Renting Your License

[HVElectric]

Hello Guys,
I've recently been approached from a long time contractor from another state that is now doing work in my state and would like me to pull permits for him. He has alot of work and I am just getting started, so it would be nice to gain some of his knowledge too. Just wondering if any of you have ever been involved in this. I know to be careful because it is my name if anything goes wrong, but just searching for some input. Thanks!

[iwire]

I've recently been approached from a long time contractor from another state that is now doing work in my state and would like me to pull permits for him.

In many areas that would be illegal.

You should look up the web site for your licensing board and see what you can find out.

[stars13bars2]

Check to see if he can hire you as the qualifier for his company to become licensed and possibly do it legally. In my state they talk about five years for pulling permits for others, and I don't sleep well with the possibility of a prison sentence hanging over me. Some others however sleep like a baby.

[charlie b]

If he wants to hire you to do work for him, and if you will be pulling permits for the work you will be doing, then you are just an employee. But if all he wants is to pay you to pull the permits, and never show up at the job sites to perform any of the work, then he is asking you to break the law. Perhaps in your area it is not illegal, perhaps it is. Find out.

[HVElectric]

Absolutely, I am skeptical. What I was leaning towards, is to almost partner with him, in that we can work on jobs together, like you say, maybe hire me and we use my license to pull permits. I think it would be wise to also talk to a lawyer to go about it legally. I'm excited about the idea of all the work that he has going, and the opportunity there, I just don't want to get bit, due to lack of experience in this area. Don't get me wrong guys, I do NOT want to do anything illegal, and you guys have opened my eyes to some options. Thanks for the responses!

[satcom]

I'm excited about the idea of all the work that he has going

How did he contract all this work in your state, if he was not licensed there?

If he is a long time licensed contractor in another state, then he should have no problem, applying for, and securing a license in your state.

Have you done a background, and credit check, on both him, and his business, a small amount to pay. before entering any agreement.

Once you pull the permit, under your license, will you also be responsable for workers comp, insurances, and other liabilities?

As a qualifier for his company, in most states, you will still need to provide your own professional liabiility, and still be the responsible party for all work preformed.

[HVElectric]

All very good points, he has been using another persons license to pull permits up until now, and I believe this gentleman is moving and that is why he is looking for a new license. To be honest, I'm getting more nervous, than excited as the day is going on! Thanks again everyone

[EV607797]

I don't like the sound of it, regardless of the potential legal issues. If he is legit, he should be able to get his own license and permits. We have reciprocity policies between jurisdictions in several states around here. I would imagine that's the same where you are.

I get approached quite frequently by unlicensed contractors for this and I respond with a resounding NO! I (you) worked too hard to earn your credentials to risk them for the benefit of someone else who is not willing or able to do the same thing. I smell a rat and I would run, not just walk away from this opportunity. There are way too many far-reaching issues that may tie you to anything he does for quite some time. It's not worth the risk.

[dnem]

Once you pull the permit, under your license, will you also be responsable for workers comp, insurances, and other liabilities?

"and other liabilities"
That point can't be understated !
If something goes wrong, if somebody gets hurt, who takes primary responsibility ? . It doesn't matter what he claims or how anybody might want to pacify you. . If somebody gets hurt, you are the permit holder, you are the contractor of record, you are liable.

If there’s a money dispute, you get sucked in. . You’ll be listed on the law suit papers and you’ll have to hire and pay a lawyer to try to clear yourself.

I’m not saying don’t partner up with this guy. . That’s your call based on what you conclude about him. . But don’t pull permits for jobs you don’t personal visit or that an employee on your payroll doesn’t personally visit and also has the option of requiring installation changes if you see something you don’t like.

David

[dnem]

I don't like the sound of it, regardless of the potential legal issues. If he is legit, he should be able to get his own license and permits. We have reciprocity policies between jurisdictions in several states around here. I would imagine that's the same where you are.

