Few general contractors stop to think about the consequences of having an unlicensed subcontractor on their jobsite. Recently, a general contractor in Tampa found out the hard way.  

According to Florida Law, contracts performed in full or in part by unlicensed subcontractors are unenforceable. In Kvaerner Const v American SAF, 847 So.2d 534 (Fla. 5 DCA 2003), the court held that where a general contractor hires a subcontractor knowing it does not have a license, he cannot indirectly recover on the illegal subcontract by enforcing a performance bond.  In that case, the general contractor hired a steel subcontractor “knowing” it had no license.  A stop order was issued by the county as a result of the subcontractor’s failure to have a license.  The general contractor declared the subcontractor in default and sought to remedy the default under the subcontractor’s performance bond.  The surety denied payment and the general contractor sued.  The court ruled that the general contractor was not entitled to recovery because he was as much of a “wrongdoer” as the subcontractor by allowing him to work on the project without a license.

Practical tips:

• Verify that all subcontractors with whom you are contracting are properly licensed.
• Never allow an unlicensed contractor into your jobsite.
• A “pending license” is not enough.  The license must be active and current at the time the contractor steps on the jobsite.
• If you currently have an unlicensed contractor on your project, you should immediately contact an experienced lawyer for legal advice.

For more information, please call us at (954) 229-1008.