Contractors with a credit score under 660 at the time of application for licensure are required by the Florida Construction Industry Licensing Board to obtain a Construction License Bond (aka Contractor License Bond).
Jet Insurance Company provides the Construction License Bond to act as a financial assurance to the Board that license regulations will be followed by the contractor, which includes the payment of all fees and consumer protection from license and contract violations (e.g. negligence, poor workmanship, or failure to uphold a warranty contract). Funds from the surety company may be used to cover a claimant’s financial damages and/or to reimburse the Board for fees owed.
The amount of the Construction License Bond depends on the type of license you are applying for. So, if you are entering a construction field that falls under a Division I license, a $20,000 bond limit is required, while Division II licenses require a $10,000 limit (further details regarding license types and the tiers they qualify under can be found in the next sub-section).
It is important to note that the Construction Industry Licensing Board allows the bond limits to be reduced if you complete a board-approved financial responsibility course. If accomplished, only a $10,000 limit is required of Division I applicants and $5,000 for Division II licenses.
At Jet, the cost of a Construction License Bond is a small percentage of the bond limit and is based on the personal credit score of the contractor. This might be a bit worrisome considering you only need this surety bond due to your less than stellar credit, but the Jet team tries to ensure that all our prices are fair and affordable.
For instance, if you are seeking a $5,000 Construction License Bond, rates start at just $100 for a one-year bond term or a convenient $19 a month. You can find additional limits and Jet’s preferred tier rates in the chart below.
|1 Year Term
Florida Construction License Types
If you are unsure which Division your license falls under, take a look at the charts below.
|Class A Air-Conditioning Contractor
|Class B Air-Conditioning Contractor
|Class C Air-Conditioning Contractor
|Commercial Pool/Spa Contractor
|Pollutant Storage Systems Contractor
|Residential Pool/Spa Contractor
|Sheet Metal Contractor
|Swimming Pool/Spa Servicing Contractor
|Underground Utility and/or Excavation Contractor
When applying for a construction license, you may see terms like “certified” and “registered”. This is simply referring to the scope of each license type; certified contractors can operate statewide and are not limited to a single city or county, while registered contractors are licensed locally and can only operate in their designated municipalities.
Further details about the ins and outs of each license type can be found on the Board’s Construction Industry webpage.
The Florida Construction Industry Licensing Board is responsible for licensing and implementing regulations of the construction industry, as well as protecting the public’s safety and general welfare. The Board accomplishes this through rigorous license regulations and mandatory insurance requirements (i.e. liability insurance, property damage insurance, and worker's compensation insurance) for all active contractors.
In addition, the Board protects itself by requiring contractors with a history of financial lows to obtain a Construction License Bond. The surety bond simply ensures that the public and the Board will be protected from financial losses. So if a license violation is committed and remains unresolved by the contractor or if the Board does not receive payment for any licensing/penalty fees due, that's when the surety provider (Jet) comes in and provides payment for what is owed on behalf of the contractor.
Further information on what is expected of you as a licensed contractor can be found in the regulations pursuant to Title XXXII, Chapter 455 and Chapter 489 of the Florida Statutes. Some additional details are also provided in the Florida Administrative Code, Chapter 61G4.
To begin, simply select the “View Your Bond Price” button at the top of the page. The application will ask for some general information such as your contact details, an indication of the bond limit required, and your social security number for a soft credit check (this process won't impact your score). If more info is needed, you’ll receive a quick call from a Jet underwriter. Either way, you’ll receive an approved rate that is ready for immediate purchase. Once payment is received, you’ll receive a copy of your receipt and bond form via email right away.
The signed and sealed Construction License Bond form, along with any other required documents, must be submitted to the Florida Construction Industry Licensing Board through the Department of Business and Professional Regulation’s Application Center. The Board then expects you to hold onto the original form for your personal records (following your purchase with Jet, you’ll receive the original signed and sealed bond form in the mail).
If you have any questions regarding the licensure application process, the Board’s mailing address and contact details can be found listed below.
Division of Professions
Construction Industry Licensing Board
2601 Blair Stone Road
Tallahassee, FL 32399
If your FICO credit score is 660 or higher at the time of you applying for a renewed construction license, then you will not be required to file an active Construction License Bond with the Florida Construction Industry Licensing Board. Simply submit your new and improved credit report to the Board to be officially removed from the surety bond requirement.
It is important to note that certified contractor licenses expire on August 31st of even-numbered years regardless of the date of issuance, while registered contractor licenses expire on August 31st of odd-numbered years regardless of the date of issuance. So, if your credit score is below 660 upon your renewal date once again, you will need to have an active Construction License Bond ready for filing.
For details on how you can renew your surety bond with Jet, select the “How to Renew My Bond” button at the bottom of the page.
If you are acting as a Financially Responsible Officer (FRO) for a construction company in the State of Florida (this applies even to your own company), you will need to acquire a $100,000 Financially Responsible Officer Bond.