A constructor license allows a contractor to legally accept and complete contracting work. Prior to the issuance of their licenses, all construction contractor applicants are required by Florida law to prove that they are both financially accountable and stable. As per the Construction Industry Licensing Board, a contractor is considered to be financially accountable and stable if:
- The applicant has a 660 FICO derived credit score or higher, or submits a licensing bond or irrevocable letter of credit
- The licensing bond or letter of credit must be maintained until the applicant has achieved a FICO credit score of 660 or higher
- There are no open liens against the applicant or the company he or she intends to qualify
- There are no outstanding judgments against the applicant or the company he or she intends to qualify
It is vital for every applicant to submit a personal credit report and a credit report for the business that he or she intends to qualify. Furthermore, the credit report must be from a nationally recognized credit reporting agency. The surety will then run the credit report as part of the underwriting process.
When a contractor is hired to perform a project, it is essential that he/she is both licensed and bonded.