Unlicensed Contractors in Florida: Legal Ramifications, Contract Enforcement, Breach, and Punitive Damages

Construction Lawyer

Introduction

Florida has a long history of construction and development, which has unfortunately also made it a hotspot for issues related to unlicensed contractors. The state has taken a firm stance on contractor licensing in an effort to protect consumers and uphold public safety. Understanding the legal implications of working with or as an unlicensed contractor in Florida is essential—particularly regarding the enforceability of contracts, liability for breach, and the availability of punitive damages.

I. Licensing Requirements for Contractors in Florida

Florida law requires that most contractors performing work on construction projects be licensed under Chapter 489 of the Florida Statutes, which governs both construction contractors and electrical/alarm contractors.

Types of Licenses:

  • Certified contractors: Statewide licensed and can work anywhere in Florida.

  • Registered contractors: Licensed to work in a specific local jurisdiction.

Unlicensed contracting is considered a criminal offense in Florida:

  • First offense: First-degree misdemeanor.

  • Subsequent offenses: Third-degree felony.

II. Enforcement of Contracts by Unlicensed Contractors

General Rule: No Enforcement Rights

Under Fla. Stat. § 489.128, a contractor who is unlicensed at the time of contract formation or performance cannot enforce the terms of a contract—either directly or through equitable remedies like quantum meruit.

This means:

  • An unlicensed contractor cannot sue for unpaid work.

  • Courts generally will not allow recovery under breach of contract, unjust enrichment, or promissory estoppel.

Exception:

If the contractor was licensed at the time of the contract and work, and the license simply expired later (e.g., a paperwork lapse), courts may allow enforcement depending on the circumstances.

Case Law:

  • Earth Trades, Inc. v. T&G Corp., 108 So. 3d 580 (Fla. 2013): Reinforced that contracts entered into by unlicensed contractors are unenforceable.

  • Austin v. Duval County School Board, 657 So. 2d 945 (Fla. 1st DCA 1995): Denied recovery even under unjust enrichment to protect public policy.

III. Breach of Contract in the Context of Unlicensed Contracting

If an unlicensed contractor breaches a contract, the consequences are generally:

  • The homeowner or client can sue for breach.

  • The contractor cannot countersue for unpaid balances or damages unless properly licensed.

  • Courts may award restitution to the homeowner if payment was made for illegal/unlicensed work.

Homeowner's Rights:

  • Can sue for restitution of money paid.

  • Can report to the Florida Department of Business and Professional Regulation (DBPR).

  • May seek civil and criminal penalties against the contractor.

IV. Punitive Damages Against Unlicensed Contractors

What Are Punitive Damages?

Punitive damages are intended to punish and deter egregious, fraudulent, or malicious conduct—not just compensate a victim.

Are Punitive Damages Available?

Yes, under specific circumstances:

  • If the unlicensed contractor engaged in fraudulent misrepresentation, intentional deception, or reckless indifference to health and safety.

  • The plaintiff must show clear and convincing evidence of intentional misconduct or gross negligence, per Fla. Stat. § 768.72.

Common Grounds:

  • Misrepresenting licensure status.

  • Causing harm due to substandard or dangerous work.

  • Taking payment and abandoning the project.

Example Case:

  • Krol v. City of Orlando, 778 So.2d 490 (Fla. 5th DCA 2001): Highlighted that punitive damages require more than just breach—it must involve fraud or intentional wrongdoing.

V. Criminal and Civil Penalties

Criminal Charges:

  • First-degree misdemeanor for initial violations.

  • Felony charges for repeat offenders or violations during a declared state of emergency (e.g., post-hurricane reconstruction).

Civil Remedies:

  • Civil penalties under Fla. Stat. § 489.127.

  • Injunctions or cease-and-desist orders by the DBPR.

  • Fines up to $10,000 per incident.

VI. Consumer Tips: How to Avoid Unlicensed Contractors

  1. Verify licenses through the Florida DBPR at https://www.myfloridalicense.com.

  2. Avoid cash-only agreements.

  3. Always require a written contract with license numbers.

  4. Never pull an owner-builder permit for a contractor.

  5. Be wary of unusually low bids.

Conclusion

In Florida, the law is unequivocal: unlicensed contractors operate at their own peril. Not only are their contracts typically unenforceable, but they are also exposed to civil liability, criminal penalties, and potentially punitive damages. Property owners are encouraged to conduct due diligence, and unlicensed individuals are strongly advised to seek proper licensure before engaging in construction work.

Working with a licensed contractor not only ensures compliance with the law—it provides legal protections for both parties and supports the safety and integrity of Florida’s built environment.