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Updated about 2 years ago on . Most recent reply

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56
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13
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Neel Patel
  • Rental Property Investor
  • Hazel Green, AL
13
Votes |
56
Posts

How to set up the terms when someone is acting as GC for your own project?

Neel Patel
  • Rental Property Investor
  • Hazel Green, AL
Posted

We are planning on constructing a duplex and taking on the role of Project Manager. We have a GC who would sign on as the general contractor on the building permit but then allow us to oversee the day-to-day responsibilities and hire my own subcontractors. In return for leveraging their license, we've agreed to pay the GC a fixed fee. We're interested in connecting with anyone who has navigated a similar scenario to share their insights.


What measures can we take to ensure the GC doesn't withdraw its license during the construction of the duplex? 

Could you highlight potential challenges and recommend provisions to include in the contract?

Any other advice would be greatly appreciated! 

Most Popular Reply

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12,268
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14,491
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Bruce Woodruff
#1 Contractors Contributor
  • Contractor/Investor/Consultant
  • West Valley Phoenix
14,491
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12,268
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Bruce Woodruff
#1 Contractors Contributor
  • Contractor/Investor/Consultant
  • West Valley Phoenix
Replied
Quote from @Sean Wilson:

@Neel Patel

As someone who carries a GC license in 8 states, including AL, I can tell you that allowing someone to use your license is one of the fastest ways to receive a board summons and potentially lose your license. 

I wasn't sure that he was going to 'use' the GC's license or had some other plan....but it certainly did sound squirrelly. And you are right, allowing someone to 'use' your license is the quickest way to lose it.....

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