REAL ESTATE
“Owner/Builder” Who Do You Hire?
by Zoran Windrich
Owner/builders take note! A word of caution
from the Contractors State License Board:
A
nyone who talks you into being your own general
contractor, or “owner/builder,” is not doing you a favor.
As an “owner/builder,” you assume responsibility for
the overall job. Your responsibilities may include state
and federal taxes, workers’ compensation insurance, and other
legal liabilities. You may be required to hire various subcontractors
for your project, scheduling their work and supervising the job.
If a worker is injured while working on your property, you could
be asked to pay for injuries and rehabilitation through your
homeowner’s insurance policy.
By signing a building permit application at the City Building
Department as an “owner/builder,” you assume full responsibility
for all phases of your project. Hiring an unlicensed “consultant” to
manage the project does not save you money in the long run. Hiring a licensed, experienced contractor for your project is your best
assurance to have the project done right. Unless you have extensive experience in construction, it is best to leave these matters to
your licensed contractor. The hired contractor is required to have
Workman Comp Insurance for his men in the event that anything
happens while working on your home, like falls or injuries. If your
hired contractor does not have the appropriate insurance, you
could be held responsible for all the men working at your property and any injuries that may occur. It is also important to have
General Liability Insurance in the event that accidental damages
are done to your home, or if work performed later fails or affects
the appearance, function, or operation of your home.
If you choose to do the construction yourself, it is highly
recommended that you have extensive understanding of the work
for which you are managing. Even if others are doing the work
for you, you need to be clear how each trade is to perform their
job. New work completed on your home should last for more
than a few months, it should last several seasons. Remember, if
done correctly you should not have to see evidence of the work
previously done. Take the time to interview several tradesmen
Sticking your head in the
sand does not make
building problems
go away…
licensed in the trade you need done and interview them. Ask them
specific questions about the work intended. Ask them to measure
the area so they can write the scope of their work and include the
total amount of square feet involved in the work they plan to do.
REMEMBER, have the area measured first and figure out the total
square foot area that you are talking about prior to interviewing.
Low bidder wins
It is illegal for an unlicensed person to perform contracting
work on any project valued at $500 or more in labor and
materials. Besides being illegal, unlicensed contractors lack
accountability and have a high rate of involvement in construction
scams. When you have issue with their work they can’t be found
and the phone calls are unanswered and the address you were
given is not vali