home remoldel tip

Watch out unlicensed contractor during economic down turn

Last month I had a friend who is remodeling a 50 year’s old house he just bought. Since it is a very old house, a lot of stuff need fix. Plus existing floor plan need a lot alternation to fit modern living. So the project became a fare good size project.

Since most of wall open to redo new electrical, new plumbing, new central heating, new framing for alternated wall. Then house have a lot area re do drywall, new interior door, door casing, baseboard. After all new stuff in, this old house looks like new house. So just like every one having new house, owner wish also put luxury crown molding in as well.

But after all this new wood work in, the next thing happen is painting. For the best result of wood work paint. Spray paint is definitely an answer. It is a 1600 sf, 4 bed 2 bath room house with more then 20 new smooth surface interior doors.

A professional crew did estimate $5500, and owner get a crew estimate $2000, when the owner consult with me if he should ask the cheaper crew to do it, I just feel some thing not right. We are professional we see the job we know how much profit how much cost roughly will be. For this work if a good work will be delivered. Kelly more paint material already cost 1000. for the labor do proper taping covering in between spray, it might take 4 guy 4 day minimum work to do. For clean up and touch up detail. That need another day work for 4 guy, if labor cost average $150 per day, it already cost $3000. tax and insurance, worker’s come… overhead for crew, may be another $500-$700. so I think the professional crew give very good price for this job. But how come other crew can do $2000? I really don’t understand. But by the end owner deceived use cheaper crew try to save little money.

Since I need monitor the job for owner, I do went to the job when the first day this cheap painting crew start work. I expecting they will come patch the nail hole on wood work and caulking all the intersection between wood work and wall ceiling. I was surprised they start rolling paint on the wall first. It is wrong step to do the job.

So I ask the crew, how you are going to do the wood work? The answer is we will roll and brush it. By the way they have 4 guys work too. I called owner right way to suggest fire this crew. Then I heard the crew worker talking complain their boss pay them not enough, even one of the worker ask me if I can find other job for him. He said he have to work 12 hour a day and only get paid $80 per day. Which minimum pay rate with now over time pay. And definitely they pay cash without pay any payroll tax and worker’s compensation cost. I am sure this crew have no license at all. I did calculation for them. They work 12 hour, per day. So labor cause $1200 for 4 guy work 4 day and they must ask owner pay for material because they don’t have account on Kelly More paint store because they don’t have license. So this crew owner will make $800 cash for himself.

I am glad I caught them in the first day just from watch them work, it is none experienced unlicensed crew, and they might hired illegal worker as well. And if the first brush work on the wood work, the whole job will be ruined. And nice paint work on the nice finish wood work is the main sparkling part of all the work all about. On the other hand. Owner have the biggest risk on all labor law. Any one get injury on the job. They can sue owner and get owner property on the lien for the compensation to injury worker, also owner have liability to pay all worker’s payroll tax and have liability for hiring illegal worker.

In conclusion I would like advise all owner doing your own project without any professional help. Compare price. It tell your some thing. Like this project. If the second crew have $500 even $1000 different, I might considered. But for this big different I can tell either he try to get job first and charge some extra from any small change later, or he really don’t know how to do this. Have some one give professional suggestion always good thing to do.

Good luck for every one wish to live in your dream home.

owner builder should beware of

There some important things owner builders should be ware of



In this economic down turn, bank have now construction loan at all. And bank also have very restrict for equality loan. Home owner try to save money and take risk to be an owner builder instead hiring quality general contractor.


A lot of people made money by doing this before economic crash. When housing market booming they turn around sold it as is right after build.


First, owner builder is legal only if owner build it self or owner hire licensed sub contractor, most people not doing this at all. They do everything by other people, a small group of people used to work for other company, and now they got laid off. They travel around city looking for construction site ask for job.


Owner have obligation for the following liability.


1. Owner has liability for IRS about all the people’s payroll tax.
2. owner have liability for Workers compensation insurance
3. Owner has liability for all payee income tax if they miss report tax. Because every individual which have no contractor license maximum can get paid without w-9 report no more than $750 per year.
4. owner also liable for all the penalty for delay report


even some time owner hired some sub contractor, they have worker’s compensation insurance, but actually sub contractor owner just have certificate for owner exemption, he report have no employee, or just report one or two employee to get certificate. Then they hire more workers without put them in the payroll. Which means insurance not cover if any of them not in the payroll? Which means it will hold owner liability as well if worker open law suit for injury. Which means it is possible owner’s property might put on security on the law suit lien, and which means if bank find out the situation bank might ask you pay off all the loan right way. Especially owner borrowed equality loan but tear down the whole house without get bank agreement to do so.


Second: owner builder build home legally can not sale without live in the house at least one year after build. And also owner builder have same liability for the construction since owner act as a general contractor. Most general contractor has liability insurance. But most owner never pay attention check with their insurance carrier if the policy cover construction work or how the cover it.


Third: owner builder have not enough knowledge about poseur how to build and how to schedule each trade. It is because a lot miss functional scheduling. So the job runs a lot worse and complicated. Sub contractor get mad by wasting more time to go in back and force in the wrong time, and end up either argument arise, or sub hire temporary cheap labor from homedepo and not pay them as the discussed after work, the quality turn bad and even some time labor come back steel stuff because not get paid right.
So be careful when you have no choice to do so.