Branching out Eyeing opportunities in new states? Timing is key. By Christian Haring
and licensing process. The following summarizes the key aspects to consider when evaluating the regulatory hurdles in a new jurisdiction and the time required to clear them. Non-COA states The simplest scenario is states that don’t require certificates of authori- zation (COAs), covered in detail in a previous article on firm licensing (Don’t ignore firm licensing, Civil + Structural Engineer, April 2018, page 16, https://csengineermag.com/article/dont-ignore-firm-licensing). Where COAs aren’t required, firms may be able to meet their require- ments by having engineers who are licensed within the state and avail- able to complete the work. This requires having sufficient licensed staff to deploy to the new location, at a minimum, and potentially more substantial investments such as establishing branch offices. Foreign qualification Most states require a COA application, which also generally requires foreign qualification with the secretary of state. When handled effi- ciently, this can be a reasonably quick process in many states. But miss a step or make an error in your paperwork, and the timeline can very quickly stretch into twice as long or longer. For example, foreign qualification generally takes from one to six weeks when applications are correct as submitted. Unfortunately, in
Selecting the right mix of opportunities to pursue is key to sustain- able, profitable growth, but getting there can be a costly endeavor for engineering firms of all sizes. The average firm pours a lot of staff hours into vetting and preparing proposals and wins only 30 to 40 percent of the opportunities. When evaluating requests for proposals and qualifications in new jurisdictions, additional variables come into play. What regulatory obstacles must be overcome before the firm can submit a response? How long will the process take? By understanding the licensing process and knowing what to look for in a new state, firms can build realistic timelines into the go/no-go process and widen their business development horizons. When it comes to regulatory requirements, all states are not created equal. In some states, a firm may merely need to have the right licensed staff available to begin offering services; in others, they may be look- ing at forming a new entity and navigating a four-month registration
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csengineermag.com
august 2018
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