Contractors and construction companies will often hire a financially responsible officer to manage finances. Read this short guide to learn about the duties, requirements and importance of Florida financially responsible officers.
What Is a Financially Responsible Officer?
Financially Responsible Officers (FRO) are individuals other than the primary qualifying agents who are appointed and authorized to handle company financials.
Officers are responsible for business financial operations such as taking and making payments and ensuring compliance. They are also held liable for misconduct on behalf of the company.
In Florida, financially responsible officers are most common in the construction industry. FROs play an important role in ensuring financial aspects of the business and individual construction projects are handled responsibly, efficiently, and legally.
FRO vs Qualifying Agent
Qualifying agents oversee construction operations and provide more on-site support for compliance, field work and safety. Unlike qualifying agents, FROs focus only on financial operations and legal obligations.
Financially Responsible Officer vs Qualifying Agent
Having an FRO divides the workload and allows primary qualifying agents to focus on technical, construction matters such as compliance and supervision.
Florida Financially Responsible Officer Duties
Some of the most common responsibilities for FROs in Florida include the following:
- Financial management: Maintaining financial stability and compliance for the business and approving contractual business matters, checks, drafts, and payments
- Upholding regulations: Meeting Florida regulations regarding reporting, financial obligations and bonding requirements
- Licensing: Assisting in certification and registration processes by providing necessary financial documentation
What Are the Qualifications to Become an FRO?
Florida FROs must prove financial responsibility through assessment by the Construction Industry Licensing Board (CILB). The CILB may assess factors such as the following:
- Creditworthiness
- Reputable business background
- Net worth
- Background check
How to Become a Certified Financially Responsible Officer in Florida
You must be approved by the Department of Business and Professional Regulation (DBPR) to become an FRO in Florida. Complete the following steps to apply:
Step 1: Purchase a $100,000 surety bond
The Florida DBPR requires all financially responsible officers to have a $100,000 surety bond. This bond ensures that FROs follow laws and regulations related to the following:
- Completing payments
- Maintaining records
- Reporting finances
You can get your FRO bond instantly online for $1,000 with SuretyBonds.com. The physical bond form will be mailed to you within 2-5 business days, depending on the shipment option you select. File this with the DBPR as instructed.
Step 2: Order a credit report
Before you can apply to be an FRO, you’ll need to order a credit report through a nationally-recognized agency to prove financial responsibility. Once your credit report is completed, you can start your application.
View the Florida Construction Industry Licensing Board Credit Reporting Agencies PDF for a list of acceptable credit reporting agencies.
Step 3: Submit an application
You’ll need to submit an application to the DBPR to become a FRO in Florida. Take the following actions to complete the application:
- Select application type: Remove FRO, add FRO or change FRO
- Remove FRO: If applicable, remove any previous FRO from the business by providing their information.
- Personal information: Provide name, license number, address, SSN, etc.
- Complete background questions: Provide explanations if answering “yes” to certain background questions
- Attach credit report and surety bond forms
- Pay the $200 application fee: Submit with your application
After completing applicable sections of the FRO application, mail your application to the following address:
Department of Business and Professional Regulation
2601 Blair Stone Road
Tallahassee, FL 32399-0783
Step 4: Get fingerprinted
After submitting an application, you must get fingerprinted. To do so, use any Livescan Service Providers approved by the Florida Department of Law Enforcement (FDLE).
Read the DBPR Frequently Asked Questions for detailed information on the electronic fingerprinting process.