Engineering Companies and Licenses

[Enginator]

Here's an interesting ethics question.

In this example, we have companies A, B, and C.

A = Technical Services company, no license to practice engineering (the state requires it). This company used to have a license, but let it lapse.
B = Engineering company - has a license.
C = Big Client.

A has a contract with C to provide a stamped design.

A's license lapsed so set up a subcontract with B, to do the stamped design for C.

Can B get in ethical trouble for participating in this little mess A got itself into?

 

[JAE]

Not necessarily.

It depends upon the degree of control that the engineer for B has on the project. As long as the design is performed by B and under B's direct control, then the services may be OK from a PE standpoint.

Now many states also have laws on the corporations as well - such as requiring any corporation offering to practice engineering in their state to have a corporate license. Many times this corporate license can only be obtained and maintained if the corporation (A in this case) has PE's on staff.

 

[DonPhillips]

If A is providing a service, and in a design-build arrangment hires B, I do not see a violation unless A is selling its services to include design.

I see quite a number of mechanical and electrical contractors hired by owners to design (read secure a permit) and install a system and they sub out the design to a third party.

But if A is doing the design in house, selling that service, would not qualify for a COA, and used B to seal the design, then B is aiding and abetting A's violation of state law and the engineer who seals the drawing possibly may be plan stamping.

Don Phillips

http://worthingtonengineering.com

 

[stevenal]

"A has a contract with C to provide a stamped design"

So A is offering engineering services. I suspect that in most jurisdictions A would be in violation for offering engineering services without a company license.

A should consider contracting for the RFP. A assists C in developing the RFP, and selecting an engineering firm. A then contracts with B or whoever wins the RFP.

 

[MiketheEngineer]

Check w/ your state board??

 

[Enginator]

Stevenal makes and excellent point. When I typed that sentence "A has a contract with C to provide a stamped design" should have been an immediate tip off. The state board in this case (as indicated parenthetically in the OP) requires firms offering engineering services to have a designated engineer and a special license to practice. Company A cannot be law have a contract with C to provide a stamped design. As DonPhillips points out, if B participates, then B is aiding and abetting A's violation.

Excellent analysis, y'all.

 

[stevenal]

Correction:
Last sentence in my post above should be "C contracts with B..."