Residential Contractor License Process

Everything you need to know — from whether you need a license to getting it in your hands.

Do You Even Need a Residential Contractor License?

Any work that is casual or inconsequential under $2,500 you don't need a license for. But if the scope of work falls under a specific trade license, like plumbing, you would need that specific license regardless of the price. For example, if you're putting new cabinets in a kitchen, you don't need a license to do that, but if the job goes over $2,500 you will need a license. Any structural work will also require a license.

Without a license you do not have any lien rights on the project, which puts you in jeopardy of not getting paid.

What Are the Consequences of Doing Unlicensed Work?

Doing contracting work without the required Residential Contractor license can result in a first-degree misdemeanor for a first offense and a third-degree felony for a second offense. DBPR or a local licensing board may also issue a cease-and-desist order, the unlicensed contractor's contract may be legally unenforceable, and a building department cannot issue a permit for work requiring a state license. In certain cases involving negligence, malfeasance, or misfeasance, the consumer may also be entitled to three times the actual compensatory damages, plus costs and attorney's fees.

What Scope of Work Can You Do With a Residential Contractor License?

Construction, remodeling, repair, or improvement of one-family, two-family, or three-family residences that are not more than two stories, along with the accessory use structures connected with these buildings. An accessory use structure would be a garage, guest house, garden shed, or other outbuilding.

What Are the Requirements?

Obtain a passing score of 70% or higher on the Business and Finance Exam, Contract Administration Exam, and Project Management Exam.
Be at least 18 years of age.
Meet the educational/experience requirements.
Be of good moral character.
Pay all applicable fees.
Obtain workers' compensation coverage.
Demonstrate financial responsibility.

What Is the Business and Finance Exam?

125 Questions

6 hrs 30 min

70% to Pass (84/120)

Open Book

Five of those questions are pilot questions that don't count toward your score. Only 120 questions are actually scored, meaning you need to get 84 questions right to pass.

5 Books for This Exam

2025 Contractor Manual
Builder's Guide to Accounting
AIA A201 2017
AIA A401 2017
AIA A701 2018

Don't think of this as a construction exam. It has almost nothing to do with construction — it's more of a law and accounting exam. I've seen contractors with 30 years of experience fail because they went in thinking their experience was enough.

For these exams, you don't need to retain and learn all of this information. It's more about knowing how the books work and how they are outlined. You need to be strong at using the index and table of contents. It's not knowing the information, it's knowing how to find the information in the books.

It's important for you to highlight and tab your books yourself so you understand what you're highlighting and tabbing. I don't recommend purchasing books that are already highlighted and tabbed because you don't know why things were highlighted or tabbed. In the course, I'll show you how to highlight and tab each book in video so you understand everything.

What Is the Contract Administration Exam?

50 Questions

4 hrs 30 min

70% to Pass (32/45)

Open Book

After passing Business and Finance, Contract Administration is next. I recommend studying one exam at a time and starting with Business and Finance since it's only five books. There is a lot of overlap between the two exams — Business and Finance is really the stepping stone. Contract Administration will be a lot harder if you haven't already passed Business and Finance and learned how to navigate those books.

13 Books You CAN Bring

2025 Contractor Manual
AIA A201 2017
AIA A401 2017
AIA A701 2018
OSHA 29 Part 1926, July 1, 2025
Principles and Practices of Commercial Construction, 11th Edition, 2024
Energy Efficient Building Construction in Florida, 2024
BCSI-ED2-D — Guide to Good Practices for Metal Connected Wood Trusses, 2025
Florida Building Code – Building, 2023
Florida Building Code – Accessibility, 2023
Florida Building Code – Residential, 2023
Florida Building Code – Existing Building, 2023
Florida Building Code – Energy Conservation, 2023

5 Books You CANNOT Bring

Walker's Estimating Guide, 33rd Edition
Builder's Guide to Accounting
Design and Control of Concrete Mixtures, 17th Edition, 2021
Placing Reinforcing Bars, 10th Edition, 2019
Application and Finishing of Gypsum Panel Products, GA-216, 2018 Edition

Don't waste roughly $400 buying the 5 books you can't bring into the exam. In the course, I'll tell you exactly what you need to know from those books — and you'll need to remember that information since the books can't be there on test day.

You already have the 2025 Contractor Manual and the three AIA documents from Business and Finance, so you'll just need to get the 9 other books. This exam is similar to Business and Finance — mostly asking questions about laws regarding contracts. The Contractor Manual and AIA documents are very important. They will also give you a set of plans and ask questions based on those plans, along with a few math questions. In the course, I'll guide you through this and teach you how to use the Construction Master Pro calculator.

What Is the Project Management Exam?

50 Questions

4 hrs 30 min

70% to Pass (32/45)

Open Book

The Project Management Exam has the exact same setup and book list as Contract Administration. You already have the Contractor Manual and three AIA documents, so you'll just need the same 9 other books.

This exam is not going to be anything like Business and Finance or Contract Administration. This is where your experience counts — but answer the questions based on what the books say, not what you've done in the field. You may have been doing something for years and the book says something different. They're testing you on what's in the book, not what's happening in the real world.

A lot of the questions may be things you have never seen in the field or even heard of. Keep in mind the people making these exams aren't contractors — they define themselves as psychometricians. All the answers are in front of you inside the books; you just need to find them. That's what I teach you in the course.

Where Do I Take the Exam?

You will take the exam at Pearson VUE, which has testing centers all over the country — you can even take it in Hawaii if you want.

