Hello everyone,
The past 5 years or so I have purchased, renovated 7 properties in south western Ontario and continue to do so, majority of them are income properties a couple we converted into multi unit properties others where flips including additions and second stories. All projects where done properly with permits, ESA and inspections. With all these personal projects over the yrs I have a good amount of contacts for electricians, plumbers, hvac, roofers, framers etc. All licensed guys for trades.
We are still continue to buy properties for additional income, flips etc however I personally enjoy doing these type of projects and was thinking of starting a business/company for residential projects small big new or Reno's etc however I don't plan to do the work my self but sub out basically everything to the contacts I have gathered. I'd do all coordination, planning, designing etc but sub out the tasks to specific licensed individuals.
I have read lots trying figure this out And understand that I need liability insurance but if I'm subbing out everything do I need anything else?
Thanks
Depending on the municipality or region you may need to purchase a license through them.
Usually between $80-$150 the license is just them ensuring you have a certain level of liability insurance and a business license. -more of a money grab but you can run into issue if there are complaints to the city and you dont have one.
Ensuring WSIB clearances with your Subs. If they are working for you they are required to pocess wsib, I wouldn't always trust their word. It is something that I've seen subs fall behind on.
If you are putting in plans made by yourself for a building permit those plans would need to be created by a credited designer. (not sure if you you have those credentials)
Best of luck!
Regards,
Tom
Hey Nick,
That's a great idea. You need to always be close to ground zero in this industry. Having renovated and flipped your own houses is great experience.
Sunny
Lagman Construction and Renovations
Thanks,
So other then Liability insurance, business number and ensuring subs have wsib, I can start a business? seems fairly straight forward... I was reading online about a general contractor license.. this isn't required?
I went to college when i was younger for Civil Engineering Technology and have earned my C.E.T designation but my work has been civil related mainly.
Thanks again for the info so far!
Hello Nick,
Just renewed my commercial liability insurance this month, and the insurance providers are definitely tightening up their requirements.
All subs to provide proof of WSIB plus liability insurance of their own for $2 million plus name you as additionally insured, in writing to your broker. Hot work (welding and torch down roof membranes) not to exceed 20% of total revenue, plus many other limitation while performing the work. All flat roof contractors would be required to quote you on the same basis, so no favoritism, but not all roofers will be willing to follow the procedures.
No underpinning.
In addition to good insurance, you will need a VERY good contract, reviewed by a competent litigation lawyer. Mine has a cancellation clause that states that the client is liable for a cancellation fee of up to 25% of the work not performed, at my sole discretion.
This discourages client from cancelling for frivolous reasons.
When laying out the cash flow and milestones for contract payments, try to organize it so that you always have a bit of their money in your pocket.
All the best,
Andrew Parker
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