Owner-Builder Information
Permits
Property Owners can start applying for permits directly, if they are planning to do work themselves or hire their own contractors. Please see the information below to understand the different Owner-Builder types as well as benefits and risks.
OWNERS BEWARE AND CONSIDER THE RISK BEFORE ACCEPTING FULL RESPONSIBILITY FOR YOUR CONSTRUCTION PERMIT.
If you have any questions, please contact the permits division at the Department of Public Works by calling 317-545-8787 or by email at permits@cityoflawrence.org
Remodeling or adding improvements to your home?
Please see our Education and Tips section for helpful guides to assist you in completing this work safely and in compliance with applicable building standards.
Owner-Builder Guides
Hiring a Licensed Contractor means you do not personally perform any of the construction work, the permit is not taken out in your name, you are not personally responsible for the construction and you are not an Owner-Builder.
Instead, you become a “Customer” and Indiana law provides you the benefit of
protection from poor workmanship, failure to finish the job and financial risk due to worker injury.
Benefit/Risk: Highest Benefits and the Least amount of Risk
Owner-as-Worker is a type of Owner-Builder where you personally perform the construction work, the permit is taken out in your name and you are personally responsible for the construction management, knowledge, workmanship and completion of the job.
You benefit by not paying others to perform this work for you and your risk depends on your own ability to complete the job successfully.
Benefit/Risk: Possible Benefit with Low Financial Risk
Owner-as-Contractor is a type of Owner-Builder where you personally act as your own General
Contractor. The permit is taken out in your name and you hire licensed sub-contractors to perform
portions of the construction work.
WARNING: The benefit of protection provided by law when you hire only licensed sub-contractors can turn to serious financial risk if you hire unlicensed contractors to perform any of the work.
Benefit/Risk: Possible Benefit with Significant Financial Risk
Owner-as-Employer is a type of Owner-Builder where you pay any unlicensed individual to perform any construction work. The permit is taken out in your name and you are personally responsible for their employment requirements, supervision, performance, safety and welfare while on your property.
WARNING: Cost savings benefit can turn to serious financial risk if you fail to deduct payroll taxes or provide workers compensation insurance for each worker.
Benefit/Risk: Possible Benefit with Significant Financial Risk
Owner-Builder Risk Examples
Homeowner received insurance money to rebuild burned-down home.
- Owner-Builder permit pulled to rebuild structure
- Unlicensed contractor built substandard structure – must be torn down and replaced
- Estimated financial injury is $225,000.00
- Additional financial injury ~ IRS threatened to tax insurance payout if house not completed by the end of the year
Brother-in-law had active license but filed an exemption from Workers Comp
- Owner-Builder hires brother-in-law to install a new roof
- Brother-in-laws employee falls and sustains multiple spinal and extremity fractures as well as a head injury and remains in a coma to this day
- The Owner-Builder is now a defendant in a lawsuit for reimbursement for benefits paid to the injured worker
Owner-Builder hires an unlicensed individual to build a new garage and the individual suffers an injury that results in permanent disability.
- The Owner-Builder did not have a worker’s comp policy against which to submit a claim
- The Owner-Builder is now a defendant in a lawsuit for reimbursement for benefits paid to the injured worker
Owner-Builder Forms
Did You Know?
- Unlicensed persons frequently have the property owner obtain an “Owner-Builder” building permit which erroneously implies that the property owner is providing his or her own labor and material personally.
- Your homeowner’s insurance may not provide coverage for injuries sustained on your property by an unlicensed contractor and his/her employees.
- If you are considered an “employer” under State and Federal law, you must:
- Register with the State and Federal government
- Withhold payroll taxes
- Provide workers compensation and disability insurance
- Contribute to unemployment compensation for each “employee”
- If you fail to abide by these laws you may be subjected to serious financial risk.
