Ok have a situation I would like some input on. First I am a General Contractor but I mainly work as a sub doing finish work. I have done some small shop/garage building in the past as a GC where I used one sub concrete flatwork and I did all the rest. I started as a framer so I have that experience but I don’t pretend to know it all.
Anyway a GC that I sub for is getting out of the bus he has a client (husband/wife) that want to build and be owner/builder. They want someone to hold their hand, make sure subs are doing what they should ect. They will make all contacts with subs ie hire them (some are ones we used before) some they have chosen. They will get all permits and pay subs. Well it started out I was fine with that for a fee and a hourly rate. Now the bank won’t do their loan unless a contractor is listed on the loan ( that would be me) I would also be on the checks to pay out the subs.
I have never had to do any of the administrative stuff before, if I had a sub I would just pay cash or write a check because the jobs were small $20,000 or less. So what I am concerned with is what liability do I have am I putting myself into any trouble down the line. We have yet to sign a contract but are at the understanding that the owners take full responsibility. No one year warranty from me except for actual work done like the finish work. My GC is a buddy and mainly letting me get my feet wet so to speak so if I choose to GC anymore in the future I will have some experience. Being on the loan also gives me a foot in the door with the bank for the future.
The owners were suppose to make it clear to the bank that they were going as owner/builder. Did they forget or what I don’t know I don’t think they are trying to pull a fast one. Both husband and wife are fulltime teachers. They are comfortable with the situation and me helping out and actually my buddy the GC getting out of the business has met with them and said if questions come up he is there also as backup.
Anyway let me know what you think don’t rip me too much. Jeff
Replies
Another option might be for them to find another source of finacing.
There are banks that specialize in owner-builder financing.
A google search will find them.
Breaktime is a great place, but a bad place to ask the question you have. You need a lawyer, and a written contract if you proceed with the work.
sounds like you don't feel qualified to run the money ...
so you aren't.
and that's probably a smart thing.
like someone else said .. let them find the money somewhere else.
Me ... I'd not wanna work with subs that I don't know and someone else picked out. I use my guys because I have developed a relationship with them. In that situation .. I see you having all the responsibility with none of the power.
how do U effectively over see subs u have no real power over? And how do U have any power over guys you can't hire or fire?
garages don't have tons of electrical/plumbing/hvac etc ...
do you have a good enough handle on everything above and beyond framing to know the steps and spot the mistakes?
Jeff
Buck Construction
Artistry in Carpentry
Pgh, PA
Don't be listed as GC if you are not comfortable ACTUALLY being the GC. By listing yourself as such... you will most likely be the responsible party.... my guess; even if you have a contract that transfers that liability. The building laws are what they are... and the banking laws are what they are... a piece of paper between the two of you will not change those laws, if in conflict with your contract.
I agree... let them acquire alternate financing. There are a bazillion and a 1/2 lenders that will work with owner/builder arrangements. They may require the archy to sign off on the submissions. Not real expensive to arrange that with any decent archy. They may even be able to arrange an archy's sign-off with the existing lender. Won't know if they don't ask.
When advising them... remind them that it is the bank that is working FOR them... NOT the other way around (banks have a difficult time understanding this concept sometimes). If the "worker" (the bank) is not doing an acceptable job.. replace them.
I have no real issue with consultants.... working with a great "owners rep" (consultant) on a job right now. I do have issue with a consultant being "listed" as the GC.... as this seems to be going in the back-door with the bank... and that COULD (not necessarily IS... but COULD) be considered a violation of the banking regs. Note... I am not familiar enough with the bank regs to be sure... but the logic follows (not that all laws are logical, but many are). I certainly would check it out BEFORE putting your name on the dotted line in this situation.
Last word of advice.. be sure you have a contract that spells out your responsibilities as consultant... and that your role is STRICTLY as an adviser. You can direct some work to be done, as a consultant... but you cannot make final decisions about $$ or subs or anything else that involves "control" of the site. When you take control of the site... you assume responsibility for that which you control... and possibly some things you do not control. Be sure to keep your "adviser" status just that... "adviser". And contact your insurance guy to pick up errors and omissions insurance to cover your exposure.
Edited 2/13/2005 11:32 pm ET by Rich from Columbus