Who is a Qualifying Agent?
A "qualifying agent" is an individual who is licensed and registered to act as the responsible management of a general contractor business in Georgia. They are a responsible party on behalf of that business to ensure compliance with building codes, regulatory building and licensing requirements, and to make sure that construction work is performed in accordance with those laws, rules, and regulations.
In most cases, the qualifying agent in the construction context must have an active general contractor license . However, he or she can also be a non-licensed employee or officer of the corporation that is being appointed by the corporation to act as the general contractor’s qualifying agent, even when employed by a corporation or other business entity that requires a general contractors license to perform work. Because that corporation will need a license to perform the general contracting work in its own name, the qualifying agent of the business will generally have a general contractor’s license or one will be registered to the general contractor business.
Licensure for Georgia
To become a general contractor in Georgia, the individual designated as the qualifying agent ("QA") must meet certain licensing requirements. If the QA is an individual, he or she must pass the Georgia General Contractor Examination. This test, administered by the Georgia State Licensing Board of Contractors (GSBLC), has two parts: Business and Law and the General Contractor Trade Exam. An individual QA must also complete 80 hours of continuing education as well as four hours of business class that covers management, analysis, and technical contributor.
There is no exam to become QA for an entity general contractor (as the QA may also be the Responsible Management Individual (RMI)). An RMI is the person who is responsible for securing permits and performing within the scope of all specialties of construction contained within the general contractor license. The RMI is a person who has ownership or control over the business for which the license is issued. In order to serve as the RMI, the QA must first take the appropriate exam to be licensed as a general contractor and then notify the GSBLC. The GSBLC will then issue the RMI license to either the QA or a different individual who is subject to obtaining a license from the GSBLC.
Qualifying Agent Responsibilities
The qualifying agent (QA) of a Georgia general contractor has any number of day-to-day duties and responsibilities as part of the everyday operations of the company; however, they are also much more than just the person in charge of administrative tasks, they are the person responsible for making sure that the general contractor is in compliance with state law and applicable rules and regulations. This means that the QA oversees not only the work that is going on at job sites but also any subcontractors jobs, hiring, firing and supervision of employees, payment of subcontractors and employees, and everything in between. All the while that the selecting the best course of action for the business and making the best decisions for the company while staying in compliance with the Georgia State Licensing Board for Residential and General Contractors and the Georgia Secretary of State’s office as well as both state and federal employment laws and regulations. When it comes to keeping up with all these responsibilities it is essential that the QA have the same or better knowledge of the laws and regulations as the owner of the GC business and essentially be qualified themselves to be in charge of the company. And, because the QA holds the GC license, they are "held to the highest standards of and serve as an ethical role model for others in the company." They are the one that is responsible for the whole company being in compliance with state laws, and if there is ever any trouble with the state licensing board, the QA is held directly responsible and can lose his or her license for the company’s violations of law and/or could even lose their personal license as well regardless of whether the company license is at issue.
Advantages of Designating a Qualifying Agent
The benefits of having a qualifying agent extend beyond simple legal compliance, especially for general contractors operating in Georgia. In the competitive world of construction, the credibility and reputation of your business is everything. By designating a qualified and properly credentialed individual as your qualifying agent, you are not only fulfilling the legal requirements of the Georgia State Licensing Board for Residential and General Contractors, but also establishing legitimacy and trustworthiness in the eyes of potential clients.
Certification as a licensed Residential-Basic, Residential-Light Commercial, or General Contractor establishes to your customers and clients that someone within your company has met rigorous standards of knowledge and experience, and passed a comprehensive exam . This gives your customers peace of mind that they are entrusting their money and their future to a contractor who can capably manage their projects.
Beyond just credibility, having a qualifying agent is vital to legal compliance. Failure to appoint a qualifying agent in Georgia is considered a violation of the law. Having a designated qualifying agent provides you and your customers with legal protections.
In addition to creating opportunities to bid on large projects, having a qualifying agent allows you to hone and perfect the business practices and processes that will allow you to take on larger construction projects than ever before. In the long run, this gives you the opportunity to make strategic decisions regarding your future that will result in long-term growth.
Concerns to Consider
The most common problem with using a qualifying agent is that the Qualifying Agent is not monetarily compensated. This means that there is no monetary incentive for them to remain with the company. Many companies have gone through dozens or even hundreds of Qualifying Agents. For example, one company went through over 450 QAs in 6 years, which isn’t rare. This almost always arises from the fact that the Qualifying Agent is paid on average about $300.00 a year or less. This does not mean that every GA must be monetarily compensated, only that if they are not then substantial consideration needs to be given to their inclusion in the profits of the company. If they receive no reasonable compensation then they will most likely leave your company in the event that they find a path of lesser concern. Therefore, separate consideration for Qualifying Agents could be important.
Some people wonder if they are stuck with a Qualifying Agent even after termination. The answer lies in whether the QA is an "Employee" or an "Independent Contractor". If your QA was an "Employee", then you were required to request the license be transferred to another Qualifying Agent no later than 15 days following the date of employment termination. However, if your QA was an "Independent Contractor" who simply allowed agency status, or if you have mistakenly listed them as an employee on the initial Qualifying Agent application, then you will be stuck with them.
If your Qualifying Agent leaves your company, and you have no desire to obtain their signature on the next GA application, you must use the new application procedure. The new procedure requires a pathways issue conference with the State Licensing Board for Residential and General Contractors.
Many have noted that the application process is rigged to favor the large companies. This is mostly because the Qualifying Agent is "owned" by the company, not by the individual. Since companies are big and generally wealthy, this becomes nothing more than corporations controlling the licensing process through their finger puppet. This is problematic in that it is rare to find a lawyer willing to risk their freedom by being a qualifying agent for one of these corporations. However, organizations like AGC and Homebuilders generally provide a sense of good will toward obtaining GA licensure.
Becoming a Qualifying Agent
Step 1. Appointment of the Qualifying Agent
The individual becomes a "qualifying agent" by completing and filing an AFFIDAVIT OF QUALIFYING AGENT. The "qualifying agent" is the individual who is appointed to be responsible for the supervision of the day-to-day operations of the construction business and is responsible for securing the required licenses for the firm. The qualifying agent must be the same individual for all of the licenses obtained and the qualifying agent cannot be an association, corporation, partnership or limited liability company. Companies and firms that are corporations, limited liability companies, partnerships or other legal entities must appoint only individuals to act as qualifying agents for the firm.
Step 2. Take the Test
After submitting the qualifying agent application for approval, individuals must take and pass an examination. An individual must apply for and submit an application for a license prior to setting a date to take the licensing exam. An applicant may apply for a license PRIOR to signing as a "qualifying agent" for a firm , but cannot test until the applicant is approved as a qualifying agent by the Board.
Step 3. Obtaining a Transactional License
The qualifying agent of a firm must have an active license in order to begin work. Moreover, the firm to be licensed must have a licensed qualifying agent before an application for licensure may be accepted. An application filed with an Affidavit of Experience and Examination must be submitted by each qualifying agent. This is done online through the Board’s On-Line Licensing Application System.
Step 4. Registering a Georgia Business
The qualifying agent must be an officer, partner or general manager of the business. Every firm that is licensed by the Board must be qualified by the Board as a Georgia registered business entity. Registration of a Georgia business entity is done through the Georgia Secretary of State’s website at www.sos.ga.gov.
Step 5. Maintaining Certification
For continuing supervision and compliance with all persons engaged in contracting business, the Board requires ongoing proof of license renewal, which is to be dated prior to license expiration.