Financially Responsible Officers (FRO) F.S. 489

Typically, when a licensed contractor qualifies a construction business entity, they are responsible for both the construction operations and the financial aspects of the business. However, employing a Financially Responsible Officer (FRO) can separate these duties. This arrangement allows the qualifier to focus solely on construction activities, while the FRO handles the financial responsibilities of the company. If the qualifier is not an owner or shareholder but merely an employee or independent contractor focused on construction tasks, the construction company will appoint a separate FRO to manage financial obligations.

Florida Statute. 489.1195

A qualifying agent is a primary qualifying agent unless he or she is a secondary qualifying agent under this section.

A financially responsible officer shall be responsible for all financial aspects of the business organization and may not be designated as the primary qualifying agent. The designated financially responsible officer shall furnish evidence of the financial responsibility, credit, and business reputation of either himself or herself, or the business organization he or she desires to qualify, as determined appropriate by the board.

Where a business organization has a certified or registered financially responsible officer, the primary qualifying agent shall be responsible for all construction activities of the business organization, both in general and for each specific job.