to schedule each specialist in the correct order and to ensure that all jobs are completed with ease and success. Each subcontractor, from the plumber, to the flooring specialist, to the person fitting the cupboards, needs to be managed and coordinated correctly.
The Role of a General Contractor
This is where the skills of a general contractor come to the forefront. It is their responsibility to assess the full scope of the project from the very initial meeting with the homeowner. The GC is responsible for devising the project plan to ensure its successful completion within the estimated timeframe and budget.
General contractors also serve as the primary point of contact for all subcontractors and the client. To manage this successfully, you will need to have a good understanding of all aspects of home remodeling and be able to answer any questions that the homeowner has. This includes insights into the specific types of needed building materials and the skill level and number of workers that will be required for the job. You will also need to manage the client’s expectations by providing a realistic timeline for completion as well as pulling the necessary building permits. This will ensure the project is completed safely and within specifications.
Why Up-to-Date Paperwork and a Contract is So Important for a General Contractor
A contract is a binding legal agreement guaranteeing a service between two (or more) people. As a general contractor, when you sign a contract, you agree to fulfil the demands of that contract. In the case of a home re-model, as the general contractor, you are in-charge of the construction site. You should use the contract, that both you and the client have agreed to, as a blueprint or reference for all aspects of the job.
The goal is to meet the terms of the contract and ensure that the client is satisfied with your work. In the event of a dispute with the client, having a robust contract in place will govern the specifics and hopefully clarify any discrepancies over what was agreed upon.
Nevertheless, the contract will only be valid if your paperwork is up-to-date. This may mean pulling the relevant permits and filing for licenses, renewals and annual reports yourself. Many general contractors in Florida choose to work with Contractors Reporting Services to manage their paperwork needs. We work hard to ensure that all documents are current and in place, so that you can focus on running the day-to-day operations of your business.
Ultimately, as a general contractor in Tampa, Florida it is your job to oversee the daily operations of a project as well as operating as the point of contact for all parties. Your overarching goal is to complete the project according to the specifications of the signed contract while ensuring that all necessary paperwork is in order. This will guarantee that the contract is valid and will safeguard your business in the event of a dispute.
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The Best Way to Win the Job as a General Contractor in Florida
Your job as a general contractor in Florida is to simplify the construction or remodeling process for the homeowner. In many cases, homeowners have had a bad experience or have heard horror stories by a friend who’s had a remodeling project go badly. This is usually due to an unreliable general contractor. Therefore, the best way to win a job is to build the customer’s confidence in your business. They are more likely to choose your services if you answer their questions, ensure your paperwork is in order, share good references, offer a written estimate and set up clear terms of payment.
1. Answer All Their Questions Quickly and Efficiently
The way that you conduct yourself in your dealings with the client, gives them a good idea of what they can expect for the rest of the project. Prior to the homeowner signing with you, ensure that you answer all their questions as fully and as quickly as possible. This will allow the client to see how you will conduct yourself as their advocate once the contract has been signed.
Answer all questions thoroughly and make it easy for them to understand. Homeowners want to be confident that they comprehend the implications for the project. For example, they want to know their expected cost and the estimated timeline for the project. Be as transparent about the whole process as possible, so that your client feels comfortable moving forward with you at the reins.
2. Ensure That All Your Paperwork is in Order
A homeowner or building owner, especially for larger projects, will do their due diligence researching your company. Therefore, it is essential that you have all your paperwork in order. This means ensuring that you are up to date with all licensing and insurance requirements. This can be managed yourself or outsourced to experts such as Contractors Reporting Services. The necessary documents include:
· Local license registration and renewals
· Workers compensation exemptions
· Workers compensation coverage
· Financial stability reviews
· Corporation set-up and amendments
· Annual reports
· Business tax registrations and renewals
3. Share Your Best References
Your client is trusting, when they sign a contract with you, that it is going to be a stress-free experience. You can move them closer to signing by supplying written and telephonic references if necessary. By being pro-active in this part of the process you gain more control over who the client listens to, as well as reinforcing why your business would be the best choice. Draw up a list of good references in advance and share contacts who are relevant when asked. Relevant contacts would be the satisfied clients for whom you have completed similar work in the past.
