Understanding Owner-Builder Permits

What They Are, and Why You Should Be Cautious

In California, an “Owner-Builder” permit allows a property owner to take responsibility for construction work without hiring a licensed contractor. While this may sound cost-saving or convenient, it often leads to confusion, legal liability, and serious safety risks — especially in cities like San Francisco.

What Is an Owner-Builder Permit?

An Owner-Builder permit allows a property owner to:

• Apply for a construction permit under their own name

• Take full responsibility for supervising or performing the work

• Legally act as their own contractor

This is only legally valid if the owner truly performs the work themselves or hires properly licensed subcontractors — and keeps full documentation.

Common Misuses and Abuse

Unfortunately, Owner-Builder permits are often abused to bypass the legal requirement of hiring licensed contractors. Misuses include:

• Property owners unknowingly signing permits they don’t understand

• Contractors pressuring owners to “pull the permit” themselves

• Unlicensed workers performing complex or hazardous work

• Improper classification of specialized trades (e.g., signs, awnings)

This leads to unsafe buildings, code violations, insurance problems, and financial risks for the property owner.

Your Legal Responsibilities as an Owner-Builder

If you apply for a permit as an Owner-Builder, you are legally responsible for:

• The quality and legality of all work performed

• Hiring workers with proper licenses and insurance

• Worker injuries and safety compliance

• Code compliance and final inspections

In short, you become the general contractor, with all associated risks.

How to Protect Yourself

If you’re a property owner:

• Always ask if you’re signing as an Owner-Builder

• Insist on using licensed professionals with proper credentials

• Get everything in writing

• Ask the city to clarify what permit you’re signing

• Double-check the contractor’s license classification with CSLB