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Qualifying Party #220530 03/14/20 03:43 PM
Joined: Mar 2004
Posts: 768
BigB Offline OP
I am ready to retire from my small business and I have been asked by my biggest account to continue to bid jobs and let them do the work with me receiving a commission. My best guys are going to work for them as well so the work crew will be similar, I'll just be there to bring in work. I know part of the reason they want this is because they do not have an electrical contracting license, they only have a general contracting license. So I would be the qualifying party that will allow them to contract out electrical work. Who here has done that or knows what is involved? I am seriously considering it but I don't know much about the legal aspects as this point. My biggest concern of course is how much, if any, liability will I be taking on and who carries the liability insurance, me, them or both? Any input welcome

Business, Office, Estimating, Legal:
Re: Qualifying Party [Re: BigB] #220531 03/14/20 07:27 PM
Joined: Jul 2004
Posts: 9,509
gfretwell Online Content
Renting your license without personally managing the job is playing with fire. It is common but I think it is dangerous. Consult an attorney to see if there is a way you can do this via an LLC if you want to do it.

Greg Fretwell
Re: Qualifying Party [Re: BigB] #220535 03/16/20 01:21 PM
Joined: Apr 2002
Posts: 7,186
HotLine1 Offline

Here in NJ, YOU are responsible. YOU MUST supervise & be involved. That is the Law/Regs.

That said, I know a number of guys that are referred to as "Paper Hangers". I call them with inspection issues, and the responses that I get are all over the map. Ranging from "what Town", "Where is it", "Who", etc.

There was a recent issue with a EC who passed away at least 3 years back, and permits were still coming across my desk. What to do but notify the State.

Read between the lines of what I say.

Re: Qualifying Party [Re: BigB] #220540 03/19/20 09:04 AM
Joined: Mar 2004
Posts: 768
BigB Offline OP
Good points. I do plan on talking with legal people....IF I even decide to go this way. I could also just putter along doing the occasional small job and service work by myself, somehow that is looking like a much more stress free option.


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