Yes. Construction arbitrage is legal in Florida. The model - winning the prime contract and subcontracting the work to vetted trades - is how construction runs. What Florida requires is a contractor license from the DBPR/CILB before you take that contract. Get the license right and the model is entirely clean. Skip it and Florida hits harder than most states.
I run this model. Here is the Florida picture, drawn from the primary sources.
Why Florida is different from Texas for construction arbitrage
Texas has no state-level general contractor license. Florida does. That is the single most important difference between the two states for someone setting up construction arbitrage.
The Florida Department of Business and Professional Regulation (DBPR), through its Construction Industry Licensing Board (CILB), issues and enforces contractor licenses statewide. Before you take a prime contract in Florida, you need to be licensed by that board.
The model itself is fine. For the global legal picture read is construction arbitrage legal, and for how the US varies state by state see is construction arbitrage legal in the US. For the mechanics of the model, how construction arbitrage works lays it out from the start.
Certified vs registered: which license you want
Chapter 489 of the Florida Statutes creates two tiers of contractor licensing:
| License type | Geographic scope | How you get it |
|---|---|---|
| Certified | Anywhere in Florida | State exam via DBPR/CILB |
| Registered | One county or city only (and adjoining areas that accept it) | Local competency card + state registration |
For construction arbitrage - where you want to follow deals anywhere in the state, not be pinned to one market - the certified route is what you want. A registered license ties you to one jurisdiction and forces you to re-register every time you cross into a new one.
Within the certified tier, the three main Division 1 categories are:
- Certified General Contractor (CGC) - no scope limit on structure type, height, or size. Works statewide. The most flexible credential for an operator running varied or multi-trade jobs.
- Certified Building Contractor (CBC) - commercial and residential structures for occupancy. Covers the vast majority of jobs most arbitrage operators run.
- Certified Residential Contractor (CRC) - residential only, up to three stories. Only choose this if you know your work stays residential.
Most operators building a construction arbitrage business across different job types go for the CGC. If you know you will stick to commercial buildings, the CBC does the job and the exam is the same.
What the Florida CGC license actually requires
To get a Certified General Contractor license from the CILB, you need:
- Four years of industry experience - management, supervision, or hands-on. The board reviews your application and work history.
- CPA-audited financial statement showing at least $20,000 net worth.
- FICO credit score of 660 or higher. Below that threshold, you must complete a 14-hour CILB-approved financial responsibility course and post a higher surety bond.
- Three-part state exam: Business and Finance; Contract Administration; Project Management.
- $20,000 surety bond (reducible to $10,000 for applicants who complete the financial responsibility course).
- General liability insurance - CILB minimum $300,000 public liability and $50,000 property damage per Florida Administrative Code 61G4-15.005, with CILB named as certificate holder.
- Application and exam fees - around $113 application, ~$398 for the exams, ~$267 for the license itself (verify current figures with DBPR before applying).
Total upfront cost to get a CGC in hand - exam prep, exam fees, bond, initial insurance, application - typically runs $6,500-$8,000. That is real money up front, and it is also the barrier that keeps the amateurs out. For a serious operator the licence pays for itself fast.
Licenses renew every two years on August 31 of even-numbered years (so the next cycle is 31 August 2026). Renewal requires 14 hours of continuing education.
Specialty trade licenses: verify every sub
Florida is strict here. The state requires all contractors - including subcontractors - to hold DBPR licenses for their licensed trade category. Florida law is explicit: if you pay someone to do electrical, plumbing, HVAC, roofing, or other licensed trade work, they need a state license. That is their obligation, not yours - but verifying it before they start is absolutely yours.
The main categories your subs need:
- Electrical contractors - licensed by the Electrical Contractors' Licensing Board, a separate DBPR board. Verify at myfloridalicense.com.
- Plumbing contractors - licensed by CILB.
- Air conditioning and mechanical contractors - licensed by CILB.
- Roofing contractors - licensed by CILB.
Run every sub through the DBPR license search before work starts. An unlicensed sub is not just their problem - defect liability, permit failures, and insurance gaps follow the project, and the project is yours.
For more on the contractor licensing question at the model level, that post covers when a license is and is not required depending on the structure.
Insurance - the CILB minimum vs what the market expects
The CILB minimum (Florida Administrative Code 61G4-15.005) for general contractors is $300,000 public liability and $50,000 property damage. That is the floor to get the license.
The market expects more. Most commercial clients, developers, and project owners in Florida will want $1 million per occurrence and $2 million aggregate on your certificate of insurance before they sign a contract. I have not won a commercial job on lower numbers in years. Carry $1M/$2M as standard; consider higher for large projects.
Workers' compensation is not optional if you have employees. Florida Statute Chapter 440 mandates it for construction industry employers with even one employee - and that includes corporate officers and LLC members unless they file a specific exemption with the state. If you directly employ anyone, carry workers' comp. If you are operating solo as a single-member LLC with no employees, file the officer exemption correctly.
General liability for a small Florida contractor typically runs $500-$3,000 per year depending on revenue and scope. Get actual quotes - the range is wide and the coverage details matter.
