This section outlines the job responsibilities of a property owner when they decide to handle their own construction projects as an owner-builder.
When you sign a building permit application as an owner-builder, you assume full responsibility for all phases of your project and its integrity. You must pull all building permits. Your project must pass codes and building inspections.
The owner-builder is responsible for ordering materials and making sure all suppliers are paid.
An owner-builder also is responsible for supervising, scheduling, and paying subcontractors. If you use anyone other than a licensed subcontractor for work, you may be considered an "employer."
Employers must register with the state and federal governments and are obligated to participate in state and federal income tax withholding, federal Social Security taxes, workers' compensation insurance, disability insurance costs, and unemployment compensation contributions.
TIP: For more specific information about your obligations under federal law, contact the Internal Revenue Service at (800) 829-1040, and the U.S. Small Business Administration at (800) 359-1833. For more specific information about your obligations under state law, contact the Employment Development Department at (916) 653-0707, the Department of Industrial Relations at (415) 703-5070, and the Franchise Tax Board at (800) 852-5711.