Legal Question in Construction Law in California

Re: Client provides payroll

Yes. It's perfectly legal and, in some ways, advantageous to you as a contractor. But there are disadvantages, too. You have probably heard of construction managers that are hired for large commercial jobs. You will be doing approximately the same thing. While you will likely be saddled with coordinating and scheduling the subs, they will contract directly with the owner. As long as the owner has workers compensation insurance and pays the payroll taxes, everything's fine. The advantage to you is that you are much less likely to be responsible for work performed by subs and laborers you don't hire if things go wrong down the road. The downside is that you'll have to work with subs you're not familiar with. This can obviously create some problems. You'll also find that coordinating with an owner like this can create problems. I could go on at length about the potential logistical problems, as opposed to legal problems. Suffice to say that I suggest frequent and on-going communications with the owner or things will start slipping through the cracks. Don't forget to charge for your time to supervise his employees and subs.

Re: Client provides payroll

Yes this is legal. You can work as a Contruction Manager, retained by the Owner. It would be best to have a written document spelling this out. A modified verson of the AIA contract might work here, but most homeowners may not understand its complexities.,I would also have the Owner obtain a certificate naming you as additional insured on the liablity and Workers Comp policies. There arre other issues that you would want to cover in a management contract. and there's nothing wrong with asking the employees to sign an acknowledgment they work only for the Owner and not you.