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Scott Bogue
  • Real Estate Consultant
  • San Antonio
7
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12
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Need to hire a licensed professional to pull permits

Scott Bogue
  • Real Estate Consultant
  • San Antonio
Posted

I currently have two crews who perform my flips but non of them are licensed. I am looking to hire a licensed professional to perform an inspection in that particular area of their expertise to determine what work needs to be done but not actually do the work. I would like them to then inspect the work once completed. Need them to pull city permits as well. Is this a thing?? Do people specialize in this type of inspection work??

  • Scott Bogue
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    Stuart Udis
    #3 All Forums Contributor
    • Attorney
    • Philadelphia
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    Stuart Udis
    #3 All Forums Contributor
    • Attorney
    • Philadelphia
    Replied

    Every municpaility is different but common to have a GC be the general permit holder and then separate permits for each MEP trade. Can't say if this is the case in San Antonio but as others have suggested you are really playing with fire with your current set up. In the event there is a claim, I assume you have general liability and builders risk coverage? Will these carriers even pick up coverage knowing you are not performing the work with proper permitting and licensing? Also, if these are W2 employees who are performing the work for you, by the time pay workers compensation,  benefits etc. is this really a more cost effective model considering the added risks as opposed to using subcontractors who are properly licensed?

    Even if you were to find the unicorn who will be the licensed permit holder and allow your employees to perform the work,  you will still be held responsible from a liability perspective because their insurance carriers certainly won't pick up coverage so what does this really solve given you seem to already be operating without licensing in your current model?

    Also, if taking these short cuts  is the only way to make these projects pencil then its a failed business model and you should consider a new investment strategy. I don't know how GC requirements work where you live, but perhaps rather than pay all of these employees on your current payroll you would be better off paying someone who has the credentials to obtain the GC license and then sub out the rest of the work to those who can pull the sub trade permits?

  • Stuart Udis
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