• Consumers
• Owner/Builder Risks
• Downside of Being an Owner/Builder

The downside of being an owner/builder

This section presents some additional issues that should be taken into consideration before deciding to become an owner/builder.

Unless you are knowledgeable about construction, mistakes can be costly and take additional time to repair or do it right.

Subcontractors and suppliers who are not paid on schedule may file mechanic’s liens against your property. Educate yourself about mechanic’s liens and how to prevent them.

If your workers are injured, or your subcontractors are not licensed or do not carry liability insurance or worker’s compensation and they are injured, you could be asked to pay for injuries and rehabilitation through your homeowner’s insurance policy or face lawsuits.

You should 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.

REMEMBER

As an owner/builder, you assume full responsibility for all phases of your project and its integrity.

Licensed contractors must demonstrate knowledge of their craft, be tested, fingerprinted, bonded and FBI background checked before they are licensed to work in California.

Illegal contractors can bungle a job or skip with the down payments leaving the owner/builder pretty much on their own to deal with the issue.