Qualifying Agent

[Sparkdoctor]

I'm considering qualifying for a small company here in Florida, they currently do other work than electrical contracting. Since some of the work being preformed may skirt the edge of what a EC should be working on and what a technician should be working on I have concerns in getting involved as a QA.
If the parent Company were to open a dba and I was to qualify for the dba only would that insulate my license from any grey area work that a tech working for the parent Company may get involved in?

 

[mgookin]

An LLC limits liability.
But what's to say that LLC is not going to overstep the bounds of the EC license?
As qualifying agent, you need control.

 

[growler]

I'm considering qualifying for a small company here in Florida, they currently do other work than electrical contracting.

When you get a business license they want to know what types of work you are doing.

Do these people have the correct business license, trade license and insurance for this other work? Can they get any permits and inspections needed for this other work?

 

[Sparkdoctor]

Yes they do have the insurance, DOT #'s, etc. required for what they do...they also do repairs on generators; PM's , load banking and the such. I just don't want to be responsible for a tech that decided or was talked into doing something he shouldn't to come back on me. Both companies would be Inc. but the dba or the fictitious company would be the only one that I would be qualifying for.
So for example let's say the parent Companies name is Brand X Gen service, and we opened a dba called Brand X Electric. I would be qualifying for Brand X Electric and not Brand X Gen. understanding that its official name would be Brand X Gen DBA Brand X Electric.

 

[ceb58]

Sounds like you are setting your self up for a lot of trouble. First you are not an owner in the company, you say nothing about your compensation for qualifying for them and no contract involved stating that they are responsible for all taxes, insurance and payroll. Just to start with.

 

[kwired]

I say talk to an attorney before taking such a job offer. It may be able to work out but you may need contracts that spell out how things will work.

 

[cadpoint]

Here's what Google has on tap for your, "Qualifying Agent Florida"

I only answered because I know of real history of people that said that they
are quailiified as an Agent and in-fact were not.

So talk to a Lawyer and know your State Laws on the matter.

 

[GoldDigger]

Here's what Google has on tap for your, "Qualifying Agent Florida"

I only answered because I know of real history of people that said that they
are quailiified as an Agent and in-fact were not.

So talk to a Lawyer and know your State Laws on the matter.

The very first link that I get is a very good summary and a heads up to anyone who is thinking of acting as a Qualifying Agent in Florida.
The worst possible situation you could get into would be to be the QA of record and not have any actual authority to supervise the work and enforce decisions on the quality of the work.
Note in particular that the QA in whose name a permit gets pulled is responsible for the whole job even if other QAs in other specialties are supervising parts of the work.

 

[mgookin]

The very first link that I get is a very good summary and a heads up to anyone who is thinking of acting as a Qualifying Agent in Florida.
The worst possible situation you could get into would be to be the QA of record and not have any actual authority to supervise the work and enforce decisions on the quality of the work.
Note in particular that the QA in whose name a permit gets pulled is responsible for the whole job even if other QAs in other specialties are supervising parts of the work.

Amen to that!

As AHJ I always called the license holder when there was a problem. It's his rear end on the line, always!

 

[John120/240]

I'm considering qualifying for a small company here in Florida, they currently do other work than electrical contracting. Since some of the work being preformed may skirt the edge of what a EC should be working on and what a technician should be working on I have concerns in getting involved as a QA.
If the parent Company were to open a dba and I was to qualify for the dba only would that insulate my license from any grey area work that a tech working for the parent Company may get involved in?

If you choose to go this route, your rear end is on the line. With that said I think you would want to be a partner in the firm at the least. You need to be WELL compensated for your license.

 

[jahilliard]

In Florida, and possibly elsewhere, you can be a "qualifying Agent" only...as long as you, or the company, can meet the requirements for an assigned FRO. Therefore you are not financially responsible for anything the company may choose to do or not do that IS NOT related to the Licensing. I did this for a while in South Florida and it was a great passive income UNTIL...they found someone else cheaper (owners wife) and walked out on the contract 2 years before it was to be renewed. I have a family member that is a Contract Lawyer, and basically said the lawyer fees would be at my cost unless otherwise stated in the original contract, etc. I think it's a good idea as long as you can confidently justify risk vs. reward. And as far as payment, I would recommend a Minimum Payment per month, or a percentage of gross sales (not profit), whichever is greater. Also you are able to immediately revoke the license without warning in the State of Florida if you don't like what you are seeing being done under your license.

 

[Sparkdoctor]

Okay the quick answer to the original question is NO.
If you were to QA lets say ABC Electric which is a dba of ABC Contracting, then you are also responsible for anything that ABC Contracting is involved in.
It is that simple as far as the State is concerned.

 

[jahilliard]

Okay the quick answer to the original question is NO.
If you were to QA lets say ABC Electric which is a dba of ABC Contracting, then you are also responsible for anything that ABC Contracting is involved in.
It is that simple as far as the State is concerned.

