Business Litigation
BlogQualifying Parties May Now Have to Face Personal Liability for Construction Company’s ObligationsFebruary 11, 2021
Last year’s changes to the contractor’s licensing laws opened the door to personal liability for qualifying parties (“QP”). The Legislature added Section B to A.R.S. § 32-1127. Section B reads: “While engaged as a qualifying party for a licensee, the qualifying party is responsible for any violation of this chapter by the licensee.”
What are “any violations of this chapter”? A few examples are:
- Liability to pay subcontractors and material suppliers;
- Lability for conversion of payments received for work performed;
- Liability for payments