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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:#1F497D">Direct contracting with the owner is fine for trades that hold licenses under 489.105(3)(d) – (q). But a trade outside of those categories will have to work under
(and contract with) a 489.105(3)(a) – (c) contractor. For example, framing, concrete, structural steel, fenestration, various interior finishes, etc., all have to be under a GC (or BC or RC if they qualify for the particular project).
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p style="FONT-SIZE: 9pt; FONT-FAMILY: Arial"><strong><span style="FONT-SIZE: 10pt">Bruce Partington | Shareholder</span><br>
</strong><a href="mailto:bpartington@clarkpartington.com"><font color="#02b2ee">bpartington@clarkpartington.com</font></a><font color="#02b2ee"> |
</font><a href="callto:(850) 432-1399"><font color="#02b2ee">(850) 432-1399</font></a></p>
<p style="FONT-SIZE: 9pt; FONT-FAMILY: Arial"><span style="FONT-SIZE: 10pt"></span><strong><font size="2">CLARK PARTINGTON</font></strong><br style="FONT-SIZE: 9pt; FONT-FAMILY: Arial">
Office: (850) 434-9200 | Fax: (850) 432-7340 <br style="FONT-SIZE: 9pt; FONT-FAMILY: Arial">
125 East Intendencia Street, 4th Floor <br style="FONT-SIZE: 9pt; FONT-FAMILY: Arial">
Pensacola, Florida 32502 <br style="FONT-SIZE: 9pt; FONT-FAMILY: Arial">
<a style="FONT-SIZE: 9pt; FONT-FAMILY: Arial" href="https://clarkpartington.com/"><font title="" style="FONT-SIZE: 9pt; FONT-FAMILY: Arial" color="#02b2ee">clarkpartington.com</font></a>
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<p class="MsoNormal"><b>From:</b> clc-discussion-bounces@lists.flabarrpptl.org <clc-discussion-bounces@lists.flabarrpptl.org>
<b>On Behalf Of </b>RPPTL CLC-Discussion<br>
<b>Sent:</b> Tuesday, October 4, 2022 1:06 PM<br>
<b>To:</b> clc-discussion@lists.flabarrpptl.org<br>
<b>Subject:</b> Re: [CLC-Discussion] Construction contracting arrangement<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">The owner may hire multiple prime contractors without needing a construction license. Each contractor (that you labeled as “subcontractors”) would need to be licensed in its field in order to contract to do
the work.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="line-height:14.25pt"><b><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:#0D4876">Reese J. Henderson, Jr.</span></b><span style="font-size:8.5pt;font-family:"Times New Roman",serif;color:black"><br>
</span><span style="font-size:8.0pt;font-family:"Verdana",sans-serif;color:#0D4876">Shareholder<br>
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Florida Supreme Court Certified Circuit Civil Mediator</span><span style="font-size:8.5pt;font-family:"Times New Roman",serif;color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><b>From:</b> clc-discussion-bounces@lists.flabarrpptl.org <clc-discussion-bounces@lists.flabarrpptl.org>
<b>On Behalf Of </b>RPPTL CLC-Discussion<br>
<b>Sent:</b> Tuesday, October 4, 2022 1:58 PM<br>
<b>To:</b> 'clc-discussion@lists.flabarrpptl.org' <clc-discussion@lists.flabarrpptl.org><br>
<b>Subject:</b> Re: [CLC-Discussion] Construction contracting arrangement<o:p></o:p></p>
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<p class="MsoNormal"><span style="color:#1F497D">Good afternoon,</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">Does anyone have insight regarding certain licensing issues (described below) arising from the following
<u>potential</u> contracting arrangement:</span><o:p></o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo2"><![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="color:#1F497D">The owner (who is not a licensed entity) of a multi-family residential property would enter into a contract with a construction management company (a licensed general contractor), whereby the general
contractor would oversee/supervise various aspects of construction, including management activities related to subcontractors.
</span><o:p></o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo2"><![if !supportLists]><span style="font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><span style="color:#1F497D">However, the owner—not the general contractor—would enter into the underlying subcontracts with various subcontractors, where the scopes of work of many of these subcontractors would require a license
(electrical, plumbing, etc.)</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">I think it is clear that construction management activities would require a license, but I am wondering whether Owner’s “contracting” with the subcontractors directly might sufficiently trigger the following
licensing exemptions under chapter 489: either (1) the “Big Boy” exemption under section 489.119(7) or (2) the “Developer” exemption under §489.105(6) (I borrow the above “Big Boy” and “Developer” descriptions from
<a href="https://link.edgepilot.com/s/7175cf3f/5wiMnjdNgUSKvjL179ZJcQ?u=https://www.floridabar.org/the-florida-bar-journal/licensing-of-florida-contractors/">
Mr. Klingen’s informative article from the Florida Bar website</a>). I think that the two above exemptions may be subject to a few of the following issues under the above potential contracting arrangement:</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l1 level1 lfo4"><![if !supportLists]><span style="mso-list:Ignore">1)<span style="font:7.0pt "Times New Roman"">
</span></span><![endif]><span style="color:#1F497D">With respect to the “Big Boy” exemption, the main issue would appear to be whether the construction manager would qualify under the “employ” language of the statute. In other words, does this provision require
that the licensed individual (company?) be employed as W-2 employee as opposed to an independent contractor—or borrowing from chapter 489’s definition of “employee”, must be “a person who receives compensation from and is under the supervision and control
of an employer who regularly deducts the F.I.C.A. and withholding tax and provides workers’ compensation, all as prescribed by law.”?</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l1 level1 lfo4"><![if !supportLists]><span style="mso-list:Ignore">2)<span style="font:7.0pt "Times New Roman"">
</span></span><![endif]><span style="color:#1F497D">With respect to the “Developer” exemption under §489.105(6), the main issue would appear to be whether this exemption could apply to the owner and subcontractor subcontract, or if that exemption is limited
to contracts that involves the selling the completed residences. </span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">Any help/guidance you may have would be greatly. Appreciated; thank you!</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
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<p class="MsoNormal"><a name="_GoBack"></a><span style="color:#1F497D">Johnathan Ayers, Esq.
</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">Stearns Weaver Miller Weissler</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">Alhadeff & Sitterson, P.A.</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">150 West Flagler Street, Suite 2200</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">Miami, FL 33130</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">Direct: 305-789-3517</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">Email: <a href="mailto:jayers@stearnsweaver.com">
<span style="color:blue">jayers@stearnsweaver.com</span></a></span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"><a href="https://link.edgepilot.com/s/0ce1de31/VEo7ocm4nk_tTq64B4VQaQ?u=http://www.stearnsweaver.com/"><span style="color:blue">https://link.edgepilot.com/s/0ce1de31/VEo7ocm4nk_tTq64B4VQaQ?u=http://www.stearnsweaver.com/</span></a></span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">Certified by the Florida Bar in Construction Law</span><o:p></o:p></p>
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