What do you take on when you build your own house without a general contractor?
Published
Summary
You take on the general contractor's job, and in California the state spells out what that means. When you sign a building permit application as an owner-builder, the Contractors State License Board says, you assume full responsibility for all phases of the project. That covers pulling permits, passing inspections, ordering and paying for materials, and scheduling, supervising and paying subcontractors. Hire anyone other than a licensed subcontractor and you may become an employer as well.
The signature on the permit
CSLB lists the owner-builder's duties plainly. You pull all the building permits. The work has to pass code and building inspections. You order materials and make sure every supplier is paid, and you schedule, supervise and pay the subcontractors.
Payment is where it can bite. Subcontractors and suppliers who aren't paid on schedule may file mechanics liens against your property. If a worker gets hurt, or a subcontractor turns out to be unlicensed or uninsured, CSLB says you could be asked to cover injuries and rehabilitation through your homeowner's insurance, or face a lawsuit.
When you become an employer
Use anyone other than a licensed subcontractor and California may treat you as an employer. Employers have to register with the state and federal governments and handle income tax withholding, Social Security taxes, workers' compensation insurance, disability insurance and unemployment contributions.
When you don't need a license
California exempts owner-builders from contractor licensing within limits. CSLB's summary gives three routes:
| How the work gets done | Limit |
|---|---|
| You and your own employees, paid wages only | The structure isn't intended for sale |
| Licensed subcontractors | For a single-family home, no more than four structures intended for sale in a calendar year |
| A licensed general building ("B") contractor | No limit on the number of structures |
If you do some or all of the work yourself and then sell, you must live in the house for a year before the sale, and that applies to no more than two structures in three years. Well drilling (C-57 work) is off limits to property owners.
What the Census numbers show
The Census Bureau counts a house as owner-built when the owner acts as general contractor on their own land. Most of these are built partly by the owner and partly with paid help. Some are built entirely by subcontractors, and a few entirely by the owner. For homes started in 2022, they took an average of 12.1 months from start to completion, two months longer than contractor-built homes at 10.1. Our timeline guide breaks that down by region.