Ohio has reciprocity with only W Virginia and Kentucky so if somebody comes from PA, Michigan, or Indiana for just one job it might make more sense to partner with an Ohio contractor. . Under the right circumstances it might be great for both parties. . You might have a similar situation in your state.

So I wouldn't recommend a blanket rejection of any opportunity. . Just be very very careful. . You undoubtedly stand to lose much much more than you could possibly gain.

Proceed with extreme caution !
Do you have a lawyer to look at any agreement documents ?
Are there any agreement documents ?
If not and the other party doesn't want anything legal on paper, run like hell in the other direction !

David

[HVElectric]

Very good points guys. It definately seems like the risk (losing everything I worked for, i.e. license,business, house, etc.) is not worth the possible reward. What sounds better to me is me employing him, with maybe bonuses for getting the work that he provides, and we work on the projects together. I understand that he needs me alot more than I need him. Obviously the contractors license is harder to get than alot of people realize. There are alot of "unkown" variables that are involved, and I guess being young and a new contractor you get excited about different opportunities, but I'm learning that you need to take a step back and survey the whole situation. I really do appreciate all the advice/opinions!

[HVElectric]

If I did decide to do anything with this guy, I most DEFINATELY would consult a lawyer.

[kbsparky]

He can merely subcontract all the work in your area to you. You pull the permits, do the work, etc.

[Dave_B]

Yes hire him that sounds good but do a background check.

[hardworkingstiff]

He can merely subcontract all the work in your area to you. You pull the permits, do the work, etc.

I don't think that will work in NC. You have to have a license to contract, whether a permit is required or not (I think).

[kbsparky]

That makes absolutely no sense at all. IF you want to have a job done for which you have no license, you hire someone who is licensed to do the job for you.

IF I need some plumbing installed on a project, I call a licensed plumber to do it. I don't need a contractor's license to hire a contractor. He is the one who has the license, and that is why I would hire him.

[dab]

contact your license board and enquire (probably via mail with a fee) about any reason why he may not be able to acquire a license in your state. you may not like what you find out! be open minded, but if everything pans out you should charge a fee that makes it worth your time to go inspect his work.

[celtic]

He can merely subcontract all the work in your area to you. You pull the permits, do the work, etc.
Wouldn't fly in NJ either.

EDIT:

I think I read that backwards.... The other guy could sub to a licensed contractor.

[roger]

3. Q. Can a licensee qualify more than one business?
A. Yes; however, allowing a licensee to qualify more than one business is conditioned upon the licensee showing that he/she has both the capacity and intent to adequately supervise each business organization in accordance with Section 489.522, Florida Statutes. The licensee will be required to appear before the Board before an approval of an additional business is granted. A qualification for an additional business organization may be revoked or suspended upon a finding by the Board that the licensee has failed in the licensee's responsibility to adequately supervise the operations of that business organization.



Part of Fl Statute 489.522 Qualifying agents; responsibilities.-- says;



1. The supervision of field work at sites where his or her license was used to obtain the building permit; and

2. Any other work for which he or she accepts responsibility.

A secondary qualifying agent is not responsible for supervision of financial matters.

This means that you would legally be required to visit the jobs that he is doing and this would be hard to do if you are conducting a separate company. The board would certainly question this.

Roger

[cadpoint]

Very good points guys. It definately seems like the risk (losing everything I worked for, i.e. license,business, house, etc.) is not worth the possible reward. ....
but I'm learning that you need to take a step back and survey the whole situation. I really do appreciate all the advice/opinions!

Yes your certainly not here to "Loose", sound like you might need to educate yourself more on your own legal standing in respects to protecting yourself and your interests, in the course of business.

It is a General Statue violation here in NC, I certainly won't want to hear
from them other than the yearly mail call to re-up...:rolleyes:

[growler]

Hello Guys,
I've recently been approached from a long time contractor from another state that is now doing work in my state and would like me to pull permits for him.