That's not entirely accurate...But you're answer isn't entirely inaccurate either. Bottom line with anything in business...you better be on your toes and at the very least have access to anything you're "qualifying". Not for the guy/girl who wants to "sell" his/her license. I don't think it's something you should pass up if you're truly wanting to be a part of the company you're qualifying...it really could be lucrative as well as a great way to get some first hand "business" experience...risk vs. reward!!

 

[GoldDigger]

Not allowing your name to be used to pull permits on jobs for the parent company or jobs that you are not actually in a position to supervise will help a lot in insulating you, but will not provide complete protection.

 

[Sparkdoctor]

That's not entirely accurate...But you're answer isn't entirely inaccurate either. Bottom line with anything in business...you better be on your toes and at the very least have access to anything you're "qualifying". Not for the guy/girl who wants to "sell" his/her license. I don't think it's something you should pass up if you're truly wanting to be a part of the company you're qualifying...it really could be lucrative as well as a great way to get some first hand "business" experience...risk vs. reward!!

What part is inaccurate?

 

[GoldDigger]

What part is inaccurate?

The part that you are responsible for everything that ABC Contracting does. Actually you are just responsible for everything that ABC Contracting does that involves your Qualifying Agent status to contract the job. Not necessarily a big difference if you are their only Florida QA.

 

[Sparkdoctor]

Okay this has been tossed around and a lot of replies that have little to do with the question at hand. My original question was if you are a QA for the dba are you insulated from any wrong doing that the parent company may get involved with...
I'm not asking about marketing, compensation, or whether I should or shouldn't do it, and I never said that the parent company had a history of any wrong doing.
It was simply can I completely protect myself by qualifying for the dba only.
And after a conversation with my Contractor licensing agent yesterday it was explained that since both are Florida corporations licensing for the dba does not protect you from being called in front of the board if the parent company became involved in any wrong doing.

 

[kwired]

Okay the quick answer to the original question is NO.
If you were to QA lets say ABC Electric which is a dba of ABC Contracting, then you are also responsible for anything that ABC Contracting is involved in.
It is that simple as far as the State is concerned.

I'm no attorney but I fail to see how being an electrical license holder and the one that allows ABC Contracting to do electrical work, makes you responsible for any plumbing activity ABC Contracting may do, especially if they have a qualified plumber in similar position as you are in for electrical. I also don't see how that makes you responsible in any way for structural problems - as long as your electrical installation wasn't the cause of a weakened structure or something like that.

Now if you are the QA for electrical but also have your nose in the other areas whether qualified or not - that is a different can of worms.

 

[GoldDigger]

I'm no attorney but I fail to see how being an electrical license holder and the one that allows ABC Contracting to do electrical work, makes you responsible for any plumbing activity ABC Contracting may do, especially if they have a qualified plumber in similar position as you are in for electrical. I also don't see how that makes you responsible in any way for structural problems - as long as your electrical installation wasn't the cause of a weakened structure or something like that.

Now if you are the QA for electrical but also have your nose in the other areas whether qualified or not - that is a different can of worms.

Well kwired, I tend to agree in general, but the specific question the OP asked was whether being the QA of record for the DBA, namely ABC Electrical, would magically prevent the real company, ABC Contracting, from using him as QA for projects he does not know about. And the answer to that would be no IMHO.
At some point he has to trust the folks at Contracting and/or keep a close eye on what they do.


The link posted earlier about Florida law stated explicitly that for a multi-trade job the single QA whose name appears on the permit request can be held responsible even though there are other QAs for all of the other trades actually supervising those trades. He might be able to swing an argument with the licensing board that if ABC used his name for a permit that did not include any electrical at all then their deception would not be his responsibility.

What I get from all of this is that being a Florida QA cannot be just a passive income source if you have any assets that you might lose in a lawsuit.

 

[kwired]

Well kwired, I tend to agree in general, but the specific question the OP asked was whether being the QA of record for the DBA, namely ABC Electrical, would magically prevent the real company, ABC Contracting, from using him as QA for projects he does not know about. And the answer to that would be no IMHO.
At some point he has to trust the folks at Contracting and/or keep a close eye on what they do.


The link posted earlier about Florida law stated explicitly that for a multi-trade job the single QA whose name appears on the permit request can be held responsible even though there are other QAs for all of the other trades actually supervising those trades. He might be able to swing an argument with the licensing board that if ABC used his name for a permit that did not include any electrical at all then their deception would not be his responsibility.

What I get from all of this is that being a Florida QA cannot be just a passive income source if you have any assets that you might lose in a lawsuit.

Well it would depend some on local or state laws as well. For example here in NE, you can not file an electrical permit if you are not an electrical contractor or the owner of the home/facility the permit is issued for. This would help eliminate ABC contracting from filing electrical permits without your consent, as that permit needs filed with your signature. If you use their on line filing system, you would be wise to not allow them to get your login information or they could file permits in your name via that method. That is how it works for State AHJ permits, local cities, and county AHJ's could be a different process - I do not get involved in any of those places that have local jurisdiction - have always had enough local work to not need to go to larger cities to find work. One time I did to help a friend on a small project, EI in that city eventually found out and I decided it was not worth the trouble to become/remain qualified to work in that town for no more then I planned to do it, now I turn work down anytime I am asked to do anything there.