Item G1BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: July 18, 2012 Division: Growth Management
Bulk Item: Yes _ No X Department: Buildin¢
Staff Contact Person/Phone #: Jerome A. Smith, Jr.
(305,)453-8729
AGENDA ITEM WORDING: Discussion of attached owner/builder memo and Florida Statute
§489.103(7) specifying what an owner/builder can do.
ITEM BACKGROUND: Staff has been asked to prepare a memo outlining the owner/builder process
and the rights and responsibilities under Florida Statute §489.103(7)
PREVIOUS RELEVANT BOCC ACTION: n/a
CONTRACT/AGREEMENT CHANGES: n/a
STAFF RECOMMENDATIONS: n/a
TOTAL COST: INDIRECT COST:
DIFFERENTIAL OF LOCAL PREFERENCE:
BUDGETED: Yes No
COST TO COUNTY: SOURCE OF FUNDS:
REVENUE PRODUCING: Yes No AMOUNT PER MONTH Year
APPROVED BY: County Atty _ OMB/Purchasing
DOCUMENTATION: Included X Not Required.
DISPOSITION:
Revised 7/09
Risk Management
AGENDA ITEM #
MEMORANDUM
MONROE COUNTY GROWTH MANAGEMENT DIVISION
We strive to be caring, professional and fair
To: Monroe County Board of County Commissioners
From: Jerome A. -Smith, Jr., C.B.O.
Date: June 29, 2012
RE: Owner/Builder Permits
The mechanism by which a property owner(s) can apply for a building permit is found under Florida
Statute §489.103(7), which is actually an exception to contractor licensing. Florida law requires a
licensed contractor to apply for and obtain building permits with a few exceptions. The section
controlling owner/builder(o/b) is specific and lengthy. The intent was to allow knowledgeable
individuals to do their own work, on their own property within specific parameters.
I have been asked, specifically, in regards to sewer laterals, what is the o/b process? The
owner/builder applies for a permit exactly like a contractor would. I use the analogy of acting pro se
in a court, you are allowed to act as your own attorney, but you are not afforded any special
treatment. An o/b must personally appear to apply and pick-up. Monroe County Code §6-101(b)
states, "Agents for owner builders. In accordance with F.S. ch. 489, an agent may not apply for, nor
be issued a permit on behalf of an owner builder." The o/b must sign the acknowledgement form at
the counter, which will be notarized, initialing and agreeing to each condition as required by Statute.
The o/b's responsibilities include, but are not limited to, having the knowledge and ability to do the
work. If they do not do the work, the must personally supervise the work. If the o/b does not hire
licensed contractors, they are required to provide workers compensation insurance commensurate
with the work being performed, unemployment insurance, FICA and Social Security Tax
contributions. O/b's are allowed to hire their neighbor, or anyone else, meeting the conditions of
§489.103(7).
"(7) Owners of property when acting as their own contractor and providing direct, onsite
supervision themselves of all work not performed by licensed contractors:
(a) When building or improving farm outbuildings or one -family or two-family residences on
such property for the occupancy or use of such owners and not offered for sale or lease, or
building or improving commercial buildings, at a cost not to exceed $75,000, on such property
for the occupancy or use of such owners and not offered for sale or lease. In an action brought
under this part, proof of the sale or lease, or offering for sale or lease, of any such structure by
the owner -builder within 1 year after completion of same creates a presumption that the
construction was undertaken for purposes of sale or lease.
(b) When repairing or replacing wood shakes or asphalt or fiberglass shingles on one -family,
two-family, or three-family residences for the occupancy or use of such owner or tenant of the
owner and not offered for sale within 1 year after completion of the work and when the
property has been damaged by natural causes from an event recognized as an emergency
situation designated by executive order issued by the Governor declaring the existence of a
state of emergency as a result and consequence of a serious threat posed to the public health,
safety, and property in this state.