4. Be Willing to Offer Estimates in Writing
Offer a free estimate in writing and provide it to the client as soon as possible. Be sure to include as much detail as you can, so that when the client is comparing quotes from different contractors, they can make direct comparisons for like services. Here you should include a list of products to be used (be specific including product names and part numbers for premium products), the services that are included and the cost of labor. You should also be upfront about the project’s timeline and any milestones.
5. Set Up Clear, Fair Payment Terms
When setting up the terms of the contract, one way you can grow the client’s trust is to clearly and systematically detail how and when they will need to pay. Typically, at the start, you would request a percentage be put down by the customer and then payments would be released in increments as the milestones are completed. A sign of a reputable contractor is being willing to work until the job is complete prior to requesting the final payment.
By following these five best practices, as a licensed general contractor in Florida, you give yourself the best chance of being chosen as the winning bid for a contract.
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5 Ways to Outsource Your Paperwork as a General Contractor in Florida
Contractors Reporting Services in Tampa, FL leads the way in helping general contractors run their construction business. From assisting with Florida contractor’s license requirements and sharing insight into how to become a contractor, they offer an end-to-end service for general contractors.
As a licensed general contractor you have more than enough to deal with on a daily basis without the additional stress and headaches of paperwork. While you understand the importance of filling the annual reports with the Secretary of State and keeping your workers’ compensation exemption renewed, it can be difficult to fit these tasks into an already packed day.
Application Service for Your Florida General Contractor License
Once you have passed your State exam in Florida, you will need to provide specific application information for that trade. You can use an Initial Application service to help you obtain your general contractor license quickly and efficiently to avoid any delay.
Financial Stability Reviews and Reporting
These reviews and reports include checking public records at the County, State, and Federal levels. Both the State as well as the relevant local County or City municipalities will approve these reports. They will be completed by Contractors Reporting Services within twenty-four hours of receiving the information.
Corporation or LLC (Limited Liability Corporation) Formation
This does not need to be an expensive undertaking. In stark contrast to other overpriced websites, Contractors Reporting Services offers an affordable solution. Friendly, professional staff offers a customized solution and the personal attention that you need. We’ll answer all your questions and deliver the right solution for your business, setting you up as either a C-Corporation or S-Corporation.
Registration and Renewal of Licenses
It can be difficult to keep track of when and how to renew State and Country licenses. In order for a general contractor to remain in compliance with State Statuettes and Local Codes, an outsourced service is invaluable.
Additional Entities
We can assist If you hold a general contractors license for one company and wish to qualify a second, or in the instance where you hold multiple licenses and wish to qualify a separate company with any of your licenses. This has to be applied for under Additional Business Guidelines which can be frustrating and confusing to navigate.
Filing of Annual Reports
It is a requirement that construction companies file annual reports each year to renew or maintain their active status. Failure to file reports accurately or on-time for a Corporation or an LLC will result in a penalty of $400 that cannot be waived.
A Specialised In-House Construction Accounting Service
We have an in-house accountant available who offers a free review of your current accounting and tax returns. The purpose is to identify areas where you can save money in taxes. Our team also offers a free QuickBooks class on how to operate and better understand QuickBooks and use it for your business.
Running a business as with a general contractor license is stressful. There are always fires that need to be put out as well as logistical, structural issues, scheduling problems – more than enough to keep you busy. At Contractors Reporting Services in Tampa, FL, we’ve been helping businesses in the construction industry take care of the paperwork along with licensing and approval processes for more than 50 years.
Join hundreds of other satisfied customers by letting us assist with procedures and approval processes for your business. And let us deal with the various government organizations and changing requirements. This will ensure that you’re always up-to-date so that there is no risk of delays or annoying inquiries.
