I have a design company and I would like to hire my own contractors to do a construction project. I am not the home owner but they have hired me to do the project management.
Can I subcontract the work out or do I need a special license? Can I have the owner simply pay me and I will pay the contractors?
It's a little unusual, as you aren't the owner, but you can act as the general contractor and hire the sub-trades.I would be careful though because that puts you in charge but you'll also be responsible for whatever may go wrong. If you haven't done it before, consider this: you have everything lined up, ready to go (plumbers, electricians, drywallers, painters, etc.) and you find out that the foundations people can't do the job. What do you do? Most trades are busy so finding a replacement on short notice is next to impossible. Do you still have to pay your other trades people or can you re-schedule them? And the list goes on. Be very careful my friend.
Why can't the owner pay all the contractors, including one for your work? Then the onus is on them.
If you are going to open a company to legitimize your talents, you will have to consider the tax and safety considerations, as well as being responsible for deducting tax and other deductions from the paychecks of those who do not have their own company and insurance.
Licensing is a local matter, so see your city hall regarding that, as there are building permits and inspections possible, and other legal requirements you may have to contend with.
BIG ONE >>> You will also need to have liability insurance too, or have them sign a waiver(not professional). Many costs are involved, but it can be worthwhile if you have a steady job list, and a passion for it!
You can act as the Project Manager for any project. Make sure you have a contract with the owner and that the contract states all subcontractors to be paid by the owner. Also set up a subcontract agreement with each sub trade and the names listed are between the owner and the subcontractor. Your job should be to coordinate trades, call inspections, quality control..etc. Most project management companies charge a commission based on cost of construction.
Best of luck,
Red Dove Developments Ltd.
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