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Discussion Starter · #1 ·
I'v got a potential client who wants to build a duplex with me as the GC but wants to do all of the work himself. In other words he wants me to pimp out my license. My W/C only covers my guys of course and any subs I use have to show proof of having W/C or they don't work on my jobs.

I considered having him to take out a WC policy thus making him a legit sub. But I don't know if he can even get W/C for one job.
I also considering having him sign a waiver releasing me of any liability or warrantee on the work that they do. I'd still be responsible for making sure that all the work is up to code and that the areas that require licensed trades, elec., plumbing, HVAC, etc. are done by qualified tradesmen.

I'm still fairly new at the GC end of this thing and the thought of making money on a job without so much as bringing a hammer to work is tempting.

I am still concerned at the legal aspects of him taking the responsibility for job safety. If he would have an accident and some one get hurt, would I be covered under the waiver that he signed? I know a lot of it would depend on how it all was worded. There would have to be a lawyer involved in writing it all up. I'd probably have to check with my GL insurance agent too.

I really don't think the guy is trying to scam me. I think he's just an old simi-retired construction worker who is trying to save money building his retirement plan. He is also considering a second duplex in the future if this one
is profitable.
I could sure use the work, but not to the point that I'd hang my ass out there for him.

I'm sure that some of you have had a similar situation. I'd love to hear your input. Thanks
Steve
 

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Pompass Ass
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I'v got a potential client who wants to build a duplex with me as the GC but wants to do all of the work himself. In other words he wants me to pimp out my license. My W/C only covers my guys of course and any subs I use have to show proof of having W/C or they don't work on my jobs.

I considered having him to take out a WC policy thus making him a legit sub. But I don't know if he can even get W/C for one job.
I also considering having him sign a waiver releasing me of any liability or warrantee on the work that they do. I'd still be responsible for making sure that all the work is up to code and that the areas that require licensed trades, elec., plumbing, HVAC, etc. are done by qualified tradesmen.

I'm still fairly new at the GC end of this thing and the thought of making money on a job without so much as bringing a hammer to work is tempting.

I am still concerned at the legal aspects of him taking the responsibility for job safety. If he would have an accident and some one get hurt, would I be covered under the waiver that he signed? I know a lot of it would depend on how it all was worded. There would have to be a lawyer involved in writing it all up. I'd probably have to check with my GL insurance agent too.

I really don't think the guy is trying to scam me. I think he's just an old simi-retired construction worker who is trying to save money building his retirement plan. He is also considering a second duplex in the future if this one
is profitable.
I could sure use the work, but not to the point that I'd hang my ass out there for him.

I'm sure that some of you have had a similar situation. I'd love to hear your input. Thanks
Steve
Run away from this "Job".
 

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I wouldn't do it. If you do you better check with your state licensing regulation board as to what you need to have to legally do it. Here you have to get a separate license for a joint venture, it may be different where you're at.
 

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If he would have an accident and some one get hurt, would I be covered under the waiver that he signed? I know a lot of it would depend on how it all was worded. There would have to be a lawyer involved in writing it all up. I'd probably have to check with my GL insurance agent too.
This is legal advice, that a lawyer would best be consulted about. But generally, you cannot sign away your rights by signing a waiver.

I really don't think the guy is trying to scam me. I think he's just an old simi-retired construction worker who is trying to save money building his retirement plan. He is also considering a second duplex in the future if this one
I think he is sincerely looking for ways to do the work, and to save money. He isn't trying to scam you, but he is putting you at risk due to his own naivete.
 

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Not worth the risk for you to do what he proposes. A W/C waiver won't hold up in court if something goes south.

Have him get his own general liability, and if he is a sole proprietor, he may not need W/C.

Then you can GC the job with him as a sub.
 

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Discussion Starter · #8 ·
Thanks guys,
I've had a bad feeling about this deal all day at work today. All of you are saying exactly what I've been thinking. It just ain't worth the risk.

My WC agent concurs with yall on the waiver idea too, she didn't bring up wiping anything with it though.:laughing:

I'll check on the GL Cook, thats a possibility.

I appreciate the opinions gentlemen. :thumbsup:
 

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Thom
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Actually you have several other issues.

If you are the GC, the work must go through you and be on your books. This means liability insurance also. Because you would pull the permit, you guarantee the work. If he or one of his subs/employees screw up, you are on the hook. You can always try to recover by going after the next guy in line but finding a sympathetic judge when you assisted the owner in circumventing the law will be tough.
 

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Discussion Starter · #10 ·
Actually you have several other issues.

If you are the GC, the work must go through you and be on your books. This means liability insurance also. Because you would pull the permit, you guarantee the work. If he or one of his subs/employees screw up, you are on the hook. You can always try to recover by going after the next guy in line but finding a sympathetic judge when you assisted the owner in circumventing the law will be tough.
Won't be circumventing the law thom, I've got liability. WC too on my crew and as I said earlier I require all my subs to show proof of WC. with the company name on the policy. Not Joe the floor guy that works for XYZ Floor Co.
XYZ might have WC but thats doesn't mean squit if Joe comes out after work and does the job.

What it amounts to is I'm trying to justify an uninsured sub to work on my job.
I've thought about it all day and that is the thing that is bothering me about this job.

In SC its not required to have liability or WC if less than 3 full time employees. Which I dont. But I wouldn't be able sleep at night if I didn't have it.
As far as the work, it wouldn't be any different than working a new sub that I havent worked with before. I'd definitely be eyeballing his work. Unsat is unsat. Whether the building is his property or not is irrevelant. My contracts say unsat work if not brought to standards is grounds for ternination.
 

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I think you are trying to take on too much of the burden to help this guy out. Your license, your W/C, you doing the investigation into how to proceed with him on your job.

Turn the responsibilty back to him.

"I'd love to be the GC on the job, but in order to allow you to work on the project, you need to get W/C on yourself and sign a subcontractor agreement with me."

Then let him figure it out on his own. If he is really interested, he will, or if he is just trying to save a buck, you'll find that out right away.

Also, you could try putting on your best sales pitch to allow you to GC the entire job.
 

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Discussion Starter · #12 ·
Talked to the guy tonight. Pretty much told him what cooke just posted then told him what it was going to cost. I think i heard him do this: :eek:

Might not have to worry about him any more anyway.

Oh well, pimping aint easy. :no:
 

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Talked to the guy tonight. Pretty much told him what cooke just posted then told him what it was going to cost. I think i heard him do this: :eek:

Might not have to worry about him any more anyway.

Oh well, pimping aint easy. :no:
Good for you! Stickin' to your guns and going with your gut ALWAYS saves your A$$ in the long haul.:thumbsup:
 
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