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<title>Re: [Florida Code Talk] Is the owner of a commercial project allowed to
subcontract to various contractors?</title>
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<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Sam, what Eric says is true, but it is conditionally true.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>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.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>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.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>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.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>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.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>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 <u>exclude</u> plumbing,
electrical, air-conditioning, roofing, etc. since the general is licensed to <u>perform</u>
them. The owner would have to <u>directly</u> supervise those particular work scopes
being done with their employees or hire a licensed contractor in each category
to directly supervise in their stead.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>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.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>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 <u>direct on-site</u>, supervision. Any work not performed as
stated must be performed by a contractor licensed in that specific scope.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>In my humble opinion,<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>R.J.Koning - Director<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Contractors Institute<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><a href="mailto:rjkoning@contractorsinstitute.com">rjkoning@contractorsinstitute.com</a><o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>8301 Joliet Street<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Hudson, Fl 34667<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>727-863-5147<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<div>
<div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'>
<p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>
codetalk-bounces@myfloridacode.com [mailto:codetalk-bounces@myfloridacode.com] <b>On
Behalf Of </b>Eric Kuritzky<br>
<b>Sent:</b> Saturday, February 13, 2010 11:18 AM<br>
<b>To:</b> Sam Nasser; codetalk@myfloridacode.com<br>
<b>Subject:</b> Re: [Florida Code Talk] Is the owner of a commercial project
allowed to subcontract to various contractors?<o:p></o:p></span></p>
</div>
</div>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal style='margin-bottom:12.0pt'><span style='font-size:9.0pt'>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. <br>
<br>
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.<br>
<br>
My humble opinion.<br>
<br>
<img border=0 width=483 height=410 id="_x0000_i1025"
src="cid:image001.jpg@01CAAFDE.29379730"><br>
<br>
<o:p></o:p></span></p>
<div class=MsoNormal align=center style='text-align:center'><span
style='font-size:9.0pt'>
<hr size=3 width="95%" align=center>
</span></div>
<p class=MsoNormal style='margin-bottom:12.0pt'><b><span style='font-size:9.0pt'>From:
</span></b><span style='font-size:9.0pt'>Sam Nasser <bnasser@cfl.rr.com><br>
<b>Date: </b>Sat, 13 Feb 2010 10:36:29 -0500<br>
<b>To: </b><codetalk@myfloridacode.com><br>
<b>Subject: </b>[Florida Code Talk] Is the owner of a commercial project
allowed to subcontract to various contractors?<br>
<br>
</span><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>The
terminated electrical contractor filed a complaint with DBPR against the owner
accusing him of practicing as a contractor without a license.<br>
</span><span style='font-size:9.0pt'><br>
</span><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>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.<br>
</span><span style='font-size:9.0pt'><br>
</span><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>DBPR
stated "By subcontracting to the electrical contractor, owner may be
practicing as a contractor without a license..." <br>
</span><span style='font-size:9.0pt'><br>
</span><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>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... <br>
</span><span style='font-size:9.0pt'><br>
</span><span style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Opinions
please.<br>
<br>
</span><span style='font-size:9.0pt'><o:p></o:p></span></p>
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style='font-size:9.0pt'>
<hr size=3 width="95%" align=center>
</span></div>
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