Go to the Florida Exam website and register for your exams. It costs $135. Choose all three exams — Business and Finance, Contract Administration, and Project Management — at the same time so you only pay the $135 once.

Wait 10–14 business days for your approval email. At this point you are only getting your Candidate ID — you are not scheduling your exam yet.

Once you receive the approval email, schedule Business and Finance for about a month and a half out. It costs $80 at Pearson VUE.

Don't schedule Contract Administration or Project Management until you pass Business and Finance. They cost $45 each.

Should I Buy a Course?

A lot of people think, "Well, it's just books. I'll order them, start reading, and I'll be good." These are always the people who call me afterward and say, "Man, I went to take the exam, sat there for an hour, and was like, what is this?" Then they give up, submit the exam, and get a 20%. True story.

This exam is not about what you know. It's about whether you know how to find the information in the books. That's why I made the course — to make it an easy-to-follow process: one exam at a time, one book at a time, even one chapter at a time. I'll guide you through each book chapter by chapter and point out the important information you need to know.

No other school gives you the option to start with just Business and Finance. Once they sell you the whole package, they don't care whether you fail or pass — you've already bought everything from them.

I've helped thousands of contractors pass their exams, including many who came to us after failing somewhere else or using outdated materials. If you want to pass on your first try, join us at Florida Exam Prep.

After I Pass, How Long Are My Exams Good For?

All exams are valid for 4 years from the date you pass them. Business and Finance is good forever after you get your license — if you ever want another license, you just need to take the trade exam. You don't have to take Business and Finance again.

Educational / Experience Requirements

Don't worry about the application until you pass your exams — working on it while studying is a nightmare. Your college credits don't have to be from construction courses, just from an accredited college. Typically 30 credits equal one year. Military service can also count. If you don't have college or military, you'll show four years of field experience.

Choose one of the following qualification options:

Four-year construction-related degree from an accredited college, equivalent to three years of experience, and one year of proven experience applicable to the category.

One year of experience as a foreman and not less than three years of credits from accredited college-level courses.

One year of experience as a worker, one year as a foreman, and two years of credits from accredited college-level courses.

Two years of experience as a worker, one year as a foreman, and one year of credits from accredited college-level courses.

Four years of experience as a worker or foreman, of which at least one year must have been as a foreman.

Three years of military service and one year of experience as a foreman.

Two years of military service, one year as a foreman, and one year of experience as a worker or foreman.

One year of military service, one year as a foreman, and two years of experience as a worker or foreman.

Foreman

A person who is in charge of a group of workers and usually is responsible to a superintendent, contractor, or his or her equivalent.

Worker

A person who, through active experience as a worker, has learned the trade by serving an apprenticeship as a skilled worker who is able to command the rate of a mechanic in the particular trade.

Since you're going for a Residential Contractor license, your experience should be in residential work. Your experience does not have to be from Florida — you can use experience from other states and even other countries.

For each employer you'll need to provide: employer name and address, dates employed, employer phone number, name and license number of the qualifying contractor, contact name, email, your role (Worker or Foreman), number of years and months, and dates of project.

If your experience is from another state or country where a license number doesn't exist, put N/A. If you didn't leave on good terms with an employer, the chance of DBPR calling is very low — but if they do, you can provide W-2s or 1099s.

You'll also need to show experience in three or more of these categories:

Foundation / Slabs / Structural Formwork
Masonry Walls
Structural Demolition
Column Erection
Structural Wood Framing, including trusses and excluding platform framing

After choosing the categories, you'll also provide: Project Name, Project Address, Project Type (New Construction or Renovation), your Job Title and Duties on the project. The last thing you'll provide is the project specifics — number of stories, square footage, materials used, and other important details.

What Does "Good Moral Character" Mean?

The licensing board may review your criminal history to determine whether anything relates to your ability to responsibly practice contracting. In general, a conviction that occurred more than five years before the application is received cannot by itself be grounds for denial. The board also recognizes that many common offenses — DUI, simple assault or battery, disorderly conduct, petit theft, marijuana possession, reckless driving, traffic offenses, and trespassing — do not necessarily relate to the practice of contracting.

What Are the Applicable Fees?

$295

Three exams (B&F, Contract Admin, Project Management)

$45 each

Contract Admin & Project Management at Pearson VUE

$80

Business & Finance at Pearson VUE

$245

Application fee

You will also need to pay for fingerprints and your background check.

Workers' Compensation Coverage

You can purchase workers' compensation coverage from an insurance broker, or if you're a sole proprietor or partner, you can file to be exempt. You will also need liability and property damage insurance — for a Residential Contractor, you will need $100,000 in liability insurance and $25,000 in property damage coverage.

Financial Responsibility

You need to provide a credit report with a credit score of 660 or higher and no unsatisfied judgments or liens. If your score is below 660 with no unsatisfied judgments or liens, you can take a 14-hour financial responsibility course.

After I Get the License, Do I Ever Retake the Exams?

No. You never have to take these exams again. You will just need to renew your license every two years and complete 14 hours of continuing education every two years as well.

Can I Upgrade My Residential Contractor License Later?

If you are looking to get a Building or General Contractor license later on, I recommend taking the Contract Administration and Project Management exams for the General Contractor license. Both exams cover the same topics and books — the main difference is that the General Contractor exams are 65 questions instead of 50, so you're taking 15 additional questions on each exam to give yourself the option of getting a better license later on.

How the Upgrade Works

You're able to upgrade after having your Residential Contractor license active for 4 years. Once you hit the four years and have previously passed the General Contractor exams, you can upgrade to the General Contractor license without having to show separate project experience — holding the license active for those four years is considered the experience.