This subsection does not exempt any person who is employed by or has a contract with such owner and who
acts in the capacity of a contractor. The owner may not delegate the owner's responsibility to directly
supervise all work to any other person unless that person is registered or certified under this part and the
work being performed is within the scope of that person's license. For the purposes of this subsection, the
term "owners of property" includes the owner of a mobile home situated on a leased lot. To qualify for
exemption under this subsection, an owner must personally appear and sign the building permit application
and must satisfy local permitting agency requirements, if any, proving that the owner has a complete
understanding of the owner's obligations under the law as specified in the disclosure statement in this
section. If any person violates the requirements of this subsection, the local permitting agency shall
withhold final approval, revoke the permit, or pursue any action or remedy for unlicensed activity against
the owner and any person performing work that requires licensure under the permit issued. The local
permitting agency shall provide the person with a disclosure statement in substantially the following form;
DISCLOSURE STATEMENT
1. 1 understand that state law requires construction to be done by a licensed contractor and have applied
for an owner -builder permit under an exemption from the law. The exemption specifies that I, as the
owner of the property listed, may act as my own contractor with certain restrictions even though I do not
have a license.
2. 1 understand that building permits are not required to be signed by a property owner unless he or she is
responsible for the construction and is not hiring a licensed contractor to assume responsibility.
3. 1 understand that, as an owner -builder, I am the responsible party of record on a permit. I understand
that I may protect myself from potential financial risk by hiring a licensed contractor and having the permit
filed in his or her name instead of my own name. I also understand that a contractor is required by law to
be licensed in Florida and to list his or her license numbers on permits and contracts.
4. 1 understand that I may build or improve a one -family or two-family residence or a farm outbuilding. I
may also build or improve a commercial building if the costs do not exceed $75,000. The building or
residence must be for my own use or occupancy. It may not be built or substantially improved for sale or
lease. If a building or residence that I have built or substantially improved myself is sold or leased within 1
year after the construction is complete, the law will presume that I built or substantially improved it for
sale or lease, which violates the exemption.
5. 1 understand that, as the owner -builder, I must provide direct, onsite supervision of the construction.
6. 1 understand that I may not hire an unlicensed person to act as my contractor or to supervise persons
working on my building or residence. It is my responsibility to ensure that the persons whom I employ have
the licenses required by law and by county or municipal ordinance.
7. 1 understand that it is a frequent practice of unlicensed persons to have the property owner obtain an
owner -builder permit that erroneously implies that the property owner is providing his or her own labor
and materials. I, as an owner -builder, may be held liable and subjected to serious financial risk for any
injuries sustained by an unlicensed person or his or her employees while working on my property. My
homeowner's insurance may not provide coverage for those injuries. I am willfully acting as an owner -
builder and am aware of the limits of my insurance coverage for injuries to workers on my property.
8. 1 understand that I may not delegate the responsibility for supervising work to a licensed contractor
who is not licensed to perform the work being done. Any person working on my building who is not licensed
must work under my direct supervision and must be employed by me, which means that I must comply with
laws requiring the withholding of federal income tax and social security contributions under the Federal
Insurance Contributions Act (FICA) and must provide workers' compensation for the employee. I understand
that my failure to follow these laws may subject me to serious financial risk.
9. 1 agree that, as the party legally and financially responsible for this proposed construction activity, I
will abide by all applicable laws and requirements that govern owner -builders as well as employers. I also
understand that the construction must comply with all applicable laws, ordinances, building codes, and
zoning regulations.
10. 1 understand that I may obtain more information regarding my obligations as an employer from the
Internal Revenue Service, the United States Small Business Administration, the Florida Department of
Financial Services, and the Florida Department of Revenue. I also understand that I may contact the Florida
Construction Industry Licensing Board at (telephone number) or (Internet website address) for more
information about licensed contractors.
11. 1 am aware of, and consent to, an owner -builder building permit applied for in my name and
understand that I am the party legally and financially responsible for the proposed construction activity at
the following address: (address of property) .
12. 1 agree to notify (issuer of disclosure statements) immediately of any additions, deletions, or changes
to any of the information that I have provided on this disclosure.
