| 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.
As an owner-builder,
you will be responsible for all of the following:
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You will
either have to pull all of the permits or have each sub pull
their own. |
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There is
a lot of 'grey areas' between the trades, you will have to
pay for those. |
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There is
always mystery damages done on projects, you will have to
pay for them. |
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You will
have to deal with the inspectors 'face to face' for
inspections. |
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You
should be able to fully understand construction terminology. |
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All plan
revisions that are ordered by the city building inspector
will be on you. |
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You will
have to find good honest subs for all trades and keep them
on a schedule. |
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You will
have to find a deputy inspector for your concrete pour and
epoxy hold-downs. |
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You will
have to negotiate up to 10-20 contracts instead of just one. |
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You will
have to pay for extras that come up, and there will be a lot
of them. |
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You will
need to find a way to keep the job clean and safe, up to
OSHA standards. |
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You
better have a $1,000,000.00 insurance policy, because most
contractors DON'T |
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You are
legally responsible for all taxes & workers comp insurance
for workers you hire. |
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You are
responsible for yard run-off, $75,000.00 fine by the State
of California! |
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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.
Good luck with your project, and don't hesitate contacting me
for a short free consultation over the phone. Keith (714)
231-9773 |