Rejuvenation Projects Blog

Should You Be Your Own Contractor?

Posted in 1915 Bungalow Remodel by abodepdx on December 22, 2009

One thing we pondered was whether I should also act as the general contractor and try to save on fees. With my knowledge of the industry and the depressed state of the economy, this was an especially attractive idea. However, I was uneasy with the thought of the multiple roles I would then have in the project. Being the contractor, project manager, architect and home-owner in addition to roles in my personal life seemed too much to juggle. In the end, we decided to hire a general contractor, or GC. Below are some reasons why you too should consider hiring a general contractor rather than taking on the job yourself.

new water service to street

1. Warranty. I wanted the option of being able to call someone if anything went wrong during or after construction. It put my mind at ease to know that the GC would be there whatever the issue, whenever it might occur and do whatever it takes to remedy the situation.

taller basement windows

2. Language barrier. Like any profession, the building industry has its own vocabulary, communication method and process. Unless you are knowledgeable of the field, understand the construction process and what the specific project involves, and know who to and how to and when to communicate with the various subcontractors, vendors, distributors and city officials, you will be in over your head.

pour stair footing

3. Major time-commitment. There are a lot of behind-the-scenes organization, paperwork and phone calls that need to be made before and during a project. If you are unfamiliar with the construction industry, managing the project will become your full-time job as there will be a steep learning curve. If you are already employed, it will be very difficult to do both jobs well. Passing on the duties of GC simplified my life and allowed me to concentrate on my roles as architect and homeowner.

pour egress wells

4. Headaches. In theory, scheduling and project coordination sound like relatively easy tasks, but not so. There are many trades that need to be involved in a moderately-sized project, and they all need to be scheduled, timed, organized, synchronized and managed. Inspectors and subcontractors go on vacation or may be unavailable at a desired time. Frustrations occur when materials get back-ordered, discontinued, shipped incorrectly, arrive damaged or incomplete, have special handling requirements or need to be picked-up. Other duties that I did not want to take on were checking pricing, verifying invoices and managing the payments. These were better left to the GC.

siding repair

5. Established relationship with subcontractors. It takes a GC several years to develop and maintain a circle of trusted tradesmen. He will know several professionals in each trade and will be able to best match the subcontractor to the job and client. When hiring a GC, the homeowner benefits from the GC’s knowledge of the industry, years of experience and local contacts. But when a homeowner hires a sub himself, there are risks for both parties. For the homeowner, there are potentially higher project costs, longer construction time, sporadic work by subs and having an unknown and untested person work in the home. As the project is just a one-time event, the homeowner is not as important as a GC to a sub because there is no promise of repeat business or multiple jobs. Subs will often charge a little more when dealing directly with a homeowner because of the time needed to educate and manage the homeowner. For the tradesman, there are the risks of not being paid by the homeowner on the agreed upon price or even on time, working for someone who may not have a good understanding of the construction process, and not have a defined scope, schedule, budget or materials list.

rehang window sash weights

6. Insurance. General contractors and their subs are licensed, bonded and insured. As such, they, the homeowner and the project are protected if injury, theft, vandalism or late or nonpayment should occur. These issues are not so straightforward when a homeowner acts as their own GC, and a homeowner’s policy alone does not provide full coverage during construction. Of course you should always verify that a GC is LBI before hiring him. See also Lien Laws.

painting

7. Permit process. Although usually done by the architect, the GC can navigate the plans through permitting on your behalf. He is knowledgeable about the local codes and regulations and can ease homeowners through the process. He also coordinates with the city for all inspections. Although this was not an issue for us, it can be difficult to muddle through for the average DIYer. With the current economic cutbacks, city departments everywhere are operating with a lean staff and wait times are considerable, further adding to the frustration.

8. The go-between. When things are not done right, need to be reworked or just go awry, the GC can soften the blow to the subcontractors or to the homeowner. The GC will be able to look the larger picture and do what’s best for all parties in a professional manner that is more impartial and reasonable.

Remember the GC is your advocate during the construction process. He will act on your behalf to ensure that the project goes smoothly. And that was something in which we were willing to invest.

We can’t wait for the deconstruction to begin. Tune in next time for deconstruction & rough-in plumbing! Whoohoo!

3 Responses

Subscribe to comments with RSS.

  1. [...] are some reason why from someone whose been there: 1. Warranty. I wanted the option of being able to call someone if anything went wrong during or [...]

  2. tiquose said, on January 6, 2010 at 11:49 am

    You are fortunate to know someone you trust that much. In our case, it wouldn’t work. Blizzard Gulch is an organic project, evolving as we go. We’d spend a fortune on change orders if we were saddled with a general contractor (other than ourselves).

  3. abode pdx said, on January 28, 2010 at 8:35 pm

    Yes, we are fortunate that we found someone trustworthy. Many contractors are; just be sure to check out any contractor thoroughly (and his references) before hiring anyone.

    Some contractors are alright with working on an organic project such as yours without charging for every change order. Some contractors don’t even charge for minor change orders because it takes up too much time and energy (and money) to track the little things. Ofcourse major changes in scope would be another matter and should be tracked by both parties. Just tell the contractor about your concerns and ideas during the bid process. He may be willing to work with you.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.