Building a room addition--have run into problems...opinions please?

[OklahomaTourist]

Well, if it was me, I would look elsewhere.

However, having said that, our neighbors had undertaken a number of projects with unlicensed contracts and not have a problem. And they have made it clear they would never ever use a license contractor. They also don't get permits. Sadly, having done my addition with a licensed contractor and permits, I understand that. Some of our local building codes just don't make sense.

Undertaking a project as large as the OP has indicated, I can't imagine not doing it 100% by the book and abiding by relevant codes and obtaining licensed, bonded, insured contractors. A big project like that which is discovered by the relevant municipality not to be properly permitted/licensed can shut down all work, issue fines, the works.

And I couldn't fathom taking any kind of risk where I'm the one holding the bag for any injury or related problem incurred by anyone working on the job. That's playing with fire.

 

[a1tinkfans]

OP

RUN dont walk...

insurance and licensed contractors get paid the money they do because they are REPUTABLE and they protect YOU and their workers.
Never mind co's, town ordinances etc You can be held responsible for sop many things...like injuries (they can happen) and they can say you were acting as the GC (general contractor) rather than a homeowner..
So sorry this has happened to you...hope you can get your room that you've worked so hard to save up for!
Best of Luck

 

[disneybound31]

OP

RUN dont walk...

insurance and licensed contractors get paid the money they do because they are REPUTABLE and they protect YOU and their workers.
Never mind co's, town ordinances etc You can be held responsible for sop many things...like injuries (they can happen) and they can say you were acting as the GC (general contractor) rather than a homeowner..
So sorry this has happened to you...hope you can get your room that you've worked so hard to save up for!
Best of Luck

You know, that is exactly the wording the foreman used when he told me I should go pull the permits and then they would bring in some excavating guys...he said, "you are getting the permits under your own name" and when I asked if that was standard practice, he said, "you are just acting as your own contractor as the homeowner". That didn't really sit well with me so I asked further questions and that is when he seemed to get very uncomfortable and asked that I call the head contractor with those questions. Head contractor said he would go get them but only if we gave him one of our checks instead of him paying for it and us reimbursing the fee or it being rolled into the construction payments (which we have never nailed down either) I have read to only pay 15% at beginning, then another percent after footer, another after framing, another after sheetrocking and so on...sound correct?

 

[Judique]

Head contractor said he would go get them but only if we gave him one of our checks instead of him paying for it and us reimbursing the fee or it being rolled into the construction payments (which we have never nailed down either) I have read to only pay 15% at beginning, then another percent after footer, another after framing, another after sheetrocking and so on...sound correct?

I started a substantial project one time without much knowledge of the process.

I can honestly say that the engineer at the county permit office gave me the best advice. Everything immediately came to a halt until I understood the process better. As it happened, I did become my own contractor and saved a substantial amount, but I also followed the law and kept the project out from under the table - which is where it was before the advice of the engineer. I wasn't trying to do things wrong - I was being led that way as you were.

So step back and see if you can get a handle on this.

And yes, payments in increments are a good idea.

 

[mistysue]

The insurance needs largely depend on *who* is doing the actual labor. If a subcontractor employs the laborers, they need the insurance. If the foreman is doing labor, he really needs to have insurance. If the arrangement was to hire a guy who hires companies but doesn't really do anything, his insurance doesn't really matter. Now if you are paying workers, not companies but workers, you should have liability insurance.

Now if he is having you pay workers directly, you are entering that strange area where technically YOU are the employer unless they are 1099 independent contractors, in which case you wouldn't have to pay payroll taxes but you need them to fill out a form then send them a form at the end of the year they file with their taxes. Then you wouldn't need worker's comp but may need a small liability policy. If they are employees you have to match their SS, Med, and have worker's comp if you don't want to be sued if somebody hurts something. If you aren't in to doing all of that this is probably not the situation you were looking for.

It may be worth calling your insurance agent and seeing what a general liability insurance would run you. I don't know, but it may be $100 and this whole thing becomes simple. It could save you thousands of dollars just to get an insurance rider, but then again it might not be available. Couldn't hurt to find out.

 

[Luvchefmic]

run run run from dealings with any and all of these people my deceased mil & fil had an extra room put on the house ( similiar deal to what you are describing) and when they died my sil inherited the house guess what NO certificate of occupancy on that extra addition they have been renting it out for years and probably can never sell it a real mess

 

[disneybound31]

run run run from dealings with any and all of these people my deceased mil & fil had an extra room put on the house ( similiar deal to what you are describing) and when they died my sil inherited the house guess what NO certificate of occupancy on that extra addition they have been renting it out for years and probably can never sell it a real mess

What is a certificate of occupancy? Does every home addition need to have one of these in order to be habitable? Thanks!

 

[tvguy]

Undertaking a project as large as the OP has indicated, I can't imagine not doing it 100% by the book and abiding by relevant codes and obtaining licensed, bonded, insured contractors. A big project like that which is discovered by the relevant municipality not to be properly permitted/licensed can shut down all work, issue fines, the works.

And I couldn't fathom taking any kind of risk where I'm the one holding the bag for any injury or related problem incurred by anyone working on the job. That's playing with fire.

I did the same project....adding on a 256 square foot room.