Licensed contractors are regulated by laws designed to protect the public. If you contract with a person
who does not have a license, the Construction Industry Licensing Board and Department of Business and
Professional Regulation may be unable to assist you with any financial loss that you sustain as a result of a
complaint. Your only remedy against an unlicensed contractor may be in civil court. It is also important for
you to understand that, if an unlicensed contractor or employee of an individual or firm is injured while
working on your property, you may be held liable for damages. If you obtain an owner -builder permit and
wish to hire a licensed contractor, you will be responsible for verifying whether the contractor is properly
licensed and the status of the contractor's workers' compensation coverage.
Before a building permit can be issued, this disclosure statement must be completed and signed by the
property owner and returned to the local permitting agency responsible for issuing the permit. A copy of
the property owner's driver license, the notarized signature of the property owner, or other type of
verification acceptable to the local permitting agency is required when the permit is issued.
Signature: (signature of property owner) .
Date: (date) ."
Sewer laterals require excavation allowing the burial of the new piping, connection s made at the house
and the street, the installation of back flow prevention devices and finally, the replacement of excavation
materials and landscaping, abandonment of the original septic system and providing the necessary
documentation. It can be an extensive process involving various skills and intensive physical labor which
many o/b's are not capable of. The constraints of Statutes are not designed to prevent competent o/b's,
but to protect people from unlicensed, rogue contractors, as well as themselves.
Respectfully submitted,
Jerome A. Smith, Jr., C.B.O.
Monroe County Building Official
Statutes & Constitution :View Statutes: Online Sunshine
Page 1 of 6
Select Year: 2011 Go E
The 2011 Florida Statutes
Title XXXII Chapter 489 View Entire Chapter
REGULATION OF PROFESSIONS AND OCCUPATIONS CONTRACTING
489.103 Exemptions. —This part does not apply to:
(1) Contractors in work on bridges, roads, streets, highways, or railroads, and services incidental
thereto. The board, in agreement with the Department of Transportation, shall, by rule, define
"services incidental thereto" for the purposes of this subsection only.
(2) Any employee of a certificateholder or registrant who is acting within the scope of the license
held by that certificateholder or registrant and with the knowledge and permission of the licenseholder.
However:
(a) If the employer is not a certificateholder or registrant in that type of contracting, and the
employee performs any of the following, the employee is not exempt:
1. Holds himself or herself or his or her employer out to be licensed or qualified by a licensee;
2. Leads the consumer to believe that the employee has an ownership or management interest in
the company; or
3. Performs any of the acts which constitute contracting.
(b) The legislative intent of this subsection is to place equal responsibility on the unlicensed
business and its employees for the protection of the consumers in contracting transactions.
For the purpose of this part, "employee" is defined as a person who receives compensation from and is
under the supervision and control of an employer who regularly deducts the F.I.C.A. and withholding tax
and provides workers' compensation, all as prescribed by law.
(3) An authorized employee of the United States, this state, or any municipality, county, irrigation
district, reclamation district, or any other municipal or political subdivision, except school boards, state
university boards of trustees, and community college boards of trustees, unless for the purpose of
performing routine maintenance or repair or construction not exceeding $200,000 to existing
installations, if the employee does not hold himself or herself out for hire or otherwise engage in
contracting except in accordance with his or her employment. If the construction, remodeling, or
improvement exceeds $200,000, school boards, state university boards of trustees, and community
college boards of trustees shall not divide the project into separate components for the purpose of
evading this section.
(4) An officer appointed by a court when he or she is acting within the scope of his or her office as
defined by law or court order. When construction projects which were not underway at the time of
appointment of the officer are undertaken, the officer shall employ or contract with a licensee.
(5) Public utilities, including special gas districts as defined in chapter 189, telecommunications
companies as defined in s. 364.02(13), and natural gas transmission companies as defined in s. 368.103
(4), on construction, maintenance, and development work performed by their employees, which work,
including, but not limited to, work on bridges, roads, streets, highways, or railroads, is incidental to
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their business. The board shall define, by rule, the term "incidental to their business" for purposes of
this subsection.
(6) The sale or installation of any finished products, materials, or articles of merchandise that are
not fabricated into and do not become a permanent fixed part of the structure, such as awnings.