The penalty for working without a license in Florida
Florida is serious about this, and during hurricane season it gets more serious.
Under F.S. 489.127:
- First offense - first-degree misdemeanor, criminally prosecuted.
- Repeat offense - third-degree felony.
- During a declared state of emergency - Florida governor declarations are a routine feature of hurricane season. A first offense can be elevated to a third-degree felony immediately.
DBPR can also issue civil citations with fines up to $2,500 per incident without a criminal prosecution.
Under F.S. 489.128, an unlicensed contractor loses the right to sue to collect payment. You finish the job, the client refuses to pay - you have no court remedy. That risk alone is enough to take the license seriously.
Florida does not treat unlicensed contracting as a paperwork technicality. Get the license first. The model is completely clean with it.
Business registration in Florida
Set up the right entity before you take work. In Florida:
- LLC - file Articles of Organization with the Florida Division of Corporations via Sunbiz.org. Filing fee: $125. Annual report: $138.75, due by May 1 each year ($400 late fee if you miss it).
- Sole proprietor - no Secretary of State filing required, but this leaves personal assets exposed. Most operators use an LLC.
Your CILB application identifies the business entity type. Get the LLC in place before you apply for the license - it keeps the whole structure clean from the start.
Before you take your first Florida job
- Form your LLC via Sunbiz.org.
- Apply for the right CILB certified license - CGC for most operators, CBC if you are sticking to commercial/residential buildings.
- Carry general liability at the CILB minimum ($300k/$50k) to qualify for the license; plan to operate at $1M/$2M for real work.
- Sort workers' compensation or file the officer exemption, depending on your setup.
- Verify every sub's DBPR license on the public lookup before they start.
- Pull permits where the job requires them.
Florida is more upfront compliance work than Texas. Once your CGC is in hand, the model runs the same way it does anywhere - you win the job, price it, manage your subs, and keep the spread.
If you want the full playbook for running this as a real business - the margins, the systems, the sub management, how to build the sub database - it is all in THE FAMILY SECRET - How Construction Arbitrage Really Works (coming soon).
This is general information, not legal advice. Licensing requirements, fees, and penalties change. Verify current requirements with DBPR/CILB at myfloridalicense.com, or with a Florida construction attorney, before you take work.
Last checked: 28 June 2026.
Frequently asked questions
Is construction arbitrage legal in Florida?+
Yes. The model - winning the prime contract and subcontracting the work to vetted trades - is how construction runs. What Florida requires is that you hold the right DBPR/CILB contractor license before you take that contract. Get the license right and the whole thing is clean.
Which contractor license do I need in Florida for construction arbitrage?+
Most operators running multi-trade or commercial jobs go for a Certified General Contractor (CGC) license - unlimited scope, works anywhere in Florida. A Certified Building Contractor (CBC) covers most commercial and residential buildings. A Registered contractor license ties you to one county or city only.
What are the requirements for a Florida Certified General Contractor license?+
CILB requires four years of industry experience, a CPA-audited financial statement showing at least $20,000 net worth, a FICO credit score of 660 or higher, a three-part state exam (Business and Finance, Contract Administration, Project Management), a $20,000 surety bond, and general liability insurance with CILB named as certificate holder. Total upfront cost typically runs $6,500-$8,000.
What is the penalty for doing construction arbitrage in Florida without a license?+
Under F.S. 489.127, a first offense is a first-degree misdemeanor. A repeat offense is a third-degree felony. During a declared state of emergency - which Florida governor declarations make common - even a first offense can be elevated to a third-degree felony. Civil citations from DBPR carry fines up to $2,500. Unlicensed contractors also lose the right to collect payment in court under F.S. 489.128.
Do my subcontractors need their own Florida license?+
Yes. Florida law requires all trade contractors - including subcontractors - to hold DBPR licenses for electrical, plumbing, HVAC/air conditioning, roofing, and other licensed categories. As the prime contractor, verify every sub's license on the DBPR lookup before they start work.
What insurance does Florida require for a general contractor?+
The CILB minimum under Florida Administrative Code 61G4-15.005 is $300,000 public liability and $50,000 property damage. In practice most commercial clients and developers expect $1 million per occurrence and $2 million aggregate. Workers' compensation is mandatory if you have even one employee, including corporate officers and LLC members unless they file an exemption.
Can I run Florida construction arbitrage jobs remotely?+
Yes. Your compliance obligations - license, insurance, permits - are tied to the work and where it is, not where you sit. The license and coverage have to be in place for the job. Where you manage from is your call.
Mohamed El HadriCo-Founder
I'm a co-founder of several construction companies. I built a construction business from a 30-van operation into a lean model with 1,400+ subcontractors in the database - winning the work as the main contractor, subbing it out, and running it as a system from a laptop across multiple countries. I write this site from what actually works.
@mointhemarket · 30k followers on Instagram →Run the model with people who already do
Reading the method is step one. When you want the operators who run construction arbitrage every day, join the Construction Arbitrage Players community. For the operator life, the events and the inside story, see Contractor Club.
The Family Secret - how construction arbitrage really works - is coming soon.
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