Getting a GC license as an Owner builder

[David Maldonado]

Hey everyone,

So I applied to test for a GC license in California, but was short on experience. My BA got me 24 months of experience and my owner builder experience only gave me 4 months. As an owner builder, I built 3 ADUs and 1 JADU (subbed out the structure build and I did all the finish work). I did qualify I quit my job last month to focus more on real estate investing, and I want a GC license so I can contract my own builds. I know that I can keep going as an owner builder, but I also want to build new construction commercial properties, as well as having the GC license for credibility when working with other investors in the future. 

I love everything about construction. I first got into construction to save money on labor when I built my first ADU as an owner builder. I enjoyed the hard labor and comradery that I missed from my Navy days working in engineering.

My question is, how do I go about getting more experience on paper without having to commit to an employer/contractor for a long-term position?  Are there any investors on here that got their GC license later on and went on to contract your own builds?

[Bruce Woodruff]

You have to have the required experience. The only work-around is to find a GC that you know well, (and who trusts you) and have them sign off on the experience. YEs, it's cheating, but you won't be the first who has done this.

Side note - I never understood why a college degree counts for S**t towards being a GC. IMO, that is complete BS. People who went to college are generally the absolute worst at construction...left brain/right brain thing.

[Ryan Normand]

Quote from @Bruce Woodruff:

You have to have the required experience. The only work-around is to find a GC that you know well, (and who trusts you) and have them sign off on the experience. YEs, it's cheating, but you won't be the first who has done this.

Side note - I never understood why a college degree counts for S**t towards being a GC. IMO, that is complete BS. People who went to college are generally the absolute worst at construction...left brain/right brain thing.

 Agree with the first part, but not the second. At least in AZ, you can count a 4-year college degree as 24 months of experience, but it has to be construction-related degree (e.g. construction management, CivE, etc.). In addition to that, you still need an additional 24 months of practical construction experience to qualify, which is more than enough time to weed out anyone who can't handle the real-word construction industry. And then on top of that, you still need to pass the trade exam. Not sure what part of that is BS. The process is equally rigorous whether you went to college or not.

Regarding the original post, I suggest linking up with an experienced GC and working under them for 6 months to a year, even if it's just as a part time apprentice. GC's are always looking for extra help so it shouldn't be hard to find one who will hire you. Don't expect to get paid much, though. The real benefits are that you'll learn a lot, grow your network and meet a ton of subcontractors (this is CRITICAL if you want to be a GC), learn the construction process, and (like Bruce said) if the GC likes/trusts you they'll probably sign off on the experience even if you're still a year or two short.

[Bruce Woodruff]

Quote from @Ryan Normand:

Ah, ok...I thought you could get a degree in basket weaving and that counted towards the license quals..... :-)

[Joel Forsythe]

It would be simpler to have an existing GC sign off on your remaining work history as verification. However, it’s not the only way to get the qualification, it allows for Self and Homeowner declarations and documentation to add up experience, its just not as easy as an existing GC stating “he’s good to go”.

Pursuant to Business and Professions Code (BPC) Section 7068, applicants’ experience must be verified by a “qualified and responsible person.” The setting in which the experience was gained plays a role in determining what constitutes a qualified and responsible person and what types of experience documentation may be acceptable.

It goes on to list pretty much anybody related to construction fields, including homeowners you perform work for. Crazy but true.

Here’s a CSLB chart, if you go the individual and homeowner verification route, you’re gonna need a lot of supporting evidence of competence and testimony from who you worked for etc.  From what I remember, they didn’t just rubber stamp these types of applications, they got put in a separate pile.  The contractor supported ones got more grease. 

I dont know if you can link on here, if not I’ll point you to their PDF.
https://www.cslb.ca.gov/Resour...

[Julie Marquez]

@David Maldonado I hope you get your license and find a workaround, it's sounds like your are eager and knowledgable!

It got me thinking about my experiences that would make me a qualified GC.

From Worst to Best:

5. My construction management degree.

4. My project engineer job with huge general contractors (schools, hospitals, etc.).

3. My estimating and project management job with a small local home builder.

2. Building our own ground up duplex properties for rent, and also hands on managing our properties.

1. Spending time as a youth with my dad on his rental properties, years and years of hands on property management as a minor.

[Brian Poppleton]

Hi David

How has it gone getting the GC? I have the same issue, I have been CPA for a while but now(thanks to RE investing) I sold my practice and pursuing construction/RE full time. I see the same value in getting license to be more legit in the eyes of investors, banks, and also I would like to build some ADUs/rentals for others.. The only verified experience I have over the last 10 yrs is 1 owner built ADU. I have few years working under GC but it was more than 10 years ago. One way of making it work would be to partner with GC in a corporation. you can google RMO or RME. Basically they would become shareholder or officer in business until you have the experience documented. They would probably want to be paid. I would love to chat sometime.

Brian 

[Bruce Woodruff]

Quote from @Brian Poppleton:

Hi David

How has it gone getting the GC? I have the same issue, I have been CPA for a while but now(thanks to RE investing) I sold my practice and pursuing construction/RE full time. I see the same value in getting license to be more legit in the eyes of investors, banks, and also I would like to build some ADUs/rentals for others.. The only verified experience I have over the last 10 yrs is 1 owner built ADU. I have few years working under GC but it was more than 10 years ago. One way of making it work would be to partner with GC in a corporation. you can google RMO or RME. Basically they would become shareholder or officer in business until you have the experience documented. They would probably want to be paid. I would love to chat sometime.

Brian 

 Yes, they would definitely want to be paid, and usually a significant amount. I was approached often in California to be an rmo and even though the money offered was quite good, I passed, because of the work required and the liability. The General contractor must spend a certain amount of hours each week on each project that he is being an RMO for, and has liability for any construction errors or defects, even though he actually does not have as much control as he normally would. 

it's really a niche for older retired contractors, it would just be an overwhelming amount of work and potential liability for a younger GC.

[Karen Margrave]

Look on the California State Contractors Board site at the various options. You might be able to find a contractor that will agree to be your qualifier for a fee, etc. Once you have the necessary experience you can get your own license. 

As for the suggestion of getting a contractor to sign off on experience, no legitimate contractor is going to do that, and if they did, and got caught, you'd both be screwed. 

You can be an owner/builder in CA. However; some cities require a contractor to be on the application for permit. Also, lenders usually require a licensed contractor, bond and insurance.