Owner-Builder Permits

The State of California allows homeowners to act as their own general contractor for projects on their principal residence (home), when they either do the work themselves or have employees (subcontractors) working on the project. State laws about owner-builder can be found in Business & Professions Code section 7044. 

An Owner-Builder must sign a required notice acknowledging their financial risk and their full responsibility for the project.

YOU NEED TO KNOW:

• Owner-Builders are responsible for designing and constructing their project to meet all applicable codes and regulations, including building inspections.
• Owner-Builders must order their own materials and are responsible for managing, scheduling and paying subcontractors.  In certain instances, Owner-Builders may be considered employers and must fulfill all federal and state obligations for taxes, insurance and unemployment contributions. 
• Construction novices can run into challenges with construction management and code compliance that result in additional cost and time to correct. 

"Owner-builder" projects can be a good choice for homeowners who know how to navigate the permitting process, develop and manage their project budget and schedule, and have the technical know-how to manage their project and ensure that it meets code requirements. 

There’s a reason why the trades have licensing requirements. If an individual (such as a consultant or unlicensed contractor) encourages you to apply for a permit as Owner-Builder, be sure to ask questions. In some cases, unlicensed individuals will use the Owner-Builder option to avoid the cost and effort of contractor licensing. Not only are these individuals breaking the law, they may lack proper insurance, background checks or other safeguards. This can leave you, the homeowner, holding the bag for incomplete or unworkmanlike construction, unexpected liabilities, and other headaches.

Learn more that the State Contractor's Licensing Board website: Owner-Builder Overview