However, this subsection does not exempt in -ground spas and swimming pools that involve excavation,
plumbing, chemicals, or wiring of any appliance without a factory -installed electrical cord and plug. This
subsection does not limit the exemptions provided in subsection (7).
(7) Owners of property when acting as their own contractor and providing direct, onsite supervision
themselves of all work not performed by licensed contractors:
(a) When building or improving farm outbuildings or one -family or two-family residences on such
property for the occupancy or use of such owners and not offered for sale or lease, or building or
improving commercial buildings, at a cost not to exceed $75,000, on such property for the occupancy or
use of such owners and not offered for sale or lease. In an action brought under this part, proof of the
sale or lease, or offering for sale or lease, of any such structure by the owner -builder within 1 year after
completion of same creates a presumption that the construction was undertaken for purposes of sale or
lease.
(b) When repairing or replacing wood shakes or asphalt or fiberglass shingles on one -family, two-
family, or three-family residences for the occupancy or use of such owner or tenant of the owner and
not offered for sale within 1 year after completion of the work and when the property has been
damaged by natural causes from an event recognized as an emergency situation designated by executive
order issued by the Governor declaring the existence of a state of emergency as a result and
consequence of a serious threat posed to the public health, safety, and property in this state.
This subsection does not exempt any person who is employed by or has a contract with such owner and
who acts in the capacity of a contractor. The owner may not delegate the owner's responsibility to
directly supervise all work to any other person unless that person is registered or certified under this
part and the work being performed is within the scope of that person's license. For the purposes of this
subsection, the term "owners of property" includes the owner of a mobile home situated on a leased
lot. To qualify for exemption under this subsection, an owner must personally appear and sign the
building permit application and must satisfy local permitting agency requirements, if any, proving that
the owner has a complete understanding of the owner's obligations under the law as specified in the
disclosure statement in this section. If any person violates the requirements of this subsection, the local
permitting agency shall withhold final approval, revoke the permit, or pursue any action or remedy for
unlicensed activity against the owner and any person performing work that requires licensure under the
permit issued. The local permitting agency shall provide the person with a disclosure statement in
substantially the following form:
DISCLOSURE STATEMENT
1. 1 understand that state law requires construction to be done by a licensed contractor and have
applied for an owner -builder permit under an exemption from the law. The exemption specifies that
I, as the owner of the property listed, may act as my own contractor with certain restrictions even
though I do not have a license.
2. 1 understand that building permits are not required to be signed by a property owner unless he
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or she is responsible for the construction and is not hiring a licensed contractor to assume
responsibility.
3. 1 understand that, as an owner -builder, I am the responsible party of record on a permit. I
understand that I may protect myself from potential financial risk by hiring a licensed contractor
and having the permit filed in his or her name instead of my own name. I also understand that a
contractor is required by law to be licensed in Florida and to list his or her license numbers on
permits and contracts.
4. 1 understand that I may build or improve a one -family or two-family residence or a farm
outbuilding. I may also build or improve a commercial building if the costs do not exceed $75,000.
The building or residence must be for my own use or occupancy. It may not be built or substantially
improved for sale or lease. If a building or residence that I have built or substantially improved
myself is sold or leased within 1 year after the construction is complete, the law will presume that I
built or substantially improved it for sale or lease, which violates the exemption.
5. 1 understand that, as the owner -builder, I must provide direct, onsite supervision of the
construction.
6. 1 understand that I may not hire an unlicensed person to act as my contractor or to supervise
persons working on my building or residence. It is my responsibility to ensure that the persons whom
I employ have the licenses required by law and by county or municipal ordinance.
7. 1 understand that it is a frequent practice of unlicensed persons to have the property owner
obtain an owner -builder permit that erroneously implies that the property owner is providing his or
her own labor and materials. I, as an owner -builder, may be held liable and subjected to serious
financial risk for any injuries sustained by an unlicensed person or his or her employees while
working on my property. My homeowner's insurance may not provide coverage for those injuries. I
am willfully acting as an owner -builder and am aware of the limits of my insurance coverage for
injuries to workers on my property.
