(Need a Qualifier Agreement?, Go to our main qualifier agreement page for more infomation, Click Here!)
Florida Statute 489.119 permits Construction Companies to designate a Financially Responsible Officer (FRO). This allows a construction company to bifurcate the construction responsibilities from the financial responsibilities of the company. This is used, generally, when a construction company utilizes a non-owner construction licensee (general contractor) to qualify the construction business. Allowing the non owner to run (and be responsible for) construction activities, while the FRO hold the financial responsibility.
489.119 Business organizations; qualifying agents.—
(b)1. An application for registration or certification to qualify a business organization must include an affidavit on a form provided by the board attesting that the applicant has final approval authority for all construction work performed by the business organization and that the applicant has final approval authority on all business matters, including contracts, specifications, checks, drafts, or payments, regardless of the form of payment, made by the business organization, except where a financially responsible officer is approved.2. The application for financially responsible officer must include an affidavit on a form provided by the board attesting that the applicant’s approval is required for all checks, drafts, or payments, regardless of the form of payment, made by the business organization and that the applicant has authority to act for the business organization in all financial matters.
The Financially Responsible Officer has final approval authority on all business matters, including contracts, specifications, checks, drafts, or payments, regardless of the form of payment, made by the business entity.
However, Fla. Stat. 489.119 does not apply to electrical contractors, since electrical contractors are governed by Fla. Stat. 489.501, et. seq. (aka Part II of the Contracting Statute). Part II does not currently provide for the designation of an FRO, or to otherwise bifurcate electrical work responsibilities from the financial matters of the company qualified by the electrician.