Alex asks: Our contractor wants us to take out the building permit for an addition under our name and says that is standard procedure. Does it matter whether the owner or contractor takes out the building permit?
Steve Bliss, of BuildingAdvisor.com, responds: In general, you are better off having the contractor take out the permit. If you take out the permit in your (the owner’s) name, then you become an owner-builder, at least with respect to the local jurisdiction (city, town, or county) issuing the permit. As an owner-builder, you may lose some of the legal protections provided to construction clients by the local or state government.
For one thing, most jurisdictions will not issue a permit to a contractor who is not properly licensed and insured Also, the person signing the permit is the party responsible for passing all inspections and obtaining an occupancy permit. Finally, some jurisdictions have consumer protection laws that may only apply if a licensed contractor signs the permit.
A contractor who insists that you draw the permit may be trying to avoid liability and responsibility for the job – not a good sign. In some cases, the owner and contractor take out the permit jointly, but with the contractor listed as the responsible party.
Laws and application forms vary a great deal from state to state, and sometimes from town to town, so it’s always a good idea to contact the local building department to discuss which approach would be best for you.
Related Links: Who Should Carry Builders Risk Insurance? Choosing a General Contractor
Michael Gibbons says
Who Can Pull A Building Permit in Florida? </h2
Is there a Florida Building Code section that states who is allowed to receive a permit? ie Contractor vs. design professional?
buildingadvisor says
In general Florida will only grant building permits to licensed contractors, unless the owner is acting as an owner-builder on a property they own and intend to occupy. Before going this route, it’s worthwhile talking to an insurance agent about the types of insurance you (and any subcontractors) should carry to protect the building and workers during the completion of the project.
Also some counties may be more restrictive than others, so it’s always best to check first with the Dept. of Building Inspection.