FAQs

What is an “Owner/Builder” permit?

An “Owner/Builder” permit means that the property owner is acting as his/her own general contractor and assumes full responsibility for the project. If the owner hires anyone who is not a state-licensed contractor to do the work, then the owner becomes an employer. Consequently, the owner may need to register with the state and federal government as an employer and may be subject to state and federal income tax withholding, federal social security taxes, worker compensation insurance, disability insurance and unemployment compensation contributions. The Building Division is required to verify worker compensation insurance coverage in this case, and may not issue a permit until that is done. Furthermore, if a worker is injured on the job, the owner is liable for compensation. However, if the owner hires a licensed contractor to do the work, the contractor is responsible for worker compensation insurance and the construction. To verify that a contractor’s license is current, please visit the Contractor’s State License Board Web site at: http://www.cslb.ca.gov/. This Web site has many other useful resources for homeowners.