Individual and firm licenses elevate the engineering profession, uphold standards, and protect the public. By embracing the strategic value of licensing and implementing a sound management plan, firms can turn an unpredictable source of aggravation and expense into a solid investment that pays dividends long into the future. JERRI-LYNN WIER is an attorney and compliance specialist for Harbor Compli- ance (www.harborcompliance.com/compliance-solutions-engineering-firms), a provider of license and entity management solutions for businesses. She has 20 years of experience in insurance, business, and election compliance, and has licensed numerous large engineering and architectural firms. Con- tact her at 888-995-5895 or info@harborcompliance.com. Detailed specific state-level licensing information is available on the company’s engineering guides at www.harborcompliance.com/information/engineering-license.
as one board member and the president must be a licensed engineer. In some cases, the requirements include engineers licensed in any state; others can be satisfied only by in-state licensees. For example, in New York, all partners must be licensed in New York State. Because of these requirements, firms frequently find that they must ad- just their ownership or management structure or even form a new entity when entering a new state, as many engineering firms are not owned solely by licensed professionals. Name requirements In some states, referring to a licensed profession in the firm’s name car- ries specific requirements. As previously noted, Pennsylvania firms must register if their names include some form of “engineer;” in New York, you may be required to file a fictitious name if your name omits such a reference. In some states, the name requirements depend on the number of licensed engineers in your firm. Requirements also center on names of individual practitioners. In North Carolina, for example, individuals whose names are included in the firm name must be licensed within North Carolina. Once again, it pays to review SOS and state board requirements in detail before beginning any filings in a new state. Application fees and processing times Firm license fees range from $0 in Georgia and California to $600 in Alaska. The most common filing fee is $100; the average is $135. Like individual engineering licenses, most firm licenses are approved at monthly or quarterly board meetings, so timing depends on the board’s meeting schedule. Turnaround typically ranges from four to eight weeks, but it can take much longer. In NewYork, for example, approval usually takes from three to five months. Updates If a firm changes its name or address, it must notify the engineering board and fill out a new certificate of authorization or change form, de- pending on the state. Many firms don’t realize that before doing so, they must change their name with the SOS. Interestingly, in some states this requires prior approval of the engineering board! In addition, most licenses must be renewed every one to two years. If your firm has been disciplined by any state licensing board, this must usually be disclosed in initial applications and renewals. Competitive abilities Because it takes time to prepare a filing, and approvals depend on board meeting schedules, it’s critical to plan ahead for licensing when con- sidering growth opportunities and to make sure your applications are accurate the first time. One missing item can mean a rejection, which means waiting again for the next board meeting. It is frustrating for a firm’s sales team to identify a major opportunity in a new state only to miss the bidding window because of a delayed or rejected license ap- plication. Sometimes firms will take the risk and bid anyway. This can have disastrous consequences because penalties for missing or lapsed licenses are substantial.
Tips for successful license management To maintain licenses across your enterprise and keep pace with growth opportunities, firms should take the following steps: 1. Use appropriate software to track all individual and firm licenses and renewal dates throughout your entire operation. 2. Set up automated reminders of renewal dates and other important deadlines. 3. Include licensing as an early step in your sales and growth plans. 4. Examine secretary of state and licensing board requirements side-by-side before beginning any applications. 5. Pay special attention to requirements concerning firm name, structure, branch locations, ownership, management, and individual engineer licenses. 6. Create a system to notify the license board immediately whenever key licensed individuals leave the firm or change addresses, possibly directly through payroll. 7. Include a means to notify the board if your firm changes its name or address or opens new branch offices.
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january 2018
csengineermag.com
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