A residential contractor was ordered to pay a $5,000.00 fine and $56,731.00 for failing to pull a permit within 30 days as required by Florida statute. While there were other factors involved, the only offense charged by the DBPR was failure to timely pull a permit, showing how quickly and badly things can spiral once licensing issues arise.
This particular case involved a Florida licensed certified residential contractor, who at one time had his license previously suspended for failing to pay a judgment. The contractor entered into an agreement with a homeowner whose residence had been damaged by fire.
The contract was for $46,700, and required the contractor to obtain a permit and provide architectural and engineered drawings. The draw schedule for the contract required a 30% deposit, 30% at completion of framing and the roof, 30% upon completion of plumbing, electric, and AC, and 10% at completion.
The homeowner paid the 30% deposit on January 19th. The building permit application was not submitted until March 24th — 64 days later. On May 25th, the parties executed and addendum to the contract, and the homeowner paid an additional $14,711.00 to the contractor.
Over the next three years, the homeowner paid a total of $56,731. At that time, construction was still far from complete. Nearly none of the trades’ work was complete, and the home was still uninhabitable.
After being reported to the DBPR, the contractor was ultimately charged with violating section 489.126(2)(a), Florida Statutes, which states:
(2)(a) A contractor who receives, as initial payment, money totaling more than 10 percent of the contract price for repair, restoration, improvement, or construction to residential real property must:
1. Apply for permits necessary to do work within 30 days after the date payment is made, except where the work does not require a permit under the applicable codes and ordinances, and
2. Start the work within 90 days after the date all necessary permits for work, if any, are issued,
unless the contractor has just cause for failing to apply for the necessary permits, starting the work, or refunding the payment, or unless the person who made the payment agreed, in writing, to a longer period to apply for the necessary permits or start the work or to longer periods for both.
The DBPR noted that the contractor could have waived this timing requirement in his contract, but failed to do so. In response the contractor claimed that he satisfied the timing requirement by contacting the building department about the engineering requirements for the permit shortly after the contract was signed, but the DBPR rejected this argument as non-compliant with the plain language of the statute.
In assessing a fine and ordering restitution, the DBPR considered not only the contractor’s prior conduct, but the fact that the homeowner had been essentially homeless for three years and that multiple other complaints had been filed in the intervening time. Ultimately the DBPR fined the contractor $5,000.00, suspended his license for two years, and ordered restitution of $56,731.00.
The critical takeaway from this decision is that contractors must strive to meet even the minor requirements under Florida’s licensing laws. Further, contractors should strive to stay off the DBPR’s radar, because even minor violations can result in significant fines and restitution depending on the underlying facts of the case.