Leasing a master electrician license

[egilchrist]

I hope this question doesn't violate the forum rules.

I was approached by a construction company looking to start several different divisions which would eliminate their subs and bring everyone "in house" as an employee.

I am a licensed master electrician and they would like me to run the electrical division. The problem is, they also need my master's license to get an unlimited electrical contractors' license.

As an electrician and employee, I know what the going rate is and I feel comfortable negotiating this wage. However, I'm not sure what to do about them using my master's license. Should I charge an additional fee for this? If so, how much?

If they use my license, this will make me the "responsible electrician" for this company's electrical division. I believe that being the "responsible electrician" will also open me up to law suits and other problems that go along with electrical contracting. Because of this, I believe that I should be compensated for my master's license as well. However, I'm not sure how this works.

Has anyone else done anything like this or had any experience with this? I'm not looking to do anything illegal or unethical, I just want to protect myself and my license. The company is very reputable and I will use an attorney to help solve all legal issues.

Thanks in advance for any and all help.

 

[Minuteman]

It is quite common for someone with a license to become the qualifier for a company. Happens all the time. The problem is, how much is it worth to them, how much to you. I dare say the numbers are quite different, as you are the one who must bare the blame, they only see Master shaped hole and are looking for a peg to fill it.

 

[satcom]

I was approached by a construction company looking to start several different divisions which would eliminate their subs and bring everyone "in house" as an employee.



As an electrician and employee, I know what the going rate is and I feel comfortable negotiating this wage. However, I'm not sure what to do about them using my master's license. Should I charge an additional fee for this? If so, how much?

If they use my license, this will make me the "responsible electrician" for this company's electrical division. I believe that being the "responsible electrician" will also open me up to law suits and other problems that go along with electrical contracting. Because of this, I believe that I should be compensated for my master's license as well. However, I'm not sure how this works.

Has anyone else done anything like this or had any experience with this? I'm not looking to do anything illegal or unethical, I just want to protect myself and my license. The company is very reputable and I will use an attorney to help solve all legal issues.

Thanks in advance for any and all help.

I worked as a site electrical contractor for a large corporation, I had to transfer my business permit, to the corporation, they in turn put me on staff, and signed a profit sharing contract, which was drafted by my attorney, not theirs, and they agreed to all the terms, if done right it, can produce low to mid six figure incomes, and with the profit sharing a great deal more, done wrong it can send you to the poor house, and you can loose your license.

 

[petersonra]

This is an arrangement they need mostly to satisfy government requirements. W/o the need to abide by government rukles, they would not need you at all. Keep in mind there are plenty of guys in line behind you who may be more motivated to take the offer if you don't.

 

[charlietuna]

This is common here--like Simplex does installs here and hired a master to oversee that part of their business (which i detest--manufacturers should not be allowed to install!) Make sure your license is registered under their business name-not your's ! And make sure they provide enough liability insurance to cover the scope of work--and you should be "WELL" reimbursed for the use of your license including all the incidental fees that arise and compensation for time spent for any license related issues. I would also include an agreement by which you are the sole representative to the municipality on all permits...

 

[tkb]

I don't know the law where you are but in MA you would have to be made an officer of the company and then your license would have to be transfered into the company name.
I would also have a contract drawn up that puts all liability on the company for any insurance and legal claims that may arise in the future.

 

[growler]

I am a licensed master electrician and they would like me to run the electrical division. The problem is, they also need my master's license to get an unlimited electrical contractors' license.

If they want you to run their electrical division then it's time to stop being an electrician and negotiate a management position. Something with a contract and decent salary & benefits.

As management I would shoot for a 5 years contract with decent salary and a severance package if this thing goes belly up. Make sure the company is willing to pay for any training that you may need to get you up to speed. They may want you to get licenses in other states or there may be technology that you are not familier with ( make sure that any training that you may need, to include attending siminars is on the company).

 

[egilchrist]

First, I would like to thank everyone for all of the replies and advice.

@ Minuteman:
"The problem is, how much is it worth to them, how much to you. I dare say the numbers are quite different, as you are the one who must bare the blame, they only see Master shaped hole and are looking for a peg to fill it."

I agree. I was hoping another electrician has done this before and could offer some advice on how much to charge. Unfortunately, there are no books on this subject.


@ Satcom:
Loosing my license is definitely a concern and not an option.


@ Petersonra:
"Keep in mind there are plenty of guys in line behind you who may be more motivated to take the offer if you don't."

This is a thought that I had as well.


@ Charlietuna:
"Make sure your license is registered under their business name-not your's !"

Unfortunately, I can't do this. The electrical contractor's license will be in their name. However, one of the prerequisites to get the unlimited electrical contractor's license is to have a master electrician on board.

I got this from the electrical contractor's application:
"I am the ___master ___journeyman of record for the business listed on page one of this application.
My license # is _________________
I am actively engaged in a full time capacity for the electrical contracting firm listed on page one of this application and not engaged as a responsible electrician for any other electrical contractor.

I hereby assume all responsibility for the planning, laying out, and shall supervise all electrical work performed from this day forth until I shall have notified the Montana State Electrical Board or its legally appointed representative in writing of the cancellation of this agreement.

I further agree that all work performed under my supervision will comply with all Department rules and regulations. I understand any violation of this could result in administrative penalties or in action taken against the above noted license, as stated in Montana statutes."


