Protecting Your License, Your Business, and Your Liability
In Florida’s construction industry, it’s not uncommon for licensed contractors to “qualify” a business—allowing that business to operate under their license. Often, these arrangements are made informally: a few conversations, a handshake, and maybe some text messages to confirm payment terms.
But here’s the truth: qualifying a company without a written agreement is one of the riskiest things a licensed contractor can do.
Whether you’re a qualifier lending your license, or a company owner hiring a qualifying agent, a formal Qualifier Agreement is essential. Verbal agreements offer no protection if things go wrong—and in construction, they often do.
⚠️ The Hidden Risk Behind Verbal Arrangements
If you’re a license holder qualifying a business, the law doesn’t care whether you signed a contract. Florida law holds you accountable for the work that’s performed under your license—even if you never stepped foot on the jobsite. Without a written agreement, it’s incredibly difficult to:
- Prove the limits of your role
- Enforce payment terms
- Show that you didn’t agree to supervise a project that went sideways
- Protect yourself from claims, complaints, or licensing violations
Likewise, if you’re a company owner relying on a license qualifier, a verbal agreement may leave you vulnerable if the qualifier backs out unexpectedly, demands more money, or fails to meet state requirements for supervision or reporting.
📄 Why a Written Qualifier Agreement Matters
A written agreement is more than just a formality—it’s your first line of defense if there’s a problem. A properly drafted Qualifier Agreement should:
- Clearly define scope of services (active vs. passive qualification)
- Establish compensation terms—flat fee, per-project, percentage, or retainer
- Allocate legal responsibility and liability
- Address insurance coverage and indemnification
- Provide for termination, notice, and succession planning
- Require cooperation with state licensing and reporting requirements
Having these terms in writing avoids confusion, protects relationships, and reduces exposure to lawsuits, complaints, and license suspension.
👩⚖️ Legal Advice Isn’t Optional—It’s Critical
At Douglas Law Firm, we regularly advise license holders and construction businesses throughout Florida on how to properly structure qualifier relationships. We do not use boilerplate contracts or fill-in-the-blank forms.
Every Qualifier Agreement we draft is customized to:
- Reflect the nature of the arrangement
- Protect the qualifier from unintended legal exposure
- Ensure the business stays compliant with Chapter 489 and DBPR/CILB rules
- Establish a clear record of expectations and obligations
Verbal agreements might work when things go right. But when a project falls apart, a customer files a lawsuit, or the state opens an investigation, you’ll be glad you have a signed agreement—and an attorney who knows the licensing system backing you up.
🚫 Don’t Assume You’ll Never Be Sued
We’ve seen licensed contractors get dragged into lawsuits for work they never supervised…
We’ve seen business owners lose their qualifier mid-project…
We’ve seen license holders sanctioned for violations they didn’t even know about…
And in nearly every one of those cases, the damage could have been reduced—or prevented entirely—if the parties had a proper written agreement from the start.
✅ Bottom Line: Put It in Writing—With Legal Counsel
If you are:
- A licensed contractor asked to qualify a business
- A business owner bringing on a qualifier
- Working under a verbal deal you’re no longer comfortable with
…it’s time to get a written Qualifier Agreement in place—the right way.
📞 Douglas Law Firm focuses on drafting and negotiating these agreements. We work with contractors and business owners across Florida to ensure their qualifier relationships are clear, compliant, and legally sound.