Many home renovation tasks may be tackled with a do-it-yourself method. Homeowners can successfully complete many heavy, complex projects previously reserved only for contractors and specialists, such as floor installation, wall removal, and window replacement, thanks to good information and the availability of new building materials that are friendly to do-it-yourselfers.
Do-it-yourself renovation is not only cost-effective, but it can also be very satisfying when you see the fruits of your work.
Pros & Cons of Being Your Own Contractor
The payoff is the greatest justification for attempting to be your own contractor. After all, contractors are in business to earn money, so adding 20% to 30% to the cost of goods and labor as profit is entirely fair. But is it necessary?
You don’t have to pay anybody that markup if you’re your own general contractor.
However, there are certain disadvantages to being your own contractor. For example, if you are unhappy with the final result, you cannot complain to yourself that the work isn’t up to par and refuse to make the final payment.
That may be the most compelling argument for not being your own contractor. If you hire someone to perform the work for you and anything goes wrong, it is unlikely that it will be your fault, since general contractors are paid to handle issues and complete projects.
When you employ a general contractor, you’re paying for his expertise, ability to foresee difficulties, and, most importantly, his willingness to take ultimate responsibility for the whole project. He’ll also get licenses, schedule work, and resolve conflicts between subcontractors and suppliers.
When Hiring Subcontractors
As your own general contractor, this will be your duty and it’ll be a big one since these are the people that will really renovate your home for you. Carpenters, plumbers, electricians, and other tradesmen are the ones who turn the blueprints into reality. The essential talent for every manager is finding the appropriate people.
Your carpenter will most likely be the most essential player. He’ll be the one to design the framework that will define the spaces. He constructs the structure that will serve as the foundation for electrical wiring, plumbing, vents, phone lines, and insulation. After all of it has been roughed in, he’ll return to cover it with completed surfaces. The carpenter is the most important player to employ initially.
Ask the carpenter for assistance in locating an electrician, plumber, or mason, since he will be your main sub. Also, don’t be too concerned about cronyism here. Most carpenters suggest individuals they like working with, but few would recommend subs who are unfamiliar with their trade. They are aware of the individuals that disrupt the timetable, do a poor job, and cause problems for others. They hate headaches just as much as you do.
Consider Insurance Needs
You’ll need a builder’s risk or fire insurance policy if you’re acting as your own general contractor. Because prices are generally tightly controlled in most jurisdictions, prices vary very little from one company to the next, but check with the insurance agent who handles your homeowner’s policy to find out what documentation is needed and how much it costs.
You’ll want to make sure the insurance goes into effect as soon as the construction supplies arrive or the first worker arrives on the job site, whichever comes first. If you have a construction loan, the bank will almost certainly require that you have a valid insurance binder on hand when the loan closes.
You may then change the insurance back to regular homeowner’s coverage after the work is completed.
Should I Be My Own GC?
Choosing to be your own general contractor is a big step. Don’t allow the prospect of significant financial savings blind you to the risk of difficulties and disagreement. You may be pleased with yourself for handling the whole process alone, but you also need to be sure that you have the time, interpersonal skills, organizational talents, and simple drive to stick with it, even when things go tough.
No construction project is without its ups and downs, setbacks, and disappointments, and this one will be no exception. For many individuals, the markup a general contractor adds to the actual building expenses is a reasonable amount to pay for process management.
There is the possibility for savings, but you must also invest time and effort on your side. You’ll be responsible for coordinating the activities of the substitutes, creating timetables, paying invoices, and a variety of other tasks.
Ask Yourself These Questions
If you can answer yes to each of the following, maybe you are ready to be your own GC. If not, you’re probably better off working with a licensed professional.
Do I Have the Time?
It isn’t a full-time position. During building, you won’t need to put in more than two hours each day. You must, however, be prepared for unexpected events and crises. Is your employment near enough to your house, and do you have enough flexibility in your schedule to make the trip during working hours?
Are You Committed to Seeing the Project Through?
Don’t take on the role of general contractor on the spur of the moment. You’ll very certainly be unable to pass it off to someone else halfway through without losing most (if not all) of the money you were expecting to save.
Do You Have Enough Grit?
You’ll have to work as the manager. That means you’ll have to be harsh with your subs at times. You can’t, however, interfere with their job. It’s a thin line to walk. Do you have the patience, critical distance, and wisdom to allow the professionals to do the job they know how to do better than you; while also knowing when to step in for the betterment of the project and other contractors down the line?
