Navigating Florida’s Subcontractor Licensing Laws for Your Next Hoodie Project
Bancstac is an e-commerce site that sells hoodies. And, while the website looks fabulous, and everything is working well with retail sales -there may be a problem if you need subcontractors for your physical store expansion project. Do you know if your subcontractors need to be licensed? Are you aware of the licensing requirements for subcontractors in Florida? We know you may be wondering if we have gone off the rails talking about the start-up of an e-commerce business that sells hoodies. The connection between this hypothetical website and this blog post is that it can be a major problem if your e-commerce start-up needs subcontractors for a Florida-based retail expansion. To understand why that is the case, we need to take a deep dive into subcontractor licensing requirements in Florida. A subcontractor is utilized to perform work on behalf of a contractor. Specifically, subcontractors typically take on “secondary” work. A general contractor needs a license to build houses or commercial buildings. The general contractor often hires subcontractors to do secondary work. The general contractor likely needs to make a great deal of effort to find qualified subcontractors-whereas the subcontractor often has a calendar full of work weekly. Subcontractors can be roofers, masons, plumbers, electricians, etc. For example, the general contractor hires a plumber, who gets the bathroom ready for an inspection. It is important to note that once you hire someone to perform work on your behalf, you are likely required to vet their qualifications before hiring them. Why? In Florida, it is against the law for unlicensed contractors to take on the tasks required of a general contractor. Essentially, if you have a contract with a stranger to do work on a home or commercial building, you should get proof that the person is licensed. But what does that mean, exactly? Under Florida Statute 489.103(13), a “contractor” the use of or contracting to use the services of skill, labor, or materials, or any combination of them, in the performance of a contract to improve real property.” The definition of “contractor” in Florida Statute 489.103 is essentially an all-encompassing definition of those that do work on a construction site. How does this all affect the opening of a retail store? There are many situations that might lead one to hire unlicensed workers. On the other hand, there are a great deal of risks of hiring an unlicensed contractor. Ultimately, whether or not you hire unlicensed workers-many issues will arise that need to be vetted through litigation. A cafe’ located within a clothing retailer came into a bit of trouble when it attempted to expand its retail space. In fact, Caf{e Ion has been in a legal battle for years over its failure to remove or repair a fire hazard in its restaurant area. Essentially, the cafe’ is located within the clothing retail store but operates as its own independent cafe’ business. When Cafe Ion expanded its space, it hired unlicensed contractors to perform work. Over a period of time, a small fire was sparked because the cafe’s ventilation system drew duct from the clothing store within the same building structure. Because serious issues occurred when the ventilation system was installed, neighboring tenants were coerced into litigating this issue for years. Do you know what your legal obligations are when it comes to starting a new Florida business? Is your company making sure to comply with all legal requirements for opening a retail store? Consider these tips. It is evident that companies entering new e-commerce opportunities must ensure they have plans in place to meet all of the requirements for their new business models. Do you know what all the requirements are for opening a new store for your startup? Are you ensuring that subcontractors are licensed to perform their work? Above all, it is critical to hire only licensed contractors.