Engineering Companies and Licenses
Engineering Companies and Licenses
(OP)
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?
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?





RE: Engineering Companies and Licenses
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.
RE: Engineering Companies and Licenses
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
RE: Engineering Companies and Licenses
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.
RE: Engineering Companies and Licenses
RE: Engineering Companies and Licenses
Excellent analysis, y'all.
RE: Engineering Companies and Licenses
Last sentence in my post above should be "C contracts with B..."