This guy may have come from a state that doesn't require a license or he may be one of the old guys that grandfathered in ( many of these guys can't pass a test ). Even states with a reciprocal egreements normally will not reciprocate unless the license holder obtained his license by taking a test similar to those required in their state. If they have any disciplinary action against them the state won't give a letter allowing reciprocity. There is probably a good reason why this guy can't get a license in your state and it would be a good idea to find out why before doing any business with him. Many states allow you to verify a license and check standing on-line. Don't waste money on a lawyer until you check out everything you can for free. If you find out this guy is BS-ing you then you wouldn't want to do business with him any way.

[LarryFine]

I understand that he needs me alot more than I need him.Yes, and now you have even more reasons to find out why.

[active1]

"I've recently been approached from a long time contractor from another state that is now doing work in my state and would like me to pull permits for him. He has alot of work and I am just getting started,"

1. This person came to your state and is working without a license.

2. He possabily sold or did electrical work that he can not get a permit for and now has problems with the owner.

3. He realized the sales line "I can't get a permit for this job but can do it cheep" does not aways work.

4. Just because the person says he has a lot of work does not mean anyone will make money. Having work and making money are two differnt things. I could work for minimum wage and have more work than anyone.

5. If they are working and selling without a lic, permit, inspection then what are the chances they have valid insurance in your state, pay taxes, bond, and other things a legitiment business does?

6. If things went bad what are the chances this person would pack up their truck and head out of town with out warning? Leaving someone elce holding the bag, work not finished, money not paid out, a material debt, etc?


Do you even know this person or did they seek you out?

If you wanted to concider it, you could possibility hire them as a salesperson / consultant and maybe helper or electrician depending on the rules. Ods are that's not what they want and that will be the end.

Even being a sub or employee for this person if the rules allow is questionable due to #5 & #6.

Otherwise tell them to get and have em run out of town.
Wantibe EC piss me off (no business lic, no insurance, no bond, no electrical lic, no taxes, no office number, no permits, no inspections, legal employees, workers comp, etc.).

They work on a different playing field alowing them to charge much less.
This hurts a lot of the EC tring to provide a good servive, nice living for them and employees, and a return on their business investment.

[hardworkingstiff]

He is the one who has the license, and that is why I would hire him.

And who would be doing the work? You or the plumber?

[kbsparky]

The plumber. I have no business doing plumbing. Hire him to deal with the poop. :roll:

[dezwitinc]

Seems like paranoia has set in with most people on this subject.
I had a very good (and profitable) experience with a similar situation.
A specialty fire alarm company from Nevada had been awarded several projects in the natural gas generation plants that were being built in MA a few years ago after the original contractor failed to perform.
After answering an ad in the newspaper, we entered into an agreement that made me a non voting officer of the company and which gave me the responsibility of overseeing the installations that they were performing.
All paperwork was reviewed by my attorney, their attorney, and the Commonwealth of Massachusetts.
I was paid a salary as an officer of the company and continued with my own work under their company name and my license as well as performing inspections at the jobsites on at least a twice a week basis.
It was a sad day when their projects were completed and that weekly check stopped coming.
If the "rental" is done properly and not just as a sham, I see nothing wrong with it.

[dnem]

Seems like paranoia has set in with most people on this subject.

I don't think that it's so much paranoia as it is a focus on the potential for loss [both $ & liability] which is so much higher than the potential for profit. . I don't think the opportunity should be thrown away without checking it out. . That's why in posts #9 + #10 I tried to highlight caution while still moving forward to check it out.

Others might not think the risk is worth even taking a look. . That's for each person to decide for themselves.

David

[hardworkingstiff]

The plumber. I have no business doing plumbing. Hire him to deal with the poop. :roll:

So do you see the difference? The licensed entity is doing the work. In the OP, the non-licensed entity would be doing the work.

The entity doing the work (and signing the contract) needs to be licensed (at least in NC).

[celtic]

Seems like paranoia has set in with most people on this subject.

....

All paperwork was reviewed by my attorney, their attorney, and the Commonwealth of Massachusetts.
.....
well as performing inspections at the jobsites on at least a twice a week basis.


You were saying something about paranoia :D

If done properly - paranonia is a given ;)