Owner Builder Information
Owner / Builder Definition
Any individual, or group of individuals, who own the property on which they plan to construct, alter, repair, improve, or remodel a building or structure. Also, a tenant may be considered an owner / builder (case-by-case).
An owner / builder is exempt from licensure, but there are limitations. A license is not required if:
- The owner / builder does the work himself or herself or through his or her own employees with wages as their sole compensation and the structure(s) is/are not intended for sale.
- The owner / builder contracts with properly licensed subcontractor(s).This exemption applies to the construction of a single-family residential structure and limits the number of structures intended or offered for sale to four or fewer in a calendar year.
- The owner / builder contracts with a general building ("B") contractor. The number of structures is then unlimited.
A homeowner improving his or her principal place of residence is exempt from licensure if all of the following exist:
- The work is performed prior to sale;
- The homeowner resides in the residence for the 12 months prior to completion of the work; and,
- The homeowner has not taken advantage of this exemption on more than two structures during any three-year period.
Property owners are prohibited from performing well-drilling work covered under the C-57 Well Drilling classification.
Owners / builders exemption applies to
The owner / builder exemption would apply to an individual who builds homes for resale under any of the following conditions:
- Licensed tradesmen are hired to perform all work on the project, provided no more than four structures per calendar year are intended for resale.
- A licensed general contractor is hired to perform and/or subcontract the completion of all work on the project. There is no restriction on the number of structures completed per calendar year
- The owner / builder performs the work, all or in part, and resides in the completed structure for one year prior to resale. This applies to no more than two structures in a three-year period.