Doing Construction In California Versus Florida
Are you a California contractor moving to Florida? Or a Florida contractor packing up and heading West? Or maybe you’re in another state and wondering which of these two popular areas of the country is best for construction contractors?
We’ve got you covered. In this article, we’ll take a look at the basics for contractors looking to make the jump to Florida or California.
Contractor’s Licensing Requirements
California
- Licensing Requirement: You must have a contractor’s license to perform contracting work valued over $500 in California.
- Basic Requirements: Must be at least 18 years old, have a Social Security Number, and have at least four years of relevant industry experience.
- Examination: Consists of a Law and Business section and a trade-specific section relevant to the area of application.
- Additional Requirements: Includes registering with the Secretary of State, obtaining insurance, and paying associated fees.
- Governing Body: California Contractors State Licensing Board (CSLB)
Florida
- Licensing Requirement: You must have a contractor’s license to perform contracting work in Florida.
- Basic Requirements: Must be at least 18 years old, undergo a background check, and secure insurance.
- Examination: Includes the Business and Finance exam, Construction Law exam, and General Construction Knowledge exam .
- Additional Requirements: Involves registering your business entity, providing a financial statement, and fulfilling experience requirements.
- Governing Body: Florida Department of Business & Professional Regulation (DBPR)
Construction Climate and Environmental Considerations
California
- Climate: Ranges from Mediterranean to desert and coastal.
- Environmental Laws: Recent laws require companies to disclose climate-related financial risks.
- Challenges: Prone to wildfires, earthquakes, and droughts.
Florida
- Climate: Primarily tropical, with hot, humid summers and mild winters.
- Environmental Regulations: Rising sea levels and climate change regulations affect construction, especially with regard to areas near water.
- Natural Disasters: Susceptible to hurricanes.
Construction Costs Comparison
California
- Average Cost per Square Foot: $202 for building a house, not including land costs, permit fees, excavations, and other costs.
- Average Home Building Costs: Range from $400,000 to $600,000 for a typical home.
- Cost for Custom Home: On average, building a custom home in California will cost $500 or more per square foot.
- Cost by Number of Bedrooms: For example, a 3-bedroom home ranges from $400,000 to $1.62 million to build.
- Cost by Number of Stories: A two-story home costs between $800,000 and $1.8 million to build.
Florida
- Average Cost per Square Foot: $205 on average, $125.41 for building a tract home.
- Average Home Building Cost: Current home prices in Florida put your average home cost around $400k.
California vs. Florida: Pros and Cons
California Pros
- Diverse Projects: California’s varied landscape offers opportunities for different types of construction projects, from residential to commercial and infrastructure.
- Higher Wages: Due to the higher cost of living, construction workers and contractors can command higher wages in California compared to many other states.
- Environmental Leadership: California’s strict environmental regulations can lead to innovative green building projects, providing a niche for contractors specializing in sustainable construction.
- Lucrative Projects: There’s a lot of money in California – as easily the richest state in the nation – and that means there’s a lot of big-ticket construction projects in the state.
California Cons
- Regulatory Challenges: The state’s notoriously stringent building codes and regulations can be complex and time-consuming to navigate, potentially delaying projects.
- High Competition: The construction market in California is highly competitive, with numerous contractors vying for the same projects.
- Natural Disaster Risks: Contractors need to be prepared for the added costs and challenges of building in areas prone to wildfires, earthquakes, and other natural disasters.
Florida Pros
- Booming Market: Florida’s growing population and tourism industry drive a constant demand for new construction, providing ample opportunities for contractors.
- Lower Costs: The overall cost of doing business, including labor and materials, tends to be lower in Florida compared to California.
- Favorable Tax Environment: Florida’s lack of state income tax can be financially beneficial for contractors operating as independent businesses or sole proprietors.
Florida Cons
- Hurricane Risks: Contractors must contend with the challenges of building structures that can withstand hurricanes and tropical storms. This is a threat that will only continue to increase (which can also mean big money for certain contractors!).
- Seasonal Variability: The construction industry in Florida can be more seasonal, with peak activity during the cooler months and potential slowdowns in the hot, humid summer. Constant rain is also something that can stop or slow projects.
- Insurance Costs: High risk of natural disasters can lead to higher insurance premiums for construction projects in Florida.
Can I Use My Florida Contractor License In California Or My California Contractor License in Florida?
Can You Use A California Contractor License in Florida?
If you are a contractor licensed in California, you can use your license to obtain a Florida contractor license under certain conditions:
- 10-Year Rule (No Exam Required): If you have been licensed in California for 10 consecutive years in the same category you are applying for in Florida, you may be eligible for a Florida license without taking the exam. You must also meet other requirements such as taking a 2-hour course on the Florida Building Code, submitting a credit report, passing a background check, and having the necessary insurance.
- Exam Equivalence: If you have not been licensed in California for 10 years but have passed an exam substantially equivalent to Florida’s licensing exams, you may qualify for a Florida license. This is applicable for California’s General Contractor, Building Contractor, and Solar Contractor licenses.
- Licensing Process Equivalence: If you obtained your California license through a process substantially equivalent to Florida’s licensing criteria, you might be eligible for a Florida license. However, this option may not be feasible if you obtained your California license using an RMO (Responsible Managing Officer) without taking an exam.
Can You Use a Florida Contractor License in California?
Unfortunately, contractor licenses from other states, including Florida, are not transferable to California.
However, having a contractor license from another state may help you in obtaining your California license. You will still need to meet California’s licensing requirements, including passing the necessary exams and fulfilling the experience criteria.
It’s Your Responsibility To Stay Compliant
No matter your situation, both Florida and California are ripe with opportunities for contractors with the skill, will, and commitment to make it as a contractor in these high-income areas.
As always, making sure you’re staying compliant with the laws of each state is critical – it’s literally what allows you to do your job – and it’s your responsibility to stay legal. This article only covers the basics; head to the regulatory body of Florida or California if you want to get more serious about making this dream a reality.
