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A Registered Building Contractor in Florida wants to take on a project valued at $350,000. What action must they take?

Correct Answer

D) Upgrade to a Certified Building Contractor license

Registered Building Contractors in Florida are limited to projects valued at $200,000 or less. For a $350,000 project, the contractor must upgrade to a Certified Building Contractor license, which allows unlimited building construction work.

Answer Options
A
Obtain additional bonding and insurance
B
Apply for a special permit from DBPR
C
Partner with a Certified General Contractor
D
Upgrade to a Certified Building Contractor license

Why This Is the Correct Answer

Florida Statutes clearly establish that Registered Building Contractors have a monetary limitation of $200,000 per project. Since the project value is $350,000, which exceeds this limit by $150,000, the contractor cannot legally perform this work under their current license classification. The only way to take on projects above $200,000 is to upgrade to a Certified Building Contractor license, which removes all monetary restrictions for building construction work.

Why the Other Options Are Wrong

Option A: Obtain additional bonding and insurance

There is no special permit process through DBPR that allows a Registered Building Contractor to exceed their $200,000 project limit. The licensing structure is designed with clear monetary thresholds that require proper license classification.

Option B: Apply for a special permit from DBPR

Additional bonding and insurance do not change the fundamental licensing limitation. The $200,000 limit is a statutory restriction based on license classification, not an insurance or bonding issue that can be resolved with additional coverage.

Memory Technique

Remember 'R200C∞' - Registered stops at $200K, Certified is unlimited (∞). When project exceeds your license limit, you must upgrade, not find workarounds.

Reference Hint

Florida Statutes Chapter 489 - Contracting Licenses and Florida Administrative Code 61G4, specifically sections covering license classifications and monetary limitations

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