SB 1077 - new laws for owner builders

[DrWho]

thanks all for your comments. i plan on paying guys cash for smaller jobs, for the big stuff i most likely will use licensed guys. ive talked to alot of people about this and frankly this wont change much in puna. there are way too many people looking for work and nobody is going to turn down a job simply because you dont have insurance

the doc is in...

[DanielP]

If they get injured, you are on the hook. It's a risk/benefit thing.

[hawaiian]

what if there independent contractors? with there own liability insurance?(now iam not talking about lic.contractors).

[kalakoa]

Get real, people: this is America, where anyone can sue for anything at any time. The best you can do for yourself is to keep as many layers of separation as you can.

Example: even if the contractor has "their own" liability insurance (personally, through their agency, whatever) you should get your own coverage in addition.

The best-case scenario for you is to have two (or more) insurance companies fighting about who will pay for it, while you sit comfortably with popcorn and/or s'mores.

It should go without saying that the best-case scenario is everyone involved completes the project without injury -- and prevention is usually cheaper than any insurance claim.

[DanielP]

It's the workman's Comp to be concerned about.
There is a policy called a "course of construction" which will cover the homeowner against things such as fire and liability, but there is no way around the legal need for comp on employees. No such thing as unlicensed independent contractors in the building trades.

[hawaiian]

so a handyman who has his own liability insurance who sign's that 1099 form or what ever you call that form . that states he is a independent contractor is wrong? not questioning you.just trying to learn this. cause I have seen this myself on maui.there are drain cleaners(companies that unblock drains)they are not plumbers but my wife's family uses them to do work like that and they my wife's family claims the tax's on them every year.they do light construction but its still construction and most been in business over 16 yrs as independent contactor.and they pay tax's the state know about them. like I said I don't know much about this but I do want to learn. but I no this for a fact there is no such thing as a lic. drain cleaner. is this kind of work I mentioned part of the building trades?

[Seeb]

Unless they are specifically exempted by a law they technically need a plumbing license. According to what the building dept put out a few years ago you need a license to change a faucet washer

[kalakoa]

Sometimes it's just semantics: if you call yourself a "plumber", you better have the license... but if you're a "handyman", and you don't engage in regulated activities (granted, this is difficult considering the broadly-worded statutes), there isn't any licensing for that.

Same thing with "independent" contractors: the IRS litmus test goes beyond "filing a 10-99". If they provide their own tools, and you don't tell them how to do their job, they're probably a "contractor". If you provide office space and micromanagement, they're an "employee" in the eyes of the IRS, regardless of how they're paid.

Last I checked, it becomes "plumbing" when you change the fixtures or move/add the pipe; you have to be an "electrician" to replace an outlet or light switch. Changing the faucet handle or replacing a light bulb is "maintenance".

I would use the "faucet washers" example, but all the modern ones are washerless; it looks like you just install a new one when it starts to leak, and that's probably considered "plumbing". Not even a little ironically, the cheap plastic kitchen sink faucet is $20 at Home Despot, hiring the plumber to install it is probably a 1-hr minimum at $75 or so.

[DrWho]

implementing these things is next to impossible.

the doc is in...

[DanielP]

It can be a pain, but if you get good references for your licensed electrician and plumber, and an engineer to stamp your plans and a qualified local draftsman to draw your plans, it is merely annoying.

If you think that is next to impossible, try to get a Contractor's license.