Unexpected Pitfalls of Being Your Own General Contractor

Unexpected Pitfalls of Being Your Own General Contractor

 

I was a general contractor for 20 years building and construction 45+ years. I know what it takes and acting as your own General Contractor is a DIY option which sounds good on the surface. What a great way to save a lot of money on your renovation,  maybe about 10 to 15 percent by replacing the General Contractor. How hard could it be?

Hard!

  1. Here are your responsibilities as your own General Contractor:
  2. managing the details of the renovation project,
  3. securing the required building permits,
  4. hiring, firing and scheduling subcontractors,
  5. ordering building materials & supervising installation,
  6. inspecting the work of subcontractors,
  7. coordinating formal building inspections (with the permit office),
  8. ensuring work is done to code, and
  9. troubleshooting design or logistics issues.
  10. That’s a tall order. It should be clear from the job description that not every homeowner is suited to be a General Contractor.

Acting as your own general contractor works best if you’re:

  1. Highly organized.
  2. Detail-oriented.
  3. Have a clear idea of what you want in your home.

Even if you’re “organized”

  1. You still need to decide if it’s truly worthwhile
  2. The pitfalls may eat up your savings quickly and then some.

Graham Irwin from Remodel Guidance, SFGate

“Don’t do it just to save some money,” “because it’s a lot of work and a lot of research. If you’re not interested in the process, if you don’t want to learn more about construction than you thought you’d ever want to know, then don’t do it.”

 

Ok you’re highly organized,

  1. Good at planning and management.
  2. Really want to learn the ins and outs of construction.
  3. Most people understand that they will pay more for supplies which seems to be an acceptable trade off for the control they gain over the process.
  4. Everybody knows they have to do their research when hiring subcontractors.
  5. But are they aware of the surprise gotchas?

Ok Here are the Top 5 Unexpected Pitfalls of being your own General Contractor.

  1. Not having the same relationship with Subcontractors

  • A reputable general contractor usually has a good long-standing work relationship with the subcontractors, the ones who do the work.
  • The general takes care of them and the subcontractors make an extra effort to do a good job on schedule.
  • If you are your own general contractor, the subcontractors will not have the same allegiance, so you can plan on running behind schedule a little.
  • This can eat up at least 5 percent of the savings …That’s 5% gone …
  1. Not having the time to closely monitor the project.

  • You need to be available to spend time on site, when needed.
  • Could be anywhere from 10 to 40 hours per week, depending on the stage in the process.
  • If you have a demanding full-time job, be prepared to take time off.
  • You must also have an intimate knowledge of the plans so that you notice any accidental deviations.
  • If you miss something early, repairing or modifying the plans later, to accommodate the error, can use up much of your 10 percent savings. …
  • Ok so now your 15% savings could be gone and maybe some of your vacation time.
  1. What’s next? Ah yes …The Building Permit Maze

  • Many people underestimate the time it will take to get building permit approval.
  • “Sometimes half of the project is just getting the permits … Go into the permit office as early as possible in the process to find out the restrictions.
  • That way, you’re not spending time and money developing plans that you can’t get permits for.”- SFGate
  • One homeowner relates how his building plan, estimate went south because of permit problems stemming from a lack of awareness of the local building regulations, among other things. “My conservative estimate of six weeks for plan approval was woefully inadequate”.
  1. Liability Insurance, Workers Compensation & Lien Laws

  • When you act as your own General Contractor, you become responsible for any third-party injuries that may occur on your property or damage to property by subcontractors.
  • If they aren’t covered the claim could end up landing on your homeowners’ insurance … or worse.
  • Also, if your subcontractors don’t pay their suppliers or subcontractors, a lien could be filed against your property.

 

  1.  Finally, it could destroy your marriage.

  • One homeowner, remembered a book that “quoted a higher than normal percentage of DIY construction couples ending in divorce.”
  • He said. “Be sure you’ve got a strong relationship and that you’re in 100 percent agreement about doing it yourself.”- SFGate

Summary Judgment:

This testimonial summarizes the pitfalls very well:

While we learned many things while serving as our own GC, the top three lessons are as follows:

  1. first, if you are looking to save time, don’t be your own general [contractor]. We can easily say that the project took twice as long due to our lack of experience and limited time.
  2. Second, be sure that you and your spouse can work together and are like-minded when it comes to what you are looking for in a finished product.
  3. Last, what we saved in money we paid for in sleepless nights worrying about what needed to be done before the next subs arrive, lack of free time, and lots of other unforeseen costs.  Jonathan Norling

How can you act as your own General Contractor, get around these pitfalls and sleep better at night?

  • Hiring a Diy consultant, Renovation coach or Advisor to help bridge the gaps in your knowledge and experience.
  • Yes, it’ll cost you a few bucks but in return you might be able to keep more of your General Contractor savings, a good return or payback on your consulting investment.
  • Yes you may even save your marriage!

 

 

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