Ask the Remodeler: DIY vs. hiring a licensed general contractor

We had a reader question why they need to hire a licensed contractor to do work when they can pull a permit and act as the general contractor themselves.

It’s a good question because a homeowner can do that if they choose. All cities and towns have a provision for a homeowner pulling the permit vs. a registered and licensed contractor. I do not have any numbers for how many homeowners go it on their own. Below are a few thoughts for anyone debating the right approach.

Permitting: While it is true that a homeowner can pull their own permit, they will still have to abide by all zoning, safety, and building codes. This is a very important point that some people might miss. Most homeowners don’t have the knowledge about what is required to even file for the permit. Building department personnel can help navigate the process, but since most permitting is now done online, not knowing what to include in the permit application can slow things down considerably.

One of the more difficult aspects of pulling a permit is dealing with local zoning ordinances, and nothing slows the process down more than a misunderstanding of requirements. If an application is flagged by the local zoning board, then the plans/project will need to be changed to comply with regulations. Otherwise, you will need to file for a zoning variance and go before the board to explain why you need relief from the particular ordinance. This is a very long, drawn-out process with no guarantee of success. If at all possible, best to work within the zoning guidelines set by your city or town.

Historical requirements: Another potential obstacle that can slow things down is the need to conform to local historical districts. Issues with a historical commission will only happen in certain parts of a city or town, and so it is not nearly as common as zoning problems. Historical commissions can dictate exterior issues on a house, such as doors and windows used, siding, roofing, and trim details. Some can even dictate the color of the house.

The process of dealing with a historical commission is similar in that you need to review the project with department staff. If the changes are significant, you may need to schedule a hearing before the board. This will also add significant time to the process.

Building codes: Once a homeowner has secured the building permit, they will still need to abide by the state building codes for all the various phases of the work. The presumption would be that an owner who is acting as their own general contractor would hire subcontractors who know and abide by building codes. That does not always happen, and the owner is the one responsible for getting the project back into compliance after failed inspections.

The skilled trades such as electricians, plumbers, and HVAC contractors all have to pull their own permits in addition to the building permits, and that work has to be inspected as well. Navigating all these can be tricky business for a homeowner overseeing this on their own.

One final but very important issue with an owner pulling their own permit: If you do not hire a contractor who is registered with the state under the Home Improvement Contractor Program, HIC, you do not have access to the Arbitration and Guaranty Fund, which compensates homeowners up to $25,000 for unpaid judgments against contractors through state-sponsored arbitration. All licensed contractors filing for a permit have to be registered and pay into HIC.

An owner pulling their own permit waives access to any of the above rights. An owner thinking of pulling their own permit really needs to do their homework and make sure they are ready to take on the risks and benefits.

Registered contractors: Most people know to get references from a contractor’s past clients, which will tend to always be positive. We recommend taking it a step further and asking to see a project in process, ideally if the current client is available. This helps paint a picture of how well a project is run and managed.

We belong to several of the local building and remodeling trade associations. This is a group of already vetted members from every corner of the building industry, from design to construction to legal and insurance professionals. We strongly recommend hiring from these associations if possible, since they are all held to a higher standard.

Contracts and insurance: I did a radio show recently, and one of the subjects that I talked about surprised a lot of people: Any work over $1,000 requires a written contract between the owner and the contractor in Massachusetts. The laws defining a written contract are pretty extensive, and are there to protect owners. Mass.gov is a great resource to see these requirements.

Another topic was insurance. You want to make sure that any contractor you hire has both liability and workers’ compensation insurance. The amount of the liability insurance should be in line with the value of your home should something terrible happen. The workers’ compensation policy is required, and both should be up to date. We always recommend people be put in touch with the contractor’s insurance broker and get the insurance binders directly from them. Do not accept just a copy of the binder provided by the contractor.

There’s quite a bit to consider, so be sure to ask questions. Whether or not you are working with a professional quality contractor, knowledge is always your best ally.

Mark Philben is the project development manager at Charlie Allen Renovations in Cambridge. Send your questions to [email protected].

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