Replies

1. 
   tkiser | Nov 15, 2009 06:06pm | #1

   We are building a house for a client. The bank is paying ALL bills. Do I need to make sure all insurance and license are current? I do this all the time but is this really my job, since the bank is paying the bills?

2. 
   danusan10 | Nov 15, 2009 06:17pm | #2

   yours or theirs? You best have builders risk current, liability, workers comp.,inland marine Their side best carry homeowners on structure. Who's pulling permit, who's hiring,paying subs all these affect your insurance and your liability exposure.

3. 
   davidmeiland | Nov 15, 2009 06:23pm | #3

   Pretty good question for your insurance broker. IMO you are still the contractor even if the bank & owner are not having you disburse the money, and I would stay fully insured. When they audit you the question will be, what dollar amount is classified as gross receipts? Naturally the insurer will want as much premium as they can collect, so they'll say 100%. My insurance policy has a clause relating to this type of thing, which basically says that work done under my supervision is part of gross receipts no matter who writes the checks to subs and vendors. Your only other option is to become a legit hourly employee of the owner, and then it's on his nickel.

4. 
   maverick | Nov 15, 2009 06:47pm | #4

   WHO is hiring the subs? you, the homeowner or the bank?

   someone needs to collect certs

   whoever is writing the checks is on the hook. if its you then a percentage mark-up is in order to cover the paperwork

1. 
   davidmeiland | Nov 15, 2009 06:55pm | #5

   >>whoever is writing the checks is on the hook

   That is not necessarily true, and he would be unwise to take it as fact.