8. 1 understand that I may not delegate the responsibility for supervising work to a licensed
contractor who is not licensed to perform the work being done. Any person working on my building
who is not licensed must work under my direct supervision and must be employed by me, which
means that I must comply with laws requiring the withholding of federal income tax and social
security contributions under the Federal Insurance Contributions Act (FICA) and must provide
workers' compensation for the employee. I understand that my failure to follow these laws may
subject me to serious financial risk.
9. 1 agree that, as the party legally and financially responsible for this proposed construction
activity, I will abide by all applicable laws and requirements that govern owner -builders as well as
employers. I also understand that the construction must comply with all applicable laws,
ordinances, building codes, and zoning regulations.
10. 1 understand that I may obtain more information regarding my obligations as an employer from
the Internal Revenue Service, the United States Small Business Administration, the Florida
Department of Financial Services, and the Florida Department of Revenue. I also understand that I
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may contact the Florida Construction Industry Licensing Board at ,iteleohone number3 or flntemetwehsite
address for more information about licensed contractors.
11. 1 am aware of, and consent to, an owner -builder building permit applied for in my name and
understand that I am the party legally and financially responsible for the proposed construction
activity at the following address: (address of prooertvl
12. 1 agree to notify (issuer of disclosure statements) immediately of any additions, deletions, or
changes to any of the information that I have provided on this disclosure.
Licensed contractors are regulated by laws designed to protect the public. If you contract with a
person who does not have a license, the Construction Industry Licensing Board and Department of
Business and Professional Regulation may be unable to assist you with any financial loss that you
sustain as a result of a complaint. Your only remedy against an unlicensed contractor may be in civil
court. It is also important for you to understand that, if an unlicensed contractor or employee of an
individual or firm is injured while working on your property, you may be held liable for damages. If
you obtain an owner -builder permit and wish to hire a licensed contractor, you will be responsible
for verifying whether the contractor is properly licensed and the status of the contractor's workers'
compensation coverage.
Before a building permit can be issued, this disclosure statement must be completed and signed by
the property owner and returned to the local permitting agency responsible for issuing the permit.
A copy of the property owner's driver license, the notarized signature of the property owner, or
other type of verification acceptable to the local permitting agency is required when the permit is
issued.
Signature: (signature of pro2tMj owned
Date: date
(8) Any construction, alteration, improvement, or repair carried on within the limits of any site the
title to which is in the United States or with respect to which federal law supersedes this part.
(9) Any work or operation of a casual, minor, or inconsequential nature in which the aggregate
contract price for labor, materials, and all other items is less than $1,000, but this exemption does not
apply:
(a) If the construction, repair, remodeling, or improvement is a part of a larger or major operation,
whether undertaken by the same or a different contractor, or in which a division of the operation is
made in contracts of amounts less than $1,000 for the purpose of evading this part or otherwise.
(b) To a person who advertises that he or she is a contractor or otherwise represents that he or she
is qualified to engage in contracting.
(10)(a) Any construction or operation incidental to the construction or repair of irrigation and
drainage ditches;
(b) Regularly constituted irrigation districts or reclamation districts; or
(c) Clearing or other work on the land in rural districts for fire prevention purposes or otherwise
except when performed by a licensee.
(11) A registered architect or engineer acting within the scope of his or her practice or any person
exempted by the law regulating architects and engineers, including persons doing design work as
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specified in s. 481.229(1)(b); provided, however, that an architect or engineer shall not act as a
contractor unless properly licensed under this chapter.
(12) Any person who only furnishes materials or supplies without fabricating them into, or consuming
them in the performance of, the work of the contractor.
(13) Any person who is licensed pursuant to chapter 527 when such person is performing the work
authorized by such license.
(14) Any person who sells, services, or installs heating or air-conditioning units which have a
capacity no greater than 3 tons or 36,000 Btu, which have no ducts, and which have a factory -installed
electrical cord and plug.
(15) The installation and maintenance of water conditioning units for domestic, commercial, or
industrial purposes by operators of water conditioning services. No municipality or county may adopt an
ordinance, rule, or regulation which requires such an operator to become licensed, certified, or
registered as a plumber or which otherwise prevents the installation and maintenance of such water
conditioning units by an operator.
