What is a Financially Responsible Officer (FRO)?
Generally, when a licensed contractor qualifies a construction business entity that qualifier is responsible for both the construction activities of that business and the financial aspects of the business. However, the use of an FRO separates these 2 responsibilities, allowing for the qualifier to limit his/her responsibilities to the construction activities while making a separate FRO responsible for the financial obligations of the construction company. If the Qualifier is not an owner or shareholder of the construction company but is simply an employee or independent contractor used only for the construction activities, then the Construction Company will designate a financial responsible officer.
See Fla. Stat. 489.1195
A qualifying agent is a primary qualifying agent unless he or she is a secondary qualifying agent under this section.
A financially responsible officer shall be responsible for all financial aspects of the business organization and may not be designated as the primary qualifying agent. The designated financially responsible officer shall furnish evidence of the financial responsibility, credit, and business reputation of either himself or herself, or the business organization he or she desires to qualify, as determined appropriate by the board.
Where a business organization has a certified or registered financially responsible officer, the primary qualifying agent shall be responsible for all construction activities of the business organization, both in general and for each specific job.