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The Top 6 Worker’s Compensation Insurance FAQs for General Contractors in Florida
As a general contractor in Florida, you need to understand how worker’s compensation works to ensure that your business and employees are covered. To help general contractors understand the basics, we’ve answered the top 6 questions frequently asked by our clients.
Who needs workers’ compensation coverage?
Workers’ compensation coverage is needed for all construction employers who have one or more employees (including any non-exempt business owners). And, for non-construction employers, four or more employees (which also includes any non-exempt business owners).
Trades that are considered to be in the construction industry can be viewed in Florida’s Administrative Code.
Do I need worker’s compensation insurance if I hire sub-contractors?
Sub-contractors are responsible for their own insurance that will cover workers in the event of a work-related incident. But it is the responsibility of the primary contractors to ensure that the sub-contractor has coverage for its workers. The contractor is responsible for the payment of benefits if a worker is injured without being protected by insurance.
What proof does a contractor need from a sub-contractor to verify insurance coverage?
For a sub-contractor that has a workers’ compensation insurance policy, before beginning a job the contractor must obtain any of the following:
A copy of the ‘information page’ from the insurance policy
A screen print from the proof of coverage database confirming that coverage is in effect
A Certificate of Liability Insurance along with documentation from either the producer or carrier confirming that workers’ compensation coverage is valid
For a sub-contractor that is a client company of an employee leasing company, the contractor needs to obtain:
A Certificate of Liability Insurance
A list of the employees leased to the subcontractor for the date that the subcontractor commences work for the contractor
For a sub-contractor that has an exemption for the business owner or owners, the contractor needs either:
A copy of the exemption
A screen print of the exemption page from the Proof of Coverage database.
What is the Cost of Workers’ Compensation Insurance?
There are 3 factors that influence the cost of insurance: the type of work being performed by employees, the employer’s claims history and the payroll for the business. There are some discounts that may be made available such as a discount for a workplace safety program (2%) and a drug-free workplace program (5%). These programs need to be renewed on an annual basis in order to qualify for the discount.
What is a Worker’s Compensation Exemption?
An exemption can be filed for an officer of a corporation or member of a limited liability company. The purpose is to be excluded from the workers’ compensation laws. The office or member will not be classified as an employee and cannot claim workers’ compensation benefits once they have been issued a Certificate of Election to be Exempt.
How Do You Apply for an Exemption?
To apply for, or renew an exemption from workers’ compensation law, the applicant needs to complete and submit a Notice of Election to be Exempt application. If the applicant is eligible, this can be done online. It is important to note that the application needs to be personally signed by the applicant attesting that they have reviewed, understood, and acknowledged the information included on the application. It may be considered a felony of the third degree if anyone other than the applicant signs the application.
If you need help with applying for a workers’ compensation exemption or need some assistance with additional general contracting questions, please get in touch with us. Contractors Reporting Services in Tampa, Florida offers reliable results building on reputation and experience of over 50 years in business. We understand that general contractors have a vast range of paperwork that needs to be done from financial reports, licensing or business services, and we’re confident that we can help you tackle them.
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How to Know Whether an LLC or a Corp is the Best Fit for Your Construction Business
There are a number of factors that should be considered when deciding whether to set up your business as a corporate or limited liability company (LLC). This includes the type of work that you do, the number of employees that you have, as well as various tax considerations.
Deciding to formalize the structure of your company as an LLC or corporation has important implications and should only be undertaken when you have a clear understanding of the pros and cons of each. Once you have a general contractor license, and before filing papers, consider getting expert advice to ensure that you make the right decision for your business.
Choosing a Corporation vs. LLC
An LLC (limited liability company) is a hybrid form of partnership that offers many of the advantages of a corporation and a partnership. Profits and losses can be passed through to owners without the business being taxed, and owners are shielded from personal liability.