Inspections are SOOOOOOOOOO subjective.
I did have a code issue with my wood siding. Apparently there has to be a certain number of inches from the dirt to the bottom of the wood siding to meet code, 9 inches, I think. Inspector out for something else said it wouldn't pass final that way. Contractor said that was a new one on him, but if we raised the wood siding up, it would be higher than the exisiting house, which had passed final inspection. He said we would do nothing, and if it didn't pass final, he would put a sidewalk around the addition to cover up the dirt. Different inspector came out for the final, had no issue at all with the wood siding, passed no problem.

 

[Karlzmom]

You are in a different state from me, but I see several potential legal complications to what your "semi-retired" contractor is suggesting. This post is not designed to serve as legal advice, only to inform of some of the violations that we prosecute for out here in my neck of the woods:

1. aid/abetting an unlicensed contractor

2. contracting without a license

2. failure to maintain workers' compensation insurance [workers' have a right to be covered. If they don't have a contractors' license, they are likely to be deemed as the employee of *someone* who would need to have comp coverage. Are you prepared for that *someone* to be you? Or, what would you do if someone was hurt on the job?

3. Failure to account for and pay over payroll taxes - this is a potential felony here. If the workers' are deemed to be your employees, you could be on the hook. Simply issuing a 1099 to a person does NOT make them an *independent contractor* there is a series of facts that come into play and for the trades that require licenses they are almost never deemed to be *independent* as then they are running afoul of contracting without a license...they can't have it both ways.

This is the quick list that came to mind and may not be exhaustive. Whether or not *you* are ultimately liable for the workers, are you prepared for the risk? Do you want to participate in others violating the law?

Also, there are other considerations of using a non-licensed contractor to do the job. You lose the help the administrative process brings if there is a contract dispute or a complaint about the work. Also, at least in my state a licensed contractor has to pass a background check. We have caught everything from parolees, people carrying drugs on their person and even a fugitive child rapist in some of the stings we have conducted to snag unlicensed contractors.

Call you local Contractors' State License Board and report the situation. They will help you determine what is the best course of action for you and potentially help you locate licensed and bonded contractors who would love your business.

 

[Luvchefmic]

What is a certificate of occupancy? Does every home addition need to have one of these in order to be habitable? Thanks!

Check with your county, state, has to do with everything being legal..permits licenses building codes this is in NY but I would bet its every state has some requirement like it

Best of luck to you

 

[searlproudbottom]

I am a Licensed General Building Contractor working in California since 1982.

Here are my recommendations.

1. Stop the process which you are in-gauged.
2. Find three new Licensed Contractors to give you a quote on your project
(No more and no less)
3. Check out the status of their license though youre States Contractors License Board,
Its usually through the Department of Consumer Affairs.
3. Check out all three contractors references. Ask to see their work and meet with their previous clients.
4. Make sure you have a contract in writing.
5. Require your Contractor to have Workman's Compensation Insurance.
And to have their carrier send you a proof of insurance certificate.
6. Require your Contractor to send you a copy of his performance bond.
7. Require that your Contractor has a minimum of a 1,000,000 dollar Liability Insurance policy and to name you as additionally insured.
8. Require that all Subcontractors hired by the General Contractor working on your home have of a 1,000,000 dollar Liability Insurance policy.

These Items are typical and standard practice for any Legitimate Building Contractor.

Good luck
Searl

 

[rock_doctor]

If you are pulling permits and pay the subs directly then you are the general contractor. Congratulations! Your new name plate is in the mail.

Unless his price is super great i would walk away. If you don't then you need new contracts with each sub with your name on them and specifically stated what is to be done, mile stone dates, payment milestones as well as the quality of the materials. For example the drywall should start on this date with a specific amount paid, then by this date this amount of work should be done and this amount paid and then by this date it should be finished and this amount will be paid once the work is ok'ed by the city inspector. The lion share of the money will be paid once it passes inspection. The first payment should be only a token amount to get them to show up, the second should be the cost of materials and the third is their profit. They will usually fight you on the amounts but unless you do something close you do run the risk of them getting a better job and disappearing on you. I have had that happen to me.

Just remember if you pull the permits you are responsible for any inspection failures and if you pay the subs directly you are now the one they will sue if not paid or you will have to sue them if they don't do the job correctly.

good luck.

 

[disneybound31]

If you are pulling permits and pay the subs directly then you are the general contractor. Congratulations! Your new name plate is in the mail.

Unless his price is super great i would walk away. If you don't then you need new contracts with each sub with your name on them and specifically stated what is to be done, mile stone dates, payment milestones as well as the quality of the materials. For example the drywall should start on this date with a specific amount paid, then by this date this amount of work should be done and this amount paid and then by this date it should be finished and this amount will be paid once the work is ok'ed by the city inspector. The lion share of the money will be paid once it passes inspection. The first payment should be only a token amount to get them to show up, the second should be the cost of materials and the third is their profit. They will usually fight you on the amounts but unless you do something close you do run the risk of them getting a better job and disappearing on you. I have had that happen to me.

Just remember if you pull the permits you are responsible for any inspection failures and if you pay the subs directly you are now the one they will sue if not paid or you will have to sue them if they don't do the job correctly.

good luck.

Yeah, and I don't want to be the contractor!! lol I just want to feel comfortable handing over my hard earned $ and the back of my house over to a reputable person. thanks for the info!