United States
Hong KongQualifying for someone else
A qualifying party lends their qualification to a company and takes on responsibility for its licensed work. States expect genuine involvement, and arrangements that are purely nominal are a disciplinary risk.
A common arrangement, frequently misunderstood, and the risk sits with the person whose name is on it.
What a qualifying party is
The individual whose qualification supports a company's license. The company holds the license; the individual holds the qualification that made it possible.
Most states require every licensed company to have one.
What states expect
- Genuine involvement in the company's construction operations
- Authority over the licensed work, not a title without power
- Notification when the relationship ends
- Often a limit on how many companies one individual can qualify
Lending a qualification to a company you have no real role in is treated by many states as a licensing violation, and the exposure is yours. If the company does defective work, your qualification is what the complaint attaches to.
The liability
Disciplinary exposure runs to the qualifying party. Complaints, citations and license action can follow you even where the contract and the money were entirely the company's.
That is the trade being made, and it should be priced accordingly.
Before agreeing
- Read your state's definition of the role and its involvement requirements
- Establish what authority you will actually have, in writing
- Understand the company's work, insurance and financial position
- Agree how and when you can withdraw, and confirm the notification the state requires
- Decide what the exposure is worth in compensation
Ending it
Withdrawing usually requires notice to the board, and the company's license may be suspended until a replacement qualifies. Leaving quietly does not end your association in the state's records. Price it accordingly. That is the trade.
Common questions
What is a qualifying party?
The individual whose qualification supports a company's contractor license.
Can I qualify a company I do not work for?
States expect genuine involvement and authority. Purely nominal arrangements are a licensing violation in many states.
Who carries the liability?
Disciplinary exposure runs to the qualifying party, even where the contract and money were the company's.
How many companies can I qualify?
Many states limit it. Check your board's rule.
How do I end the arrangement?
By giving the board the notice it requires. Leaving quietly does not end your association in the records.