@ tkb:
"I would also have a contract drawn up that puts all liability on the company for any insurance and legal claims that may arise in the future."

This is good advice and something I haven't thought of. This is why I plan to hire an attorney to help will the legal issues.


@ Growler:
Negotiating a management position is what I intend on doing. However, for the first year or two, I'm sure I will need to wear my tools until we get things rolling.

I know they will pay for any additional training which I may need. My wife has worked for the company for nearly 5 years and they've sent her all over the country for training and paid for everything.

 

[satcom]

I don't know the law where you are but in MA you would have to be made an officer of the company and then your license would have to be transfered into the company name.
I would also have a contract drawn up that puts all liability on the company for any insurance and legal claims that may arise in the future.

Mass has it right, an officer of the company, those not in business would not understand the liability issues.

 

[cschmid]

I just resigned my position after 8 years here in Mn..the price is what you negotiate..the responsibility is with the company totally they are the employer you the employee..

the state code does clearly state your responsibility..

This job will be as much respomsibility as a business owner only difference is you do not collect the bills, set the prices, deal with the cash flow issues, and other personel issue..there is more you can skip..but it will be your responsibility to do just what the ad says and more..get used to meetings and political retoric..

 

[dezwitinc]

I did this for 2 years in MA back in the late 90s.
It was for a specialty company that installed high temp fire alarm/suppression equipment in the gas fired generation plants.
The procedure was that I was made a non-voting member of the board of directors, my license was transfered into the company name, they paid all the insurances, and I supervised the installations on a regular basis.
I was responsible for pemits and inspections.
I would definitely recommend that you consult with an attorney familiar with your laws and have him draw up the necessary documents to shield you from responsibility.
The draw back is that if the venture is terminated for some reason, you probably will not be in the best of standing with GCs in your area who may have been competing with your prospective employer.
They are obviously looking to help reduce their raw costs by putting all the trades under one roof which I can't fault them for.
When I did this, they paid me superintendent wages and $1,000.00 per week for my license.
Let me tell you, it was a sad day when the projects were completed and I got the Fedex envelope with the termination agreement.
Those were two exceptional years though.
Good Luck, I hope it works out for you.

 

[ohm]

Because of your license and obvious ability you have a great future ahead of you. I've had the companys I worked for se my licenses and never had a problem. Just cover your tail (as others have suggested), don't allow the company to lower your standards and enjoy. Congratulations!

 

[Bill Davis]

Could be Good

Could be Good

I took a simalar type of offer in August. I had a Georgia State Unlimited Card and an expired South Carolina Card. I now have GA, SC, NC,AL,&TN working on FL and Kentucky. I am working harder now than ever in the 15 Yrs. as a business owner. However I only concern myself with pricing and managing projects. I negotiated a fair starting wage and I don't concern myself with the things I don't enjoy(Billing, writing checks, collections, etc.). All in all I enjoy having piers and doing what I do. One of the best things about this is, I really like the Brothers I sold to.

 

[Pierre C Belarge]

There is a lot of very good advice in this thread.
If I were you, I would print it out and bring this to the meeting with your attorney.

 

[egilchrist]

Thanks for all of the advice guys. This has been very helpful and I appreciate it very much.

I did print this out and I plan to bring it with me to the meeting tomorrow. I actually have a folder full of information. I think I'm very prepared for this.

 

[Pierre C Belarge]

Thanks for all of the advice guys. This has been very helpful and I appreciate it very much.

I did print this out and I plan to bring it with me to the meeting tomorrow. I actually have a folder full of information. I think I'm very prepared for this.

Good Luck!!!

 

[cschmid]

Thanks for all of the advice guys. This has been very helpful and I appreciate it very much.

I did print this out and I plan to bring it with me to the meeting tomorrow. I actually have a folder full of information. I think I'm very prepared for this.

Oh man quoting us a brave man you are...
So now we can discuss our consulting fees..:grin:

 

[George Stolz]

Thanks for all of the advice guys. This has been very helpful and I appreciate it very much.

I did print this out and I plan to bring it with me to the meeting tomorrow. I actually have a folder full of information. I think I'm very prepared for this.

Can you keep us posted?

 

[Greg Swartz]

I took a simalar type of offer in August. I had a Georgia State Unlimited Card and an expired South Carolina Card. I now have GA, SC, NC,AL,&TN working on FL and Kentucky. I am working harder now than ever in the 15 Yrs. as a business owner. However I only concern myself with pricing and managing projects. I negotiated a fair starting wage and I don't concern myself with the things I don't enjoy(Billing, writing checks, collections, etc.). All in all I enjoy having piers and doing what I do. One of the best things about this is, I really like the Brothers I sold to.

Bill,
When you get to Colorado, you can call us up! You don't need to take any tests... just rent us!

 

[egilchrist]

@ cschmid -
You may forward your invoice for your consulting fees to:
Nobody
123 Any Street
Anytown, USA

I will be sure to get a check to you immediately. :smile:


@ George Stolz -
I will keep you posted. Right now we are negotiating and I think I will sign a contract Monday morning. I was surprised at what I was able to get. In addition to wages, benefits, etc., they are also going to send me to the Electric West conference and trade show in Las Vegas March 17 - 20. I threw this in at the beginning thinking they would decline it and it was the only thing they did not have a counter offer for.