Can I be my own General Contractor or Owner/Builder?

“Owner/builder” describes a situation in which the homeowner becomes the general contractor. As an owner/builder, you (not the person you hire) assume responsibility for the overall job. Your responsibilities may include such things as state and federal taxes, workers’ compensation insurance and other legal liabilities. 

What is an Owner-Builder?

An owner-builder is what the term indicates: a 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.

Owner-Builder Responsibilities

When you sign a building permit application as an owner-builder, you assume full responsibility for all phases of your project and its integrity. You must pull all building permits. Your project must pass codes and building inspections. The owner-/builder is responsible for ordering materials and making sure all suppliers are paid. An owner-builder also is responsible for supervising, scheduling, and paying subcontractors. If you use anyone other than your immediate family or a licensed subcontractor for work, you may be considered an “employer.” Employers must register with the state and federal governments and are obligated to participate in state and federal income tax withholding, federal Social Security taxes, workers' compensation insurance, disability insurance costs, and unemployment compensation contributions.

Tip: For more specific information about your obligations under federal law, contact the Internal Revenue Service at (800) 829-1040, and the U.S. Small Business Administration at (800) 359-1833. For more specific information about your obligations under state law, contact the Employment Development Department at (916) 653-0707, the Department of Industrial Relations at (415) 703-5070, and the Franchise Tax Board at (800) 852-5711.

Owner-Builder Risks

Unless you are knowledgeable about construction, mistakes can be costly and take additional time to repair or correct. Subcontractors and suppliers who are not paid on schedule may file mechanics liens against your property. Educate yourself about mechanics liens and how to prevent them. If your workers are injured, or your subcontractors are not licensed or do not carry liability insurance or workers' compensation insurance 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 undergo an FBI background check before they are licensed to work in California. Illegal contractors can botch a job or leave with the down payment, leaving the owner-builder to deal with the consequences.

Show All Answers

1. When is the new 2022 California Building Standards Code effective?
2. Construction Rules, Hours, and Holidays
3. Violations and Penalties
4. If my project was permitted under the 2019 California Building Standards Code and I need to revise my approved plans, which edition of the codes will be applicable?
5. My Permit has expired. What's next?
6. Who do I call if my building is in the unincorporated area, not the Rancho Palos Verdes?
7. Legalize Unpermitted Work
8. When Do I Need a Demolition Permit?
9. Where can I find the original plans for my house?
10. What is the California Building Standards Code?
11. Why do I need a building permit?
12. Can I apply for a permit online?
13. When are permits needed?
14. Can plan check be done over the counter?
15. What type of building inspections are required?
16. Do I need Sanitation District or septic tank approval for my plans?
17. How can I check my permit Inspection results?
18. Emergency repairs without a permit?
19. How do I contact a Building Inspector?
20. Work exempt from permit's?
21. How do I schedule inspections?
22. Do you have plans of my home?
23. Does my contractor need a license?
24. Do all building permits need inspections?
25. Can I view the permit history of a property online?
26. What If I begin work without a permit?
27. Who owns a permit?
28. EV Chargers FAQ
29. Do all permits need a "Final" inspection?
30. Who do I contact about plan check review comments?
31. How long does a plan check take?
32. What do you do if you need to Abandon a Septic Tank?
33. Does my retaining wall need a permit?
34. Do you have Geology/ Tract Files? Can they be emailed?
35. How much will my building permit cost?
36. Do field changes (modifications to approved plans) need to be approved?
37. Do I need to hire someone to draw my plans for me?
38. Can I live in my garage?
39. Can I perform work as owner/builder on my commercial property?
40. How do I check on the plan review status of my permit?
41. Can I do the work myself or do I have to hire a contractor?
42. Can I be my own General Contractor or Owner/Builder?
43. Why are all contractors (the electrician, the plumber, the general contractor, etc.) required to be licensed in the City?
44. What is the maximum window U-factor and SHGC (solar heat gain coefficient)?
45. Do I need a permit to replace my driveway or sidewalk or to add Hardscaping?
46. What are setbacks for a property?
47. Why am I being subjected to enforcement when my neighbors are doing the same thing?
48. How do I make a Code Enforcement complaint?
49. How can i find out where my property line is located?
50. How do I legalize an addition or dwelling unit built without permits?
51. How do I get a permit to have a dumpster on the street for my construction debris?
52. How Long are Plan Checks and Permits Valid?
53. How do I expedite a plan check?
54. When may I start building?
55. How can I get a Certificate of Occupancy (C of O)?
56. Do I need a permit for a storage shed, playhouse, etc.?