State, Tampa Crack Down On Unlicensed Contractors

Cash-strapped consumers might find it tempting to save money on home improvements by hiring unlicensed contractors.

But as the economy tanks, state regulators and local builders said they hear more complaints about unlicensed contractors doing shoddy work or vanishing with consumers' money before the job is finished.

"Education is the first line of defense for consumers who want to manage their money wisely and protect themselves from unscrupulous or unlicensed individuals," said Charles W. Drago, secretary of the Florida Department of Business Regulation.

Business regulators urge consumers to investigate every worker or business that should be licensed by the state, whether it's a cosmetologist, an athletic agent, a restaurant or a contractor.

In the last eight years, the state logged 63,080 complaints about unlicensed workers for 140 types of businesses the state regulates, according to state data compiled by TBO.com and searchable at the link on this page.

In Tampa, 2,153 businesses or individuals have been investigated for operating without a license since 2000, many of which paid fines and a few of which were forced to shut down.

Those cited in Hillsborough County included the Brandon Chamber of Commerce, a local Girls Scout troop, adult book stores, nail salons, restaurants, a veterinarian - and a number of building contractors.

Penalties for unlicensed contractors make up the bulk of the $5.08 million in fines collected in the last year by the state. That includes unlicensed electricians, plumbers and roofers.

Regulators view licensing as an essential tool to ensure workers have proper training to protect consumers' health, safety and finances if things go poorly. For contractors, the license means the worker is trained on the latest building code revisions, is insured and will get the necessary permits and inspections.

"People want the work done as cheaply as possible, especially in this economy," said Jennifer Doerfel, a spokeswoman with the Tampa Bay Builders Association. "But 90 percent of the complaint calls we get about contractors turn out to be unlicensed contractors."

Tampa city officials have cracked down, as well. This year, the police department hired a full-time detective to investigate unlicensed contractors.

Police have said they receive an average of 35 tips a week. The average financial loss is $10,000 to $20,000. Authorities investigated one incident in which a consumer lost $140,000.

State regulators have intensified efforts to rid the state of unlicensed building contractors. The department pays for its enforcement using a $5 portion of each licensing fee.

In late October, the business regulation department issued 17 notices of noncompliance, 17 citations and 27 notices to cease and desist in its first statewide sweep of unlicensed contractors.

Those working without a license can be charged with a first-degree misdemeanor for a first offense. It generally costs about $1,000 to become a licensed contractor, but a citation for working without one can reach $5,000.

Anyone who works without a license during a governor-declared state of emergency, such as a hurricane, commits a third-degree felony.

"Unfortunately, we have seen unscrupulous individuals take advantage of storm victims, and we want to do everything in our power to educate consumers on ways to protect themselves," Drago said.

Guarding Against Unlicensed Businesses

• Always ask to see a Florida license.

• Note the license number, and verify it is current and in good standing. To check a license, call (850) 487-1395 or go to www.myfloridalicense.com.

• Beware of scams in which individuals ask for the money up front or will only accept cash.

• Be cautious of writing checks payable to individuals, especially when dealing with a company.

• Get everything in writing, including a detailed description of the work to be completed, a completion date and the total cost.

• Do not sign the certificate of completion until you are satisfied with the work done.

Source: The Florida Department of Business Regulation