Here's How: Should I Be My Own Home Contractor?
Dear James: We plan to build our dream house, but the price quotes are outrageous now. Does it make sense to attempt to be our own general contractor to save some money? -- Randy T.
Dear Randy: A good general contractor can be worth his weight in gold for both controlling costs and headaches, but the key word is "good." The contractor should be aware of your budgetary constraints and make cost saving suggestions.
Typically, the contractor or builder will mark up the cost of building a house by about 15%. If your budget limit is only about 10% under the cost that the contractors are quoting, then it might be worth considering being your own general contractor.
A reputable general contractor usually has a good long-standing work relationship with the subcontractors, the ones who actually 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% of the savings, thus the 10% savings mentioned above.
You or your husband should plan on visiting the building site every day for at least a couple of hours. This is important for you to inspect the construction as well as to keep the subcontractors working diligently.
You must 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% savings.
The first item on your agenda is to learn as much as possible about the construction basics of a house. Once you have your preliminary house plans developed, you will know what specific materials, designs and subcontractor types you will need.
Armed with this knowledge, contact the national trade associations that relate to the materials and building procedures that you will require. These associations typically have many consumer and professional literature pieces that will be very helpful in quickly bringing you up to speed.
Several of the associations that you should contact are: Portland Cement Association, www.cement.org; Builders Hardware Manufacturers Association, www.buildershardware.com; Hardwood Council, www.ahec.org; Air-Conditioning and Refrigeration Institute, www.ahrinet.org; and National Roofing Contractors Association, www.nrca.net.
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