I am in the process of getting a general contractor’s license, the key issue there is that it requires FOUR years of verifiable work experience from a construction company or another GC. In addition, there are slews of insurance/bond requirements for a licensee, its really costly if you do not practice on a day to day basis. And rightly so that a GC should charge what they charge in a project.
http://www.contractorsischool.com/contractors-license/general-building-contractors-license.php
Why not get licensed? Your owner-builder experience would likely fulfill the “experience” portion of the requirements:
(I’m saying for future projects, not this one.)
Cross-posted with Post 40.
I called and got the details for a GC license. Total experiences required is 4 years, however if you have a college degree with construction you can substitute three of the four years of experience, if you have a business degree(master included), two years, if you have any other kind of degree, 6 months.
The “experience” portion of the requirements, if you are self employed, you need to hire licensed contractors and they are going to check out or even interview those “workers” you hired. In that, you need to show proofs of hiring. Any kind of renovation can be accounted for self employment.
Once you passed the test, there is a $15,000 performance bond and Worker’s comp and other insurance requirements, in addition, you have to hire licensed worker.
Wow, this really sounds like a potentially lose-lose proposition. Please have a heart to heart with the parents. I can’t see any good from doing this remodel, honestly! I sure wish your crew could come to Hawaii and help us out here!
I am just going to state the obvious… have absolutely no desire to get a contractor’s license. Even though I end up being the master of all the structural engineering and building plan details… I want to focus on the design aspect. I do not want to go anywhere near having liability for the construction, which would happen if I was licensed and bonded.
I am just a homeowner doing renovations and I’m sticking to that. I rarely do remodels and it has to be a very clear situation. This case is a very clear situation… I have made it clear, in writing, that I am just providing design assistance and they are responsible for all the construction. The Work Agreement that we have was reviewed by a lawyer several years ago when I got talked into my first project.
If I was a General Contractor, with a license, I don’t believe there is any requirement about having to hire ‘licensed’ workers? How do I hire licensed laborers who are digging trenches? I don’t know any General Contractors that have licensed workers.
I think if they are not licensed, the subs are considered employees of the GC, even if they would otherwise meet the test for independent contractors (and I believe this applies regardless whether the GC is licensed or not).
http://www.edd.ca.gov/pdf_pub_ctr/de231g.pdf
But anyway, good luck on however you decide to proceed.
Back to this flip…
So looking forward to the details…and hoping all the dates are quicker than scheduled!!
To all you who keep wondering why cb is taking on this project: She stated it clearly. It’s so she can keep her workers busy and earning money while she looks for her next flip, so they don’t wander away and start to work for someone else.
I totally get that. It’s important. Otherwise she’ll have no crew at all when she’s ready to get going on her next project.
I understand fully of CB’s intention. But what have you been doing in the X years before in all your flipping projects? I don’t remember you have to “keep your workers working” in the prior projects.
When I say gc has to hire licensed employee, I mean tradesmen not some one who dig the ditch. That included plumber, electrician, hvac etc.
In the years prior to this last flip, the RE market and hence the flip market was not as hot as it is today. If the guys are not engaged on a CB’s project, they could be lost to her competition.
Construction is on fire right now. I am constantly fighting off friends and other contractors who want to borrow my crew for a couple of days. They would have no problem getting sucked up on other projects.
In prior years my carpenter would go off on long visits to his family or camping between projects. I started doing small projects between flips to keep everyone busy. They don’t like the side jobs but I haven’t come up with a better solution yet.
I can’t imagine how you would function without him he is such a gem. Or someone like him, but how to find that person would be the huge question!
“I am just a homeowner doing renovations and I’m sticking to that.”
so I STRONGLY advise you to forgo projects where you are NOT the homeowner!!
You could get yourself in a heap of trouble on ANY project where you are NOT the homeowner - if ANY of your workers gets injured or is the cause of injury to others- including the owners of flip #6.
Just tell them that you have been advised that you can not longer do work for others without a contractors license, whcih you aren’t going to get.
end of story- regardless of what you had promised.
times have changed and the law is the law here in Calif
http://www.cslb.ca.gov/Consumers/Know_Risks_Of_Owner_-_Builder/
http://www.cslb.ca.gov/Contractors/Journeymen/Journeymen_Unlicensed_Consequences.aspx
"They don’t like the side jobs but I haven’t come up with a better solution yet. "
long term, the best solution is for you to get your general contractors license.
Your “eye”, vision, growing knowledge of the building business, ability to get the best out of your workers, respect that the city building inspectors have for you- all point to getting your GC license as the logical next step.
yes it will be a PITB, but it will allow you to tackle ANY project that you want to tackle- without being beholden to your investors making you be the “homeowner” of record.
I am with menloparkmom
As stated before, my suggestion is still : provide FREE advise and have them sign up with the home owners. The amount of money you received is not worth the risk. I HAD some one got injured on the job, falling off the ladder, fortunately it was just a bruised leg and he recovered. Nevermind that sleazy electrician who faked an injury and want to sue me for $8000( that won’t happen in your case).
I have taken all of your concerns to heart regarding my next project. We have drafted an agreement where I am just providing assistance with sourcing materials.
Today I went shopping with the homeowner to source the kitchen appliances. I want her to make some decisions on appliances before we do any final kitchen design.
We scored some screaming deals in the Return/Discontinued section of Pacific Sales and some steep ‘contractor’ discounts on a package of new appliances. In the end we had a total package of Frigidaire Gallery new appliances (refrigerator, microwave, dishwasher, range) with a standard gas range, for $2,600. OR piecing together some great pieces of 30" gas cooktop, 27" double electric oven, dishwasher, refrigerator and microwave for $3,300.
I left the decision up to her whether she wanted a single range or cooktop/double ovens for an extra $700. She actually wanted a flat ceramic electric stove for easier cleanup but I counseled her that it will kill her resale potential because the majority of buyers want gas stoves.
I wasn’t happy with the dishwasher choice because it was a plastic interior with 52 decibel sound rating. We went down the street to Sears Outlet and found a great stainless interior dishwasher, same handle style as the double oven, at 48 decibels for $50 less!!! We checked it thoroughly for scratches and dents and it was a screaming deal at $350.
I told her to think on it and she went back to Pacific Sales and got the gas cooktop ($350) and double ovens ($1100) comnbination. I was proud of her for making the fast decisions and getting everything picked out in one day!! She’s young and doesn’t agonize over brands or functionality too much. She is focused on price. Five separate pieces, including all sales tax for about $3,500. That is $500 less than we budgeted so that gives her some breathing room with contingencies moving forward.
This young couple is so lucky to have your advice and expertise!
Today the guys start demolition of the young couple’s house. I will take a lot of pictures of the before. Does anyone have interest in seeing the before pictures? I will not reveal the address, just a general location
Yes! I’d love to see before pictures and a drawing of the floor plan too!