Owner Builder Instruction

When you declare yourself as owner-builder on your permit for any type of construction, you are acting as your own general contractor and are taking liability for all work done. That means you can:

•          do all the work yourself
•          utilize the help of family, friends and neighbors, as long as they are not paid a wage or a salary and you take all liability for their work
•          utilize employees of yours for whom you have worker’s compensation coverage and are withholding payroll taxes for
•          hire licensed sub-contractors to do all of the work, or any part of the work

The Division of Occupational and Professional Licensing (DOPL) regulates licensing laws for the State and closely monitors all construction projects with an owner-builder declaration on the building permit. You will be required to sign and the Owner-Builder Certification and Agreement to Comply form. Make sure you read and understand the form. Some of the restrictions you agree to are:

•          You are allowed to build only one (1) house in a calendar year
•          You are limited to build only three (3) houses in five years
•          You must actually live in the house for ‘a reasonable amount of time’

Please see the following link for the Utah State Laws regulating Owner-Builder. Once you open this link, scroll down to 58-55-305 Exemptions from licensure (http://le.utah.gov/xcode/Title58/Chapter55/58-55.html).

If you have further question regarding the owner-builder declaration or State laws governing contractors, contact DOPL at (801)530-6628, toll free at (866)275-3675 or www.dopl.utah.gov. Note: It is illegal to declare owner-builder on any commercial project.