photo by Joshua Hoffman
Most building departments give you the option of being an owner/builder. Instead of putting a general contractor on your building permit you put yourself down as the builder. This is a great way to save money. And to potentially get into hot water.
Permit Responsibilities
As an owner/builder you need to apply for all necessary permits. These usually include building, electrical, plumbing, and mechanical permits. You will also need to know when to call for which inspection and be on the construction site waiting for the inspector.
Supplier Responsibilities
Every kind of material and equipment that goes into your home construction project will need to be ordered by you. And ordered early enough not to clog up the schedule. You will have to be sure to pay your suppliers in a timely manner on the terms they are expecting.
Employee Responsibilities
You could try having yourself and your family build the whole project. Or hire licensed subcontractors for the specialties, such as electrical, plumbing, and so on. Be aware though—if you hire anyone other than a licensed subcontractor you become an employer.
California law states that an employer must do tax withholding and social security, have workers’ compensation insurance, unemployment contributions, and more. If you don’t do everything by the book you are making yourself vulnerable.
General Contractors
General contractors are licensed by the State of California, and they have certain responsibilities. There are many advantages to hiring one to build your home project. The obvious advantage is they have loads of experience and know how to get things done.
The other big reason to put a general contractor on your building permit is so they have all the responsibilities described above. For most people I’d recommend paying the extra money for the peace of mind you get knowing someone else, whose profession it is, takes on all that responsibility.
Do you know anyone who did their project as an owner/builder? How did it turn out?