[CLC-Discussion] GC Permit vs Owner Subs and liability

[RPPTL CLC-Discussion]

Good Morning,

Few questions:
Did the GC know that subs were pulling permits under their permit?
If so, are there any documented notices directly from the GC directing the
owner to cease such behavior?
Are there any notices from the GC directing the subcontractors to refrain
from performing any work under the GC license?

I believe some answers to these questions would help with understanding the
‘course of conduct’, and possibly eliminate most of the gray areas with the
owner’s and subcontractor’s expectations.

On Fri, May 19, 2023 at 3:20 PM RPPTL CLC-Discussion <
clc-discussion at lists.flabarrpptl.org> wrote:

> CLC, this issue seems familiar, but I can’t locate an email thread.
>
>
>
> Does anyone have that thread, or any thoughts on the issue below? Thank
> you.
>
>
>
> *Facts: *
>
>
>
>    1. Owner engages General Contractor (“GC”) for commercial construction
>    project.
>    2. GC obtains the necessary Building Permit.
>    3. Owner independently engages “sub” contractors for certain
>    subcontract work (direct privity between Owner and Owner’s Subs – GC not
>    involved.)
>    4. The municipality in which the project is taking place uses a single
>    permit system.
>       1. Subcontractors merely fill out and submit a Subcontractor Job
>       Card, which references the GC’s permit #.
>       2. All work performed by subcontractors takes place under that GC’s
>       permit #.
>
> GC did not authorize those subcontractors engaged by the Owner to work
> under his permit, but, given the municipality’s single permit system, they
> ended up under his permit by default. (No grant of authority or sign off by
> the GC is required.)
>
>    1. Owner’s direct privity contractors produce deficient work within
>    their scope.
>    2. Owner now claims that GC is responsible for the deficient work of
>    Owner’s Contractors because GC obtained building permit.
>
>
>
> *Question:*
>
>
>
> Is a general contractor liable for deficiencies in, or remediation of, the
> work of subcontractors who were engaged by and in direct privity with the
> property owner, if those subcontractors obtained permitting
> <https://www.google.com/maps/search/2959+First+Avenue+North+%0D%0A+St.+Petersburg,+Florida+33713?entry=gmail&source=g>
> under the general contractors permit?  Case law is welcome.
>
>
>
> Thank you.
>
>
>
> Paul J. Kelly
>
> Paul J. Kelly, P.A.
>
> 2959 First Avenue North
> <https://www.google.com/maps/search/2959+First+Avenue+North+%0D%0A+St.+Petersburg,+Florida+33713?entry=gmail&source=g>
>
> St. Petersburg, Florida 33713
> <https://www.google.com/maps/search/2959+First+Avenue+North+%0D%0A+St.+Petersburg,+Florida+33713?entry=gmail&source=g>
>
>
>
> [image: Board Certified Construction Logo]
>
>
>
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-- 
OT Delancy
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