Owner-Builder Information
Are you considering becoming an owner-builder? An owner-builder is a property owner who acts as their own general contractor for construction, repair, or remodeling projects on their own property, rather than hiring a licensed contractor for the entire job. While exempt from state licensing requirements, owner-builders assume full responsibility for all project phases, including code compliance, safety, and hiring subcontractors.
Hiring a California licensed contractor means you do not personally perform any of the construction work, the permit is not taken out in your name, you are not personally responsible for the construction and you are not an “owner-builder.” Instead, you become a “customer” and California law provides you the benefit of protection from poor workmanship, failure to finish the job and financial risk due to worker injury.
The information below includes important information regarding risks and responsibilities associated with acting as an owner-builder. Please read the following thoroughly; as it is provided for your benefit and protection. A tenant of a building cannot pull a permit unless they are an agent for either the property owner or contractor. Agents shall provide a signed letter to the City verifying their name and the authority granted to them as an agent acting on behalf of the property owner or contractor.
Prior to issuance the following items related to electing to be an owner-builder must be completed:
- The Owner-builder declaration must be completed on the permit application.
- The workers Compensation declaration must be completed on the permit application.
- A completed and signed Owner-builder acknowledgment form(PDF, 34KB) must be uploaded to the Accela record.
For a complete owner-builder overview, please see the California State License Board website
Owner-Builder Information Pamphlet
Owner-Builder Overview
Know the Risks Of Being an Owner-Builder
Owners should be aware of and consider the risk before accepting full responsibility for any construction permit.
Owner-builder permit application designation types
The term "owner-builder" can mean three different things:
1. Owner as worker
2. Owner as contractor
3. Owner as employer
Understand that each has benefits and risks, and it is possible to combine them.
Owner's function in project
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Owner-as-worker
A type of “owner-builder” where you personally perform the construction work. The permit is taken out in your name and you are personally responsible for the construction management, knowledge, workmanship and completion of the job. You benefit by not paying others to perform this work for you and your risk depends on your own ability to complete the job successfully.
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Owner-as-contractor
A type of “owner-builder” where you personally act as your own general contractor. The permit is taken out in your name and you hire California licensed sub-contractors to perform portions of the construction work.
Warning: The benefit of protection provided by law when you hire only California licensed sub-contractors can turn to serious financial risk if you hire unlicensed contractors to perform any of the work.
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| Owner-as-employer
A type of owner-builder where you pay any unlicensed individual to perform any construction work valued at more than $500.00. The permit is taken out in your name and you are personally responsible for their employment requirements, supervision, performance, safety and welfare while on your property.
Warning: Cost savings from this benefit can turn to serious financial risk if you fail to deduct payroll taxes or provide workers' compensation insurance for each worker.
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Some possible |
Significant |