A corporation can be taxed, held legally liable for its actions and can make a profit. The main benefit of a corporation is the protection from legal liability while two key disadvantages are the costs to incorporate and the extensive paperwork that needs to be filed. An S-corporation (Subchapter corporation) helps avoid double taxation which is a drawback for regular C corporations.
Business Freedom
We find that, for most construction businesses an LLC is the best fit because, while both a corporation and an LLC offer protection for the owner from liability, an LLC offers more freedom in how the business is managed. An example of this is in an LLC’s operating agreement; the company owners can expressly outline the obligations, powers, and rights of the manager and the LLC’s members. These rights, powers, and obligations can also be directly limited if needed.
An LLC also requires fewer formalities than those associated with a corporation. Specifically, annual meetings are not required.
Get Professional Advice and Assistance
If you want to set up an LLC, Contractors Reporting Services in Tampa FL can help. They’ll take out the stress, giving you the space to focus on building your business. Their professional, experienced staff have the expertise you need to get your paperwork handled efficiently. They will help you set up an S-Corporation or an LLC, whichever is the best fit for your needs.
They are also available to assist with ancillary services related to incorporating or setting up an LLC such as:
Corporation Amendments – if any changes are made to the corporation such as changing officers or directors, they need to be registered and recorded the Secretary of State in Florida. Their team will provide fast, stress-free amendment filing so that you can focus on running your business.
Annual Reports – annual reports are required to be filed every year in order for a Corporation or LLC to maintain their ‘active status.’ Failure to file annual reports can have serious implications, not least of which is a non-negotiable penalty of $400 for late filing which cannot be waived. Additional reinstatement fees and penalties can mean that costs to get your business on solid footing will exceed $900.
Annual Minutes – When any changes are made to the structure of the corporation (such as amendments, changes of officers, and stock purchases or sales) the business is required to record them either in special minutes or under the annual minutes of the corporation.
Whether you decide on an LLC or a corporation, provided that they are formed and managed correctly, both will protect the business owner’s personal assets. This means that in the event of a claim or lawsuit filed against the business, only the assets that are owned by the LLC or corporation can be attached. If you have any questions, Contractors Reporting Services would like to be of assistance.
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The Importance of a General Contractor License in Florida
In order to run a profitable, sustainable business as a licensed general contractor in Florida you need to comply with the relevant regulations for the state. This includes holding the correct permits and licenses. Florida State’s licensing requirements are specific and, depending on the nature of your work; you may need a different license in order to work legally.
Contracting without a license in Florida is a serious offense, and the penalties are severe. For this reason, it’s important to understand who monitors compliance, what the different licenses are, as well as the consequences for non-compliance.
Who Monitors Contractor License Compliance?
In Florida, applying for a contractor license is done with the Construction Industry Licensing Board (CILB) headquartered in Tallahassee with field offices throughout the State. They are responsible for licensing and regulating the construction industry. They meet regularly to consider applications, adjudicate on disciplinary cases as well as conducting licensing and discipline hearings.
Their website offers the functionality to perform a Florida contractor license search which makes it easy for all parties involved in a project to verify that they are working with a contractor who holds a valid general contractors license. It’s an important check as it can help protect an owner from having to double-pay, and also reduces the risk of a subcontractor or supplier not being paid by the general contractor. The website also allows complaints to be lodged and has a portal for contractor license applications.
What are the Different General Contractor Licenses?
In Florida the law provides for two different license classifications:
‘Certified’ – a certified contractor license is valid throughout Florida
‘Registered’ – a registered contractor license limits the license holder to specific local jurisdictions.
Certified Contractors in Florida
To become a certified contractor in Florida, one must first pass the Florida State Certification Exam. The content covered depends on whether your application is for a Division I or Division II license.