(16) An architect or landscape architect licensed pursuant to chapter 481 or an engineer licensed
pursuant to chapter 471 who offers or renders design -build services which may require the services of a
contractor certified or registered pursuant to the provisions of this chapter, as long as the contractor
services to be performed under the terms of the design -build contract are offered and rendered by a
certified or registered general contractor in accordance with this chapter.
(17) Contracting for repair, maintenance, remodeling, or improvement by any person licensed under
part I of chapter 475 while acting as the owner's agent pursuant to that license, where all work
requiring a contractor is performed by a contractor who has a current, valid certificate or registration
issued under this part to perform such work, and where the aggregate contract for labor, materials, and
all other items is less than $5,000; however, this exemption does not apply:
(a) If the maintenance, repair, remodeling, or improvement is a part of a larger or major operation,
whether undertaken by the same or a different contractor, or in which a division of the operation is
made in contracts of amounts less than $5,000 for the purpose of evading this part or otherwise.
(b) To a person who advertises that he or she is qualified to engage in contracting.
(18) Any one -family, two-family, or three-family residence constructed or rehabilitated by Habitat
for Humanity International, Inc., or its local affiliates. Habitat for Humanity International, Inc., or its
local affiliates, must:
(a) Obtain all necessary building permits.
(b) Obtain all required building code inspections.
(c) Provide for supervision of all work by an individual with construction experience.
(19) A disaster recovery mitigation organization or a not -for -profit organization repairing or
replacing a one -family, two-family, or three-family residence that has been impacted by a disaster when
such organization:
(a) Is using volunteer labor to assist the owner of such residence in mitigating unsafe living
conditions at the residence;
(b) Is not holding itself out to be a contractor;
(c) Obtains all required building permits;
(d) Obtains all required building code inspections; and
(e) Provides for the supervision of all work by an individual with construction experience.
(20) The sale, delivery, assembly, or tie -down of prefabricated portable sheds that are not more
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than 250 square feet in interior size and are not intended for use as a residence or as living quarters.
This exemption may not be construed to interfere with the Florida Building Code or any applicable local
technical amendment to the Florida Building Code, local licensure requirements, or other local
ordinance provisions.
(21) The sale, delivery, assembly, or tie -down of lawn storage buildings and storage buildings not
exceeding 400 square feet and bearing the insignia of approval from the department showing
compliance with the Florida Building Code.
(22) A person licensed pursuant to s. 633.061(1)(d) or (3)(b) performing work authorized by such
license.
History.-ss. 11, 17, ch. 79-200; ss. 2, 3, ch. 81-318; s. 1, ch. 84-160; s. 1, ch. 87-235; ss. 2, 20, 21, ch. 88-156; s. 3, ch.
89-115; s. 69, ch. 89-162; s. 1, ch. 89-343; s. 29, ch. 89-374; s. 38, ch. 90-228; ss. 34, 68, ch. 91-137; s. 4, ch. 91-429; s. 7,
ch. 92-55; s. 1, ch. 93-154; s. 1, ch. 93-166; s. 255, ch. 94-119; s. 4, ch. 96-298; s. 73, ch. 96-388; s. 1125, ch. 97-103; s. 39,
ch. 98-250; s. 19, ch. 98-287; s. 22, ch. 98-419; s. 39, ch. 2000-141; s. 34, ch. 2000-154; s. 30, ch. 2000-372; s. 34, ch. 2001-
186; s. 3, ch. 2001-372; s. 26, ch. 2003-32; s. 5, ch. 2005-30; s. 26, ch. 2005-132; s. 43, ch. 2005-147; s. 1, ch. 2006-283; s.
56, ch. 2007-217; s. 25, ch. 2009-195; s. 26, ch. 2010-176; s. 61, ch. 2011-36; s. 37, ch. 2011-64; s. 404, ch. 2011-142; s. 13,
ch. 2011-222.
Copyright ® 1995-2012 The Florida Legislature • Privacy Statement • Contact Us
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