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Owner-Builder Permits
Here is an example Owner-Builder Permit application and Owner-Bulder verification, which show typical legal disclosures and warnings that must be acknowledged before Permits are granted to owner builders.
[ ] I understand a frequent practice of unlicensed persons is to have the property owner obtain an “Owner-Builder” building permit that erroneously implies no liability or serious financial risk exists for injuries sustained by an unlicensed person, their employees working on my property, or voiding my homeowner’s insurance due to their illegal activity. I willfully act as Owner-Builder, aware of insurance limits for worker injuries on my property.
If a write-in explaination is requested, options include:
1) I acknowlege liability
Explaination: Under CA Ins.Code 108.1, Homeowner Workers' Comp. Insurance riders only cover statutory employees of the homeowner, (ie) not laborers doing minor repairs < $500 in 52hrs, or new construction before a certificate of occupancy, etc..
2) HomeOwner policy includes comprehensive liability
Explaination: CA Ins.Code 11590 requires "comprehensive personal liability" --sold with some homeowner policies-- to cover injury during the first 52hrs of work, of any
person defined as an employee by Cal.Lab.Code §3351(d).
3) Hiring fully insured contractor
Explaination: Homeowner may bear burden of proof to verify contractor insurance(s) before injury occurs. Courts may rule owners are responsible, in favor of injured employees, where contractor insurances have lapsed.
[ ] I certify that, in the performance of the work for which a permit is issued, I shall not employ any person in any manner so as to become subject to the workers’ compensation laws of California, and agree that, if I should become subject to the workers’ compensation provisions of Section 3700 of the Labor Code, I shall forthwith comply with those provisions.
If a write-in explaination is requested, options include:
1) Project <52hrs. CLC 3352(h) exempt
Explaination: Cal.Lab.Code §3351(d) & §3352(h) exempts workers hired by residential owners for 52 hours of work in any 90-day period. After 52hrs Workers' Compensation insurance is compelled, and no other insurance will pay for worker injury claims.
2) HomeOwner policy includes Workers-Comp. rider
Explaination: Homeowner policies can include Workers' Compensation Insurance "riders" to cover construction workers after 52 hours, if all workers total hours remain <40 hrs. per week.
3) Using payroll services with Workers Comp. reporting
* Explaination: Owner Builder's can use payroll services with their own workers comp. insurance during construction.
[ ] I understand if I employ or otherwise engage any persons, other than California licensed Contractors, and the total value of my construction is at least five hundred dollars ($500), including labor and materials, I may be considered an “employer;” subject to withholding payroll taxes, provide workers’ compensation insurance, and contribute to unemployment compensation for each “employee.”
If a write-in explaination is requested, options include:
1) Project under $500. CA B&P 7048 exempt
Explaination: CA Business & Professions Code (B&P) 7048 exempts projects under $500 from CA contractor licensing requirements, however, uninsured-worker injury claims & torts remain a seperate issue.
2) Remodel property not intended for sale. B&P 7044 exempt
*
Explaination: CA B&P 7044 exempts projects over $500 --from contractor licensing requirements-- when wage reporting, or payroll services, automatically deduct State taxes & insurances for any employee.
* Payroll services are unusual for owner-builder projects, and complicated for owners without an existing business entity. As of this writing Intuit Full Service Payroll was ($99Mo +$2) per employee, with a seperate Worker's Comp reporting feature.
Search codes in Jude Obrien's annotated case precedents, (CA Workers Comp. database); (ie) 7048, 7044, 11590, or 3352. Obrien's annotations follow the insurance industry's history of denying claims, and onging case precidents that try to settle liability.
Permit-Transfer Procedures
When city-plan check demands a State-licensed specialist, with full lien and binding contracts, Owner-builder permits may not be allowed. Consumers are then advised to begin the process of weeding out credit risks, corporate name changes, fraudulent license numbers or bonding, enforce down-payment limits, escrow accounts, and lien releases after each phase of the project. See Rebuilding After a Natural Disaster Video produced for the Contractors State License Board (CSLB)
Owners may wish to remove a contractor after discovering: 1) a registered sex offender in your home, 2) fake credentials or bonds, 3) credit risk or bankruptcy, 4) overbilling, 5) illegal labor, 6) going AWAL with your money & material, 7) or otherwise burning down the building.
Finishing a project with alternate bidders requires a proper exorcism of the previous State-licensed contractor, their building Permit, and proving their contract breach.
Below is a list of cities where I provice service:
Fullerton, Anaheim, Beuna Park, Placentia, Cerritos, Diamond Bar, Yorba Linda, Brea, La Habra, La Mirada, Cypress, Whittier, Garden Grove, Orange, Norwalk, Corona, Ontario, Chino, Downey, Westminister, Tustin, Santa Ana, Costa Mesa, Irvine, beach cities
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