What Is an Owner-Builder Permit?
Chapter 489 of the Florida Statutes regulates construction contracting and licensing requirements to help protect public health and safety. As a general rule, most construction projects require a licensed contractor to perform improvements to real property. Florida law, however, provides limited exemptions to this requirement under Section 489.103, Florida Statutes. One commonly used exemption is known as the owner-builder permit.
An owner-builder permit allows certain property owners to act as their own contractor and provide direct, onsite supervision of construction work that is not performed by licensed contractors. Under Section 489.103(7)(a), Florida Statutes, this exemption applies in limited circumstances, including:
- Building or improving farm outbuildings or one-family or two-family residences for the owner’s own use or occupancy, provided the property is not offered for sale or lease; and
- Building or improving commercial buildings with a total construction cost not exceeding $75,000.
Eligibility and Application Requirements
To qualify for an owner-builder permit, property owners must personally appear and sign the building permit application. They must also satisfy any additional requirements imposed by the local permitting authority, which may include demonstrating an understanding of the legal obligations associated with acting as an owner-builder.
Property owners must affirm that the structure is not being built or improved for sale or lease. If the property is sold or leased within one year after the project is completed, Florida law presumes the project was constructed for sale or lease, which may invalidate the exemption and result in potential penalties.
Project Responsibility and Supervision
By obtaining an owner-builder permit, property owners assume full legal and financial responsibility for the construction project. They may not delegate supervisory responsibilities to an unlicensed contractor. The owner-builder is expected to closely supervise the work and verify that all individuals performing work that requires a license are properly licensed.
All construction must comply with applicable building codes, zoning regulations, ordinances, and other legal requirements. If unlicensed individuals are working on the project, they must be directly supervised by the property owner and treated as employees. This means the owner-builder must comply with federal and state employment laws, including tax withholding obligations under the Federal Insurance Contributions Act and workers’ compensation requirements.
Potential Risks of an Owner-Builder Permit
There are notable risks associated with acting as an owner-builder. Property owners may be exposed to liability for injuries sustained by unlicensed workers or their employees while on the property, and homeowners’ insurance policies may not cover these types of claims. Additionally, once an owner-builder permit is issued, the property owner becomes the legally responsible party for the entire construction project.
Property owners considering an owner-builder permit in Florida may benefit from speaking with a Southwest Florida attorney to review their plans and better understand how the statutory requirements and exemptions apply to their specific situation.
About the Author
Attorney Lenore T. Brakefield is a partner at Woodward, Pires & Lombardo, P.A., with offices in Naples and Marco Island, Florida. A Naples native, she graduated cum laude from the University of Florida Levin College of Law. Her practice includes civil and commercial litigation, construction-related disputes, local government law, code enforcement matters, community association law, real estate law, and contract and transactional matters. She is also a Certified Financial Litigator (CFL™) through the American Academy for Certified Financial Litigators.
