By Steven L Simas
If your company offers engineering services in California, here’s the short version: somebody with a California engineering license has to be in charge. California doesn’t register or license engineering firms the way many states do. Instead, the Board for Professional Engineers, Land Surveyors, and Geologists (BPELSG) looks at who is running the engineering inside your business.
That surprises a lot of companies, especially national firms, joint ventures, and environmental or planning consultants that have grown into design work. The good news is that the rule is simple once you know it, and fixing a gap is usually a matter of structure and paperwork, not starting over.
The Rule in Plain English
Under Business and Professions Code section 6738, a business may practice or offer to practice engineering in California if two things are true:
- A licensee is in charge. A professional engineer currently licensed in California is an owner, a partner, or an officer in charge of the business’s engineering practice.
- The work is done right. All engineering services are performed by, or under the responsible charge of, a California engineer licensed in the right branch (civil, electrical, mechanical, and so on).
“Offer to practice” matters here. Signing a contract or task order that calls for engineering counts, even if the actual design work is done by employees or subconsultants. And “engineering” is broader than many people expect: investigation, evaluation, advice, and consultation about fixed works like levees, weirs, foundations, and structures can all qualify, not just stamped drawings.
A Title Isn’t Enough
It’s tempting to solve this by adding a licensed engineer to the board of directors or handing someone a business card that says “Engineering Principal.” Be careful. The statute speaks of an owner, partner, or officer in charge of the engineering practice, and the Board looks at substance, not labels.
A few practical points:
- Directors aren’t the same as officers. A board seat alone doesn’t put someone in charge of day-to-day engineering. The licensee should hold an officer role with real authority over the engineering work.
- The authority has to be real. The licensee should control staffing, quality, and final engineering decisions. An arrangement that simply lends a license to a company without control is the kind of thing that draws Board scrutiny.
- Responsible charge still applies to every project. Even with the right person at the top, each engineering task needs a California licensee exercising independent control and direction over it.
How It Plays Out for Different Business Structures
- Corporations. The most common setup is a licensed engineer serving as an officer, such as a vice president or principal in charge of engineering, with authority written into the company’s governing documents.
- Partnerships and joint ventures. A licensed engineer can be a partner. If the partners are themselves companies, as in many joint ventures, the partnership can create an officer position for a licensee through its partnership agreement. Admitting the licensee as a partner is the more conservative option.
- LLCs. Limited liability companies face an extra hurdle, because California generally bars LLCs from providing services that require a professional license. If your engineering business is an LLC, talk to counsel before you take on engineering work.
One more thing: if your work also includes land surveying, California has a parallel rule for surveying businesses, and some geotechnical work may involve the separate geology license.
A Quick Self-Check
Ask yourself:
- Does our company sign contracts that include engineering work in California?
- Is a California-licensed engineer in the right branch an owner, partner, or officer in charge of our engineering practice?
- Is that person’s authority written down, and do they actually exercise it?
- Is every engineering task assigned to a California licensee in responsible charge?
- Do our proposals and public contract qualifications match how we’re actually set up?
If you hesitated on any of these, it’s worth a closer look, especially before you sign your next public contract. Agencies may contract for engineering only with firms permitted by law to practice it.
We’re Here to Help
Getting this right protects your contracts, your fees, and your reputation. Simas & Associates helps engineering firms, joint ventures, and consulting companies review their structure, document the right licensee roles, and respond to Board inquiries. If you have questions about how California’s rules apply to your business, give us a call at (805) 547-9300 or email info@simasgovlaw.com.
This post is general information, not legal advice. Every business is different, so please talk with counsel about your specific situation.