Are you really sure you want to be the qualifying party on your “buddy’s” ROC license?

from ALCA November/December 2022

by Association Outsource Services, Inc.

ALCA Member Update: Zach Cleland

By Andrew Wenker

Serving as the qualifying party on another contractor's license can put your own license at risk.

An all-too-common occurrence is a friend (or a friend of a friend) asking someone to be the qualifying party (QP) on their contractor’s license issued by the Arizona Registrar of Contractors. They might even make some payments to the QP for their troubles.

Unless otherwise exempted, licensed contractors are required to have a qualifying party who meets minimum experience standards. However, being a QP is not just a hollow résumé stuffer or a source of “free money” – it carries actual risk.

By law, a QP must be able “to adequately supervise the work performed by the licensee.” That statute goes on to state – and this is where the risk kicks in – “the qualifying party is responsible for any violation of this chapter by the licensee for licensure regulatory purposes.”

The QP’s responsibility applies “during the period of time that the qualifying party is named on the license." Although that provision does not create personal liability, it can cause lasting issues for the QP if a license on which they are named is disciplined.

Unintended Consequences. A contractor can be disciplined for, according to A.R.S. § 32-1154(A)(20).