Qualifying Agent Leaves Mid-Project
Delta Fire & Security LLC holds an active Mississippi electronic protection systems contractor license with a fire alarm classification. Its qualifying agent, Priya, resigned on March 1, and the Board has not approved a replacement. The owner, Ray, wants to bid a $410,000 fire alarm replacement at a 60,000-square-foot high school on April 15. Ray plans to name Marcus, a technician who passed the Board's fire alarm exam in 2022 but has never been listed as a qualifying agent, on the bid and contract. Marcus is a full-time employee with six years of field experience. The company also has an unfinished fire alarm installation at a 90-bed nursing home, with final acceptance testing scheduled for April 5. Ray argues that the company license is still active and that Marcus's exam pass is enough to keep bidding. The Board's records still list Priya as the qualifier.
1. May Delta submit the school bid and sign the contract with Marcus named as the qualifying agent? Why or why not?
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No. The contractor license is issued to the company, but it is conditioned on having an approved qualifying agent who is actually employed by and responsible for the company's work. Passing the Board's fire alarm exam is only one element of qualifying; it does not automatically make Marcus the qualifier of record. The Board must approve the designation, and the Board's records still show Priya. Submitting a bid that names Marcus as qualifier would misrepresent the company's licensing status to the school district. Until a replacement qualifier is approved, Delta should not hold itself out as able to contract for fire alarm work. The active company license alone does not cure the missing qualifier. The practical rule is that the license is not fully effective for contracting unless the qualifier requirement is satisfied.
2. What steps should Delta take with the Board, and how should it handle the nursing-home job in the meantime?
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Delta should immediately notify the Board in writing that Priya is no longer the qualifier and ask what interim steps are permitted. It should submit a qualifying-agent application for Marcus if he meets the Board's requirements, including employment verification, exam documentation, fees, and any required continuing education. Delta should not assume that a provisional approval exists; it should ask the Board directly and get the answer in writing. For the nursing home, Delta must not leave the job unsupervised. The qualifier of record or another Board-approved qualifier must be responsible until a replacement is approved. If Delta cannot satisfy that requirement, it should stop work, notify the facility and the AHJ, and arrange for completion by a properly licensed contractor rather than allowing the project to proceed under an unapproved qualifier.
3. What are the practical and disciplinary risks if Delta proceeds as Ray proposes?
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The risks are both contractual and regulatory. The school district may reject the bid or terminate the contract once it verifies the Board record, and Delta could face a bid protest or false-certification claim. The Board can treat contracting without an approved qualifier as unlicensed or improperly licensed activity, which may lead to fines, suspension, or revocation and can affect the company's ability to obtain future licenses. Marcus could also be exposed personally if he signs as qualifier without Board approval. The nursing home presents life-safety risk because final acceptance testing would be signed off under a qualifier who is not actually responsible. Insurance carriers may also take the position that the work was outside the insured scope. The safe course is to stop bidding and contracting until the Board approves a qualifier.