South Orange County
Owner-Builder
How to be an Owner Builder
What are the risks of being an Owner/Builder

  

Owner-Builder Remodeling How to pull permits as Owner-Builder in South Orange County? Should I remodel my home as Owner-Builder?

Are you considering doing a home remodeling project or room addition and acting Owner/Builder for the project? This is legal and 100% doable, but there are some things that you should know before attempting this. What is an owner/builder? This section defines what an owner builder is and the laws surrounding the practice. An owner/builder is what the term indicates. The person owns the property and acts as their own general contractor on the job and either does the work themselves or has employees (or subcontractors) working on the project.   The work site must be their principal place of residence that they have occupied for 12 months prior to completion of the work.   The homeowner cannot construct and then sell more than two structures during any three-year period.   As an owner-builder, you will be responsible for all of the following: You will either have to pull all of the permits or have each sub pull their own. There is a lot of 'grey areas' between the trades, you will have to pay for those. There is always mystery damages done on projects, you will have to pay for them. You will have to deal with the inspectors 'face to face' for inspections. You should be able to fully understand construction terminology. All plan revisions that are ordered by the city building inspector will be on you. You will have to find good honest subs for all trades and keep them on a schedule. You will have to find a deputy inspector for your concrete pour and epoxy hold-downs. You will have to negotiate up to 10-20 contracts instead of just one. You will have to pay for extras that come up, and there will be a lot of them. You will need to find a way to keep the job clean and safe, up to OSHA standards. You better have a $1,000,000.00 insurance policy, because most contractors DON'T You are legally responsible for all taxes & workers comp insurance for workers you hire. You are responsible for yard run-off, $75,000.00 fine by the State of California! If you get caught by the CSLB for hiring any unlicensed contractors, you can go to jail and receive a nice fine. They do stop by jobs and check pocket cards! The nature of the above information is not to scare you, but to inform you that acting as a General Contractor is not just having people do all the work for you. There is a huge amount of liability involved not to mention dealing with all of the different attitudes of all the subs and workers that you hire. You should also take into consideration that you will need to be able to understand when to order materials and when to have them delivered. You need to understand the inspection process and know what a critical path is for your project. I guarantee you that when the times comes to start getting the subs in, 'THEY WILL ALL TELL YOU' that they should go before the other guy... because they just want to get in, get out and get paid! Putting the wrong sub before the other will cost you tearing out work and redoing it... I GUARANTEE THIS! Here are some questions you might have: -- How do I act as Owner Builder? -- What is an Owner Builder? -- What should I do first as an Owner Builder? -- What kind of subs will I need for my project? -- Should I sign all of the contracts before I start, or when I need them? -- What do I do when a Contractor tells me 'that was not included in the price'? -- What do I do when the inspector writes a correction notice and the subcontractor says that's not part of his job? -- What do I do if there is an injury on the job? -- Does an Owner Builder need to have insurance for the job? -- Who pays for materials that are stolen from the job? Did you know that 'ONE BAD SUBCONTRACTOR' can shut down your entire job, cost you fines with the city and cost you tons of money. GOOD NEWS::::: If you can handle all of the above situations, you are ready to become your own Owner Builder and if it is done right, you can save about 20% or more on your project. I strongly suggest that you do some research on the internet first, have an attorney review your contracts, do a full background check on all contractors you are going to hire and fully understand the dynamics of job site problems & possible solutions. BEST ADVISE::::: Take your project in baby steps. Don't sign all contracts right out of the gate. Sign as you go. Once the contract is signed, you are legally responsible to pay that contractor the FULL AMOUNT, whether you do the work or not. You can be sued if you don't follow through with him. The downside of being an owner/builder This section presents some additional issues that should be taken into consideration before deciding to become an owner/builder.   Unless you are knowledgeable about construction, mistakes can be costly and take additional time to repair or do it right. Subcontractors and suppliers who are not paid on schedule may file mechanic’s liens against your property. Educate yourself about mechanic’s liens and how to prevent them. If your workers are injured, or your subcontractors are not licensed or do not carry liability insurance or worker’s compensation and they are injured, you could be asked to pay for injuries and rehabilitation through your homeowner’s insurance policy or face lawsuits. You should be cautious of unlicensed individuals claiming to be contractors who prey upon homeowners. They may promise to guide you through the owner/builder process for a consulting fee, but they are breaking the law.   REMEMBER As an owner/builder, you assume full responsibility for all phases of your project and its integrity. Licensed contractors must demonstrate knowledge of their craft, be tested, fingerprinted, bonded and FBI background checked before they are licensed to work in California. Illegal contractors can bungle a job or skip with the down payments leaving the owner/builder pretty much on their own to deal with the issue.   Good luck with your project, and don't hesitate contacting us for a short free consultation over the phone.

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