For Division I license (general building and residential contractors), the exam consists of:
Project management
Contract administration
Finance and business
A Division II exam (for trade-specific contractors such as plumbing, pool installations, drywall, and HVAC), there are two sections:
Business and finance
Trade knowledge
Registered Florida Contractors
Registered contractors must either have passed the Certification exam or hold a Certificate of Competency (which are issued by the local licensing office). Once this exam is passed one then submits a full application to the CILB in Florida along with:
Proof of experience (minimum of 4 years or a combination of college and work experience)
Credit report
Fingerprints (for background checks)
Proof of insurance (both public liability and property damage insurance that must be valid when the application is submitted.
What are the Penalties for Non-Compliance?
The State of Florida takes contract work done without a license seriously. For first time offenders, there is provision for up to a year of jail time or probation. Further offenses are considered a third-degree felony with jail time or probation of up to five years. Also, one can be liable for civil penalties of up to $10,000. An unlicensed contractor will also forgo rights as any contracts are unenforceable by law and liens are no longer valid. Also, if your work is found to be faulty or defective, treble damages can be awarded to the owner (and the contractor may have to return any payments made).
Navigating red tape and state bureaucracy can be frustrating, not to mention confusing. The team at Contractors Reporting Services in Tampa have been helping general contractors in Florida apply for licenses and permits for over 50 years. They’re ready to help you get your paperwork in order and assist with keeping your licensing up-to-date as well as ensuring that your permits are all in order. They understand that you need to be able to focus on building your business, without worrying about whether or not you are in compliance with Florida’s Construction Industry Licensing Board.
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The Importance of Filing Annual Reports with the Secretary of State
There are around 2 million businesses in Florida including many general contractors that are required to file an annual report by May 1st including LLCs as well as limited and limited liability partnerships in order to continue operating as legal entities that comply with the regulations set by the state.
Basic information needs to be updated annually including the primary business location, the officers’ names, as well as the business agent’s details. It is important to note that the annual report does not include financial information but is rather used to update state records. Regardless of whether or not businesses need to make changes, it is still a legal requirement that the annual report be submitted to maintain their ‘active’ status with the Department of State in Florida.
The cost to file depends on the type of business. If the report is filed by May 1st, the costs are $150 for-profit corporations, $138.75 for limited liability companies and $500 limited or limited liability partnerships.
There are important implications for general contractors who neglect or forget to file including late fees, company dissolution and potential loss of business.
Late Fees
Regardless of the business entity that a contractor operates under, they are required to file an annual report. The report must be filed by May 1st otherwise a late fee of $400 applies. Unfortunately, the penalty is automatically applied by the filing system and as such cannot be reduced or waived. A failure to file an annual report can also result in expensive feeds for reinstatement in addition to other penalties that can be more than $900.
Company Dissolution
The state may administratively dissolve the company if it fails to comply with the annual report requirements for a long enough period of time. In Florida, this time is set as the third Friday in September, and dissolution will happen on the following Friday (the fourth Friday of September).
Once this happens, the business may not continue with any of their activities aside from the process of winding up the company. Once a company has been dissolved, an owner’s personal assets are no longer legally protected from business creditors. In effect, this means that owners are personally liable for business debts and judgments.
Loss of Business
Failing to file a company’s annual report will result in forfeiting its ‘good standing’ with the State. This can have a big impact on expansion plans and financing opportunities. In Florida, the Certificate of Good Standing is referred to as a Certificate of Status. If a company is unable to provide the certificate, it serves as an indication that there is something wrong with the company’s standing with the State.
For general contractors, in particular, this can be problematic as it is often a requirement for businesses before they will award a building contract. Lenders may also require a company to be in good standing before it will approve new financing, and the company will be viewed as an increased risk if it is not able to produce the certificate.
At Contractors Reporting Services in Tampa, FL we can help ensure that your general contractor business remains in good standing. We will compile and file an annual report for your business so that you are not exposed to the cost and risks of late filing. Our team will ensure that your annual report is filed correctly and on-time, every time. In addition to filing annual reports, Contractors Reporting Services is also able to offer other business services such as corporation set up, corporation amendments, renewal services, annual minutes as well as business tax registrations and renewals.
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