[Florida Code Talk] Is the owner of a commercial project allowed to subcontract to various contractors?
Bob Koning
Bob at ContractorsInstitute.com
Wed Feb 17 15:51:22 EST 2010
More information about the CodeTalk mailing list
Wed Feb 17 15:51:22 EST 2010
- Previous message: [Florida Code Talk] Is the owner of a commercial project allowed to subcontract to various contractors?
- Next message: [Florida Code Talk] no permit question
- Messages sorted by: [ date ] [ thread ] [ subject ] [ author ]
Sam, what Eric says is true, but it is conditionally true. According to the construction industry licensing board, if a contractor pulls a permit for construction as a "construction manager" or has performance duties as a construction manager, all of the subcontractors and all of the money must flow through the licensed contractor's firm. The owner cannot have a contractor obtain a permit and then negotiate or hire subcontractors or material men and pat them directly. There is a board opinion letter affirming this. Think about it this way; if an owner is allowed to hire a contractor to obtain a permit and then negotiate, hire, contract and compensate persons or entities to perform or the work or supply materials under that permit - the contractor would be aiding and abetting an unlicensed entity. I.e., the contractor is allowing the owner to "play contractor" and all parties will be caught in the middle. This is why it is not acceptable. I'm not sure if the ECLB has a similar opinion, but if a general or building contractor pulled a building permit, then it is under the construction industry licensing board anyway. The only way an owner may directly perform the work is if that owner obtains a permit in the owner's name. There is no monetary limit to the value of construction that an owner may permit in his or her own name if the construction is residential, but if the construction is commercial, the value limit is $75,000. In both cases, the owner must own the property in their own name and not in the name of an entity. In both cases, the owner must directly, on-site supervise any worker who is not a licensed contractor and all workers who are not licensed contractors must be bona-fide employees of the owner. The owner may hire a licensed contractor to supervise the construction, but that contractor can only supervise work that he or she can perform. I.e. if an owner hired a general contractor to supervise the construction under an owner builder permit, the contractor could supervise any work they are licensed to perform. This would exclude plumbing, electrical, air-conditioning, roofing, etc. since the general is licensed to perform them. The owner would have to directly supervise those particular work scopes being done with their employees or hire a licensed contractor in each category to directly supervise in their stead. If the owner does not want to do this (who would) the owner has the option of; 1. Perform the work with his or her own employees under the owner's direct supervision or 2. Hire a contractor licensed in that specific category to perform the work. It is as simple as that. In other words, the intent of the statute allows a building or home owner to obtain a building permit and perform the work on their own property by way of their own hands, or by the use of their own employees under the owner's direct on-site, supervision. Any work not performed as stated must be performed by a contractor licensed in that specific scope. In my humble opinion, R.J.Koning - Director Contractors Institute rjkoning at contractorsinstitute.com 8301 Joliet Street Hudson, Fl 34667 727-863-5147 From: codetalk-bounces at myfloridacode.com [mailto:codetalk-bounces at myfloridacode.com] On Behalf Of Eric Kuritzky Sent: Saturday, February 13, 2010 11:18 AM To: Sam Nasser; codetalk at myfloridacode.com Subject: Re: [Florida Code Talk] Is the owner of a commercial project allowed to subcontract to various contractors? The general contractor is responsible for the primary building construction. Either the general, or the owner, can hire (contract) the required subs, who all reference the prime permit number for their individual permits. There is nothing I am aware of to prevent this, as you pointed out, as the owner is allowed to hire anyone. The owner is not the contractor, and the permit is not in his name. So he is not acting as the contractor, but only establishing the contractual relationships for the licensed contractors and subcontractors. Instead of having all the subcontracts go through the general, which is normal. I don't see a problem here. There is, however, the ultimate problem of disputes and coordination. If the subs are not contracted directly with the general, there is a possibility for coordination problems which, if the subcontracts are not written properly, could hold the owner responsible for coordinating the subs with the general. But that is a contractual relationship, not a code relationship. My humble opinion. ________________________________ From: Sam Nasser <bnasser at cfl.rr.com> Date: Sat, 13 Feb 2010 10:36:29 -0500 To: <codetalk at myfloridacode.com> Subject: [Florida Code Talk] Is the owner of a commercial project allowed to subcontract to various contractors? The terminated electrical contractor filed a complaint with DBPR against the owner accusing him of practicing as a contractor without a license. The commercial project has a contractor who pulled the permit and manages the project on DAILY basis and the owner is appointed by the contractor as the project manager. The owner signed the work contract with the terminated electrical contractor and paid him directly in coordination with and under supervision of the contractor. DBPR stated "By subcontracting to the electrical contractor, owner may be practicing as a contractor without a license..." Multiple prime contracts in chapter 8 of the contractor manual, allows the owner to directly contract with specialized trades such as electrical, plumbing, HVAC, etc., etc., and also to coordinate the work of the various contractors... Opinions please. ________________________________ _______________________________________________ CodeTalk mailing list CodeTalk at myfloridacode.com Unsubscribe by sending an email to codetalk-unsubscribe at myfloridacode.com or Unsubscribe or change your options at: http://myfloridacode.com/mailman/listinfo/codetalk -------------- next part -------------- An HTML attachment was scrubbed... URL: http://myfloridacode.com/pipermail/codetalk/attachments/20100217/1f627893/attachment.html -------------- next part -------------- A non-text attachment was scrubbed... Name: not available Type: image/jpeg Size: 58150 bytes Desc: image001.jpg Url : http://myfloridacode.com/pipermail/codetalk/attachments/20100217/1f627893/attachment.jpe
- Previous message: [Florida Code Talk] Is the owner of a commercial project allowed to subcontract to various contractors?
- Next message: [Florida Code Talk] no permit question
- Messages sorted by: [ date ] [ thread ] [ subject ] [ author ]
More information about the CodeTalk mailing list