Can a Licensed Contractor “Just Pull the Permit” for an Unlicensed Friend or Subcontractor?
The short answer is no. In Florida, a licensed contractor cannot “lend,” “rent,” or otherwise allow an unlicensed individual to use their license to obtain permits or perform work that legally requires licensure.
Unfortunately, this is one of the most common issues we see in contractor licensing cases.
A Common Scenario
Consider the following situation:
Gary is a licensed general contractor in Florida who primarily handles large residential and commercial projects. His friend, Ted, is a handyman who typically performs smaller jobs that do not require a contractor’s license.
One day, a former client contacts Ted about a kitchen and bathroom remodel—work that clearly requires a licensed contractor. Ted reaches out to Gary to refer the project, but Gary declines because he is too busy and the job is too small.
Instead, Gary tells Ted to go ahead and take the job and use Gary’s license number to pull the necessary permits. Ted signs a contract directly with the homeowner, performs the work independently, gets paid directly by the client, and then pays Gary a fee for the use of his license.
While this arrangement may seem convenient, it is a clear violation of Florida law.
Why This Is Illegal
Florida law requires that the licensed contractor who pulls a permit must be the one who is:
- Contracted with the property owner
- Responsible for the work
- Supervising and controlling the project
In the scenario above, Gary is none of these things. He is not supervising the job, he is not in contractual privity with the homeowner, and he is not exercising control over the work. Instead, he is merely allowing his license to be used “on paper.”
This is commonly referred to as “license lending,” and it is strictly prohibited.
Potential Consequences
Both the licensed contractor and the unlicensed individual face serious consequences.
For the Licensed Contractor (Gary):
- Administrative complaint against his license
- Fines and costs
- Probation, suspension, or revocation of licensure
For the Unlicensed Individual (Ted):
- Cease and desist orders
- Administrative fines
- Possible criminal charges for unlicensed contracting
For Both Parties:
- Exposure to civil liability if the project results in damages
- Insurance coverage issues or denials
Criminal and Administrative Violations
Florida law makes it a crime to:
- Act in the capacity of a contractor without a license
- Aid or abet an unlicensed contractor
Additionally, such conduct can violate multiple provisions of the Florida Statutes and the Florida Administrative Code governing contractor licensing.
In most cases, regulators will pursue enforcement action against both parties. This often includes administrative prosecution of the licensed contractor and enforcement actions against the unlicensed individual, including cease and desist orders.
The Bottom Line
A licensed contractor cannot simply “pull a permit” for someone else and step aside. If a contractor’s license is being used, that contractor must be actively involved in, and legally responsible for, the project.
Arrangements where an unlicensed individual performs the work independently while using someone else’s license are not only improper—they can result in significant administrative penalties, criminal exposure, and civil liability.
If you are a contractor facing a licensing issue or investigation, it is critical to seek legal counsel early to protect your license and your livelihood. Contact McIntosh Law today at (941) 299-0701 to schedule a consultation and protect your rights.