MyFloridaCode.com

I agree with Mr. Koning regarding the owners relationship with the subcontractors, but that raises additional conflicts not yet discussed: (my opinions ONLY)

If an owner hires and pays the subs, how does the contractor prove he is running the project ? Further, if the contractor pulled the permit, but the owner hired, fired or otherwise controlled the subs, then he (or she) must be a employee of the contractor to do so legally. We all know Florida requires all individuals involved in construction activities to either carry workers compensation or obtain an exemption from the state. If you are an owner conducting any part of the construction duties, then you must still be covered to do so. In order to be exempt, you must first be an officer of the contractors corporation. Florida strictly has owner/builder and contractor status, period. You cannot be both on the same project. I think you can see where I am going here. I would think the State charges would be the least of your concerns when compared with workers comp fraud, evasion or failure to pay federal employment taxes and carry the required insurance. Anyway, It is the contractor that has the biggest liability with the state, as he would be the one convicted of aiding and abetting, not the owner. Unless someone files a complaint specific to the contractor, I doubt the state would do it themselves, so he is probably in the clear. The state generally does not push very hard on tax related issues, as it is technically not their problem, but I would find a way to come to terms with the complaintant (sub), before it goes to a real court of law and the opposing counsel makes these potentially criminal issues a matter of record that can't be ignored. I know of an individual in Tampa that redid an apartment complex, hired a GC to pull the permit and stay away. By the time it was over, the GC lost (gave up) his license and the owner was in jail on tax fraud.

Just my 2 cents worth,

Eugene

 

 

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