Owner-Builder Permits
An owner-builder permit is a type of building permit that allows a homeowner to act as the general contractor for their construction project. This means they are responsible for obtaining permits, ensuring compliance with building codes, scheduling inspections, and overseeing the work of subcontractors.
Owner-builder permits are typically available for single-family homes and some smaller-scale projects. They can be a way for homeowners to save money on construction costs, but they also come with additional responsibilities and risks.
In Florida, the specific requirements for owner-builder permits can vary depending on the local jurisdiction. However, some common requirements include:
- Proof of ownership: The homeowner must demonstrate that they own the property where the construction will take place.
- Knowledge of building codes: The homeowner must demonstrate a basic understanding of building codes and construction practices. Some jurisdictions may require the homeowner to complete a course or pass an exam.
- Financial responsibility: The homeowner must be able to demonstrate that they have the financial resources to complete the project. This may include providing proof of funds or obtaining a construction loan.
- Insurance: The homeowner must obtain the necessary insurance coverage, including liability insurance and workers’ compensation insurance if they are hiring workers.
It’s important to note that there are some restrictions on owner-builder permits. For example, the homeowner may not be able to sell the property for a certain period after completion of the project. Additionally, if the homeowner hires subcontractors, they are still responsible for ensuring that the work is done correctly and meets code requirements.
If you are considering obtaining an owner-builder permit, it’s important to research the specific requirements in your area and to understand the risks and responsibilities involved. You may also want to consult with an attorney or other professional to ensure that you are fully informed before proceeding.
Why Would a Contractor Suggest I Obtain an Owner-Builder Permit?
The most common reason is so that the contractor can avoid liability for injury, unpaid subcontractors and suppliers, or compliance with safety requirements and building codes. A contractor may also suggest you obtain an owner-builder permit if the contractor owes suppliers or others money and does not want their name listed on a permit, they cannot purchase materials to complete the work, or if they do not have the required license or have one that is suspended or revoked.
If a contractor suggests that it will be better if you, the homeowner, obtain the permit, here are a few things you should know:
An owner-builder permit is one that specifies the property owner (not the contractor) is responsible for all aspects of the construction work as spelled out in the permit application.
You will be required, by law, to act as the contractor and provide direct, onsite supervision for all work performed by persons who are not licensed contractors.
By signing the permit application, you take full responsibility for compliance with all laws, including:
Employment Expenses: Withholding of federal payroll tax, payment of Social Security and Medicare taxes, payment of unemployment compensation tax, and providing workers’ compensation insurance coverage of any person not licensed.
Liability: You are liable for injury to persons or damage to property associated with the project.
Payment: You must ensure that all persons or companies providing goods or services are paid.
Compliance: You must maintain compliance with all laws and regulations for building codes, federal and state environmental, safety, and other requirements.
An owner-builder permit is not allowed for property that is sold or leased within one year. It is also not allowed for commercial work valued at more than $75,000.
You can check to see if your contractor is licensed and in good standing by visiting www.myfloridalicense.com and selecting “verify a license.” You can check to see if there are outstanding judgments against the contractor suggesting an owner-builder permit by performing a search of court records in your area. You can check to see if the work needed requires a building permit by contacting your local city or county building department. They can usually answer the question quickly over the telephone. To read Florida law on owner-builder permits, see section 489.103(7), Florida Statutes.
For more information on owner-builder permits, please contact CFRSA.