Considering home improvements or remodeling this year? If so, then hire a licensed, experienced company for the project unless you are the skilled contractor. Construction has been one of the largest industries in California, according to the California State License Board, and it has many laws and regulations.
• When electing to do your own construction project, you are acting as the Owner/Builder. The definition is a person who 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.
Risks: Acting as the Owner/Builder, mistakes can be costly and take additional time to correct. Hired subcontractors and suppliers who are not paid on schedule may file mechanic’s liens against your property. If your hired workers are injured, or your subcontractors are not licensed or don’t carry liability insurance or worker’s compensation and are injured, you could be asked to pay for injuries and rehabilitation through your homeowner’s insurance policy or face lawsuits.
HRN recommends licensed contractors for your projects that know their trade and are skilled professionals. Eliminate the worries of being the Owner/Builder. A word of advice – 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.
Additional information: CSLB’s Statewide Investigative Fraud Team (SWIFT) receives complaints against unlicensed individuals actively working on a construction project where the cost for labor and materials is $500 or more. The best way to let CSLB know about unlicensed activity is by going to the CSLB website and downloading the form to report fraud. Complete the form, then fax or mail it to the Los Angeles county SWIFT office.
To find licensed, referenced, prescreened contractors contact Homeowners Referral Network, 661-296-4291. Submit your project online at www.HomeownersRN.com.