Dr. Paul Borosky, DBA, MBA
Construction Guide · Growth
From Subcontractor to General Contractor: What It Takes
Many subs think about going prime. The work changes more than the title does. You manage other trades, carry their payments, and answer to the owner. This page shows the Florida license path, the cash you need, and a safe way to start. Part of the construction business guide.
Need help now? Call or text (321) 948-9588. Dr. Paul answers personally.
Last Updated: 10/27/2026 · Written by Dr. Paul Borosky, DBA, MBA
The Short Answer
What Does a General Contractor Do?
Textbook Definition
A general contractor holds the contract with the owner and manages the whole project, including scheduling, hiring subcontractors, buying materials, handling permits, and answering for quality and payment.
In Plain English
A sub does one trade. A general contractor runs the whole job and is responsible for everyone on it, including the people they hire.
Why It Matters
Why Is Moving Up So Hard?
The skills change. A sub gets paid for doing the work well. A prime gets paid for organizing, pricing, and managing other people’s work, and for carrying the risk if they fail.
The money changes too. As a prime you pay subs and suppliers, often before the owner pays you. Florida’s new section 489.1295, effective July 1, 2026, says licensed contractors must pay subs and suppliers within 45 days of being paid, or as the contract says, unless there is a bona fide dispute. Knowing or willful violations can bring discipline. Source: DBPR. See how to manage subcontractors.
The license changes, too. Contracting without the right license in Florida can mean a misdemeanor on a first offense and a felony for repeat offenses or during a declared emergency, civil penalties of up to $2,500 per day, and no right to enforce the contract or file a lien. See the license and lien checklist.
You may be ready to go prime if:
- You already bid and price your own work well.
- You can name subs in at least four trades you trust.
- You have four or more years of commercial experience, including time as a foreman.
- You can float payroll and sub payments for 60 to 90 days.
- You have a mentor or a general contractor who will share lessons.
- You know which kind of job you want to run first.
The Fix
6 Steps From Sub to Prime
Florida is the example. Your state’s license categories and experience rules may differ.
Pick the right license category.
Florida has three main ones under sections 489.105 and 489.111: general contractor (unlimited work), building contractor (commercial buildings, plus residential up to three stories), and residential contractor (one-, two-, and three-family residences).
Build the required experience.
Applicants must be at least 18, of good moral character, and have either four years of active experience including one year as a foreman, an approved degree plus one year of experience, or a combination of experience and college credit. Rule 61G4-15.001 requires commercial experience in at least four of six listed areas, and general contractors need at least one year on structures of four or more stories. Residential experience must cover three or more areas.
Meet the financial rules.
DBPR requires a credit score of 660 or higher, or a board-approved 14-hour financial responsibility course. Applicants submit a credit report and attest to workers’ compensation and liability insurance. Board rules may also require a minimum net worth, cash, or bonds. We could not confirm the current figure, so ask DBPR.
Decide how you will qualify.
A business needs a certified or registered qualifying agent with final approval authority. If the qualifier leaves, the business has 60 days to replace them and may not contract until it does, unless a temporary certificate is granted.
Start small and keep the sub work.
Take one small prime job while your sub work pays the bills. Use the job size test so one prime job cannot sink you.
Write the plan.
Lenders and sureties want to see how you will manage subs, price jobs, and fund the gap. A written plan with projections answers those questions. See how to write a construction company business plan, or let Dr. Paul write it for you.
Dr. Paul’s Insight
The best first prime job is a job you could do yourself in the trades you know best. Hire subs for the trades you do not. You learn scheduling, billing, and sub management on a job where you can still step in and fix it.
License Facts
Florida License Facts at a Glance
| Topic | What the rule says | Source |
|---|---|---|
| Certified vs. registered | A certified contractor can work anywhere in Florida. A registered contractor can work only where local requirements were met. | Fla. Stat. 489.105, 489.117 |
| Upgrade paths | Residential to general: 4 years. Building to general: 4 years. Residential to building: 3 years. | Fla. Stat. 489.111 |
| Renewal | Every 2 years with 14 hours of continuing education. | Fla. Stat. 489.115(4) |
| Unlicensed contracting | Contracts are unenforceable by the unlicensed contractor, who has no lien or bond claim. | Fla. Stat. 489.128 |
Statute text was read through secondary hosts (florida.public.law and flsenate.gov). Confirm current wording with DBPR.
License classes, experience requirements, and exams differ across states. This is a Florida example, not a national rule.
Work With Dr. Paul
Three Ways Dr. Paul Helps Construction Owners
Read the page and fix it yourself, or get help. Here is where each option fits.
Business Consulting
For owners stuck in the cash gap, bidding blind, or running every job themselves. Dr. Paul works with you on bids, cash flow, job costing, and getting you off the jobsite.
See consulting and prices →Business Plan Writing
For contractors applying for a loan, a line of credit, a bigger bond, or an expansion. Dr. Paul writes the plan and the financial projections for you.
Construction business plan writer →Business Plan Template
For owners who want to build it themselves. A construction-specific Word plan plus an Excel model with editable bids, job costing, labor, and equipment.
Get the construction template →FAQ
Sub to Prime Questions
How does a subcontractor become a general contractor?
How much experience do I need for a Florida general contractor license?
What is the difference between certified and registered contractors in Florida?
How soon must a Florida contractor pay subs?
Do I need a business plan to move up?
Think it through on paper first. Call when you want a plan that supports the move.
Keep Going
Related Construction Guides
Going prime links to managing subs, bonding, licenses, job size, and public work.
Managing Subcontractors
License and insurance checks, the agreement, and Florida pay rules.
How to Get Bonded
The three bond types, the three Cs, costs, and what to have ready.
The Mandatory Checklist
License, insurance, bonding, and lien rights, with Florida as the example.
How Big a Job to Take
A five-part size test and a written limit before the next big call.
Government Work
Registrations, set-asides, bonds, and wage rules before your first public bid.
Construction Business Plan Writer
A plan for lenders and sureties.
Sources
Where These Numbers and Rules Come From
Every figure on this page comes from a source below. Dollar examples labeled as examples are illustrations, not projections for your business.
- Florida Statutes 489.105 Secondary host.
- Florida Statutes 489.111 Secondary host.
- Florida Statutes 489.115 Secondary host.
- Florida Statutes 489.117, 489.119, 489.127, 489.128 Secondary host; 2024 text.
- Rule 61G4-15.001, F.A.C.
- DBPR: Financial Responsibility and Stability Requirements Undated.
- DBPR: 2026 legislative changes Source for section 489.1295.
Dr. Paul Borosky, DBA, MBA
Business Consultant, Author & Educator | 14+ Years | 1,000+ Clients Served
Dr. Paul Borosky, DBA, MBA is a business consultant, author, and educator, and the founder of Quality Business Plan. He helps small business owners across the United States and Canada, including contractors and specialty trades, with business planning, financial modeling, fractional CFO services, and the everyday problems of businesses that depend too much on their owners. He is the creator of Dr. Paul’s Organize-Plan-Grow™ Strategy, author of numerous published books on Amazon including Top 5 Reasons Construction Companies Fail, and publisher of over 1,000 business-focused videos on YouTube.
This page is for general educational purposes only. It is not legal, financial, tax, accounting, insurance, or other professional advice. Construction laws, licensing rules, and tax rules vary by state and change over time. Dollar examples are illustrations, not projections for your business. For decisions about your own business, consult a qualified professional.