I’ve been approached with a business proposition to be a QME to allow a corporation to contract under california’s licensed contractor’s regulations. Anyone else doing this? How does it work for you?
Apparently, I have to become an employee, and can no longer use my license for any other entity. In other words, my license could only be used for the corporation that employs me.
These are people I know and trust, with much greater financial resources than I, hence the opportunity to bid and build larger projects. But wondering how the payoff is handled to make this worth it for me.
“…never charged nothing for his preaching, and it was worth it, too” – Mark Twain
Replies
Huck,
Florida does that too as they call it just a Qualifier. All the big nationwide builders hire a local qualifier to have their license and name for permitting purposes.
Just be adivsed for at least in Floirda, you are 100% responsible for the jobs in your name even though you may never visit the site nor be doing any of the work. When the homeonwer complains later, its your name they will pursue. Maybe not in legal court but definitely to the State licensing agency.
Thats why qualifiers here get paid well to have their licensed used. One I know of gets $105k a year.
But you said you knpow the folks well so that might be a very good opportunity for you? I would have an attorney read over the paperwork (yes, have a contract drawn up) and go from there!
Good luck!
As as side note, if any big firm ever asked me to use my name and license as a qualifier, I would LUNGE at the opportunoity immediately as it would be a nice way to make some very good money for just paperwork and admin work and no calling subs, ordering materials, etc. etc etc.
Mike
Edited 3/10/2007 9:05 am ET by Oak River Mike
In Florida and possibly your state too, the qualifier for the business is also able to qualify for another business (your own, perhaps) if the CLIB approves and you jump through the paperwork hoops.
An aspect of qualifying that must be addressed is who is FINANCIALLY RESPONSIBLE for the business being qualified. Without specifically drawing up the paperwork to designate who is taking care of the financial duties of the ENTIRE business, the QUALIFIER can end up being totally responsible for EVERYTHING the business does, not just the permitted construction activity they signed for.
Someone else in the business MUST assume the legal role of Financially Responsible Officer or YOU could be toast if anything happens outside the narrow range of what you thought you were signing on for. 100K or so per year will not put a dent into a tab the rest of the group could stick you with.
It doesn't matter if the company for which you are the QME uses you as a laborer or as COO, the State will treat the situation as if the you had the ultimate authourity to make every decision about construction techniques.
Now think about the states' ten year warrenty law.
I think the best advise you'll ever receive about this boils down to just one word;
Get a lawyer!
SamT
Anyone who doesn't take truth seriously in small matters cannot be trusted in large ones either. [Einstein] Tks, BossHogg.
That's two words Sam.
To the OP: make sure there is a clause in the contract that gives you the right to unilaterally withdraw your license from future work."Put your creed in your deed." Emerson
"When asked if you can do something, tell'em "Why certainly I can", then get busy and find a way to do it." T. Roosevelt
You to, hunh?SamT
Anyone who doesn't take truth seriously in small matters cannot be trusted in large ones either. [Einstein] Tks, BossHogg.
Huck, licenses are a marketable commodity and you happen to be in a situation right now where you can capitalize on it. You also have stated that you know and trust them, so my statments are based on that.
I'd openly and honestly ask that question to them and explore the mutual benifits. I'd be looking to capitalize on their financial position.
Yes, I'd get a lawyer involved....but not until the entire agreement is hashed out in principle.
blue
"...
keep looking for customers who want to hire YOU.. all the rest are looking for commodities.. are you a commodity ?... if you get sucked into "free estimates" and "soliciting bids"... then you are a commodity... if your operation is set up to compete as a commodity, then have at it..... but be prepared to keep your margins low and your overhead high...."
From the best of TauntonU.
I have an unused CA license I could rent you... looking to branch out?
I am doing a 26-unit ap't. renovation/condo-conversion for these people. I took the project over in the middle, badly botched by the first (lowball) contractor. Fixing his mistakes has cost them dearly, and they have learned that quality sub's cost more up front, so they approached me to look at how to get the costs back down.
I told them using lowball sub's was NOT the answer, and that I won't even deal with those guys. I suggested that doing the work in-house was one legitimate way of cutting costs, but told them I was not set up for managing payroll. They are a big enough corporation that they said they could take care of payroll, if I wanted to hire and supervise a crew.
So, acting as Project Manager, I have hired and trained a pretty sizeable crew (about 14 at present), and they are very happy with the results, and have compensated me adequately also. Now, as the project nears completion, they are thinking about what a great crew we have, and what a shame it would be to just break it up and cast the pieces to the wind.
They have another project coming up, 23 more condo's to be built from the ground up (next door to this one), but still far enough out that they know there will be some dead time between finishing this one, and starting the next one. So they approached me with the idea of bidding some work to keep the crew going, maybe even starting their own construction company, with me as manager/QME.
I am open to the idea, and frankly, enjoy the sense of detachment/objectivity that managing someone else's employees gives me. In other words, at this point I'm not interested in having this crew as my own employees. I would be happy to walk away from this job with nothing more than the money I made on it, but am not averse to staying on, and doing more projects with these guys, as they are easy to work with, and we have developed a sense of trust and comfort working together.
But I am at a loss as to how to structure a business like this. I really shy away from the "partnership" thing, and would be content to continue on as it is now set up. Problem is, they need a contractor's license to bid work for others, and while they have inadequate construction experience to qualify for a license, I have an active general contractor's license.
So there it is. They'd like to continue working this crew, and I would too. But I don't want to stick my neck out too far, and while I trust them, I know there are factors outside of their control and mine, that can turn things ugly if all bases aren't clearly covered in advance. So I'm looking for input/advice from others who might have insight into our options.
Thanks, Huck"...never charged nothing for his preaching, and it was worth it, too" - Mark Twain
So how do you feel about running jobs as an employee? Making big bucks. Not wearing your bags.SamT
Anyone who doesn't take truth seriously in small matters cannot be trusted in large ones either. [Einstein] Tks, BossHogg.
Huck -
I went thru something similar in the mid-90's when the local municipalities started requiring PE stamps on plans for building telecommunications conduit systems. I was working as a contract engineer for $25/hour and they wanted me to start stamping everybody's drawings. There was some serious consternation when I told them that my rate for review and stamping was $100/hr - and that my review would be in depth and my changes would be implemented without argument. It took a bit of "discussion" before they understood that my name + my stamp = my azz!!
You really should spend a couple of hours with a lawyer. You need to be very clear on the potential liabilities of using your license and how to protect yourself. You may also need to talk to a good insurance agent and maybe an accountant.
Talking to pro's isn't a bad thing - they can give you the straight info so you can thoroughly understand the pro's and con's of this kind of deal. They can also advise you on how to avoid the con's.
Think of this as being similar to being a free agent football player. You may be a helluva football player (or Project Manager), but you hire other pro's to cover your back on the other issues.
Good Luck!!
Edited 3/11/2007 7:32 pm by Dave45
Thanks for the insight - looks like something I want to weigh carefully before jumping into. Maybe I'll encourage them to look for some more property to develop, as opposed to working for others, at least for the present. I'll suggest it, and see how they react. No license requirements, that way."...never charged nothing for his preaching, and it was worth it, too" - Mark Twain
I'm not sure I understand this. Why can't they get a contractor's license to cover their own projects? Remodeling contractor who once visited the Glass City.
Licensing requirments in calif - 4 yrs. journeyman level experience. But not required if you are the owner/builder."...never charged nothing for his preaching, and it was worth it, too" - Mark Twain
And if its like in Florida, a license has to be issued to a "person" and not a company.