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38 Interesting Facts How To Be Your Own General Contractor Book | The Pros and Cons of Being Your Own General Contractor
- Thinking about acting as the general contractor for your own homebuilding project? Here are a few things to consider before you dive in.Whether you want to have more control over the building process, are chasing a profound sense of accomplishment or just want to save a few bucks, the temptation to serve as the general contractor for your log-home project can be pretty powerful. But it’s not a decision you should make without investing plenty of thought first.We asked Dan Ramsey, a California-based contractor and author of several books about homebuilding, including The Complete Idiot’s Guide to Building Your Own Home, for his best advice for first-time would-be contractors. Before you pick up a tool belt, check out his tips: - Source: Internet
- In a survey of homeowners who recently completed a construction job, 69% reported that poor contractor performance was the single biggest reason for project underperformance. You can blame it on being a perfectionist or not spending enough on top-of-the-line materials, but ultimately, the numbers don’t lie. When a construction job disappoints, it’s overwhelmingly the contractor’s fault. - Source: Internet
- While contractor and construction consultations are common for residential builds and renovations, Premier offers a unique system of education and resource access that allows customers to act as their own general contractor, saving money and offering a level of control and design influence that are non-negotiables for the do-it-yourself crowd. As Glaw explains, “The definition of a general contractor is strictly the organizer of the job, or the organizer of trades and materials. A general contractor does not have to know how to swing a hammer or cut a saw or mitre a crown molding, and most of them don’t. It’s like a project manager – they just know how to manage a project.” While the thought of completing a home renovation with one’s own skills and knowledge is likely daunting at best to most homeowners, Premier’s system teaches its clients how to manage the renovation project from start to finish with the assistance of Premier Renovation consultants and skilled trade professionals. - Source: Internet
- That may be the biggest single reason not to be your own GC. If you hire someone to do the job for you and then something goes wrong, it probably won’t be your problem because GCs are paid to solve problems and get the job done. When you hire a general contractor, you are paying for his experience, competence, ability to anticipate problems, and, more than anything, for his willingness to assume final responsibility for the whole job. And he’ll get the permits, do the scheduling, and handle disputes between subs and suppliers. - Source: Internet
- Ultimately, you can only look to yourself when things go wrong. And the nature of the job is that things are always going wrong. General contractors are like firefighters–they’re always putting out budgetary and logistical fires on the job site. - Source: Internet
- If, after you’ve done your homework, you’ve still got the contracting bug but are feeling skeptical about your ability to manage the project on your own, don’t hesitate to call in a construction consultant. “A consultant will spend maybe one afternoon a week with you, helping to prepare you for the next week’s work,” Dan says. “It still saves money over a full-time general contractor because you’re doing most of the work yourself.” - Source: Internet
- Another advantage for business and tradesmen that become members of Premier’s list of certified contractors is the added benefit of being available for consultations. As many in the industry know, injury, illness and age can leave any successful tradesman in the lurch. Premier’s system allows contractors to operate in much the same capacity as Glaw himself, offering in-person and online consultations and the opportunity to earn through selling the Premier access card and Glaw’s book. These consultations allow contractors and tradesmen that are no longer able to perform the physically laborious tasks of the trade with a stream of income that relies on their expertise and knowledge of the industry, extending their earning potential well beyond the average career lifespan for those in the industry. - Source: Internet
- Written by the “turnaround” expert, Dr. Thomas C. Schleifer, Managing the Profitable Construction Business: The Contractor’s Guide to Success and Survival Strategies calls on Dr. Schleifer’s 45 years of industry experience and construction-specific consulting, as well as his team of construction business veterans, to create the ideal book for construction managers and CFOs looking to take better control of their businesses. The book offers real-world examples, advice and proven strategies to help construction business owners minimize risk, avoid common construction business pitfalls and grow their business. - Source: Internet
- And contractors looking to succeed in managing their own business need to understand not only the natural ups and downs of the industry but how to work around them. Just knowing the fundamentals of how a construction project progresses is usually not enough. You also need to understand how to bid and estimate for your target profit, choose the right projects, manage your crew and office, and follow local laws and building regulations. - Source: Internet
- It is in your best interest to tightly schedule your remodel so that it takes as little time as possible, but a general contractor is even more motivated to get the job done quickly. More time spent on your job means less time spent on other money-making projects. Contractors need to keep their job queue moving not only to make money for themselves but also to pay their subcontractors. - Source: Internet
- So if you opt to do the GC’s job, you’ll have some sleepless nights. Should major problems arise, you won’t have the same simple recourse to call your lawyer and tell him, “Sue the damn GC, it’s his fault.” Acting as your own contractor does not mean buckling on a tool belt and swinging a hammer all day. - Source: Internet
- If you’ve ever had construction done on your home or dealt with a remodeling job, you know what a headache it can be. Moving in and out of your house, never-ending scope creep, and general contractors sometimes being a pain to handle. It’s enough to make you want to do it all yourself. - Source: Internet
- With experience comes professional connections. Seasoned contractors operate in a social and professional network from which you are excluded. An experienced, well-regarded general contractor can often speed processes that can stymie ordinary homeowners. - Source: Internet
- On the other hand, there are arguments against being your own contractor. For example, if you aren’t satisfied with the finished product, you can’t complain to your GC that the job isn’t good enough and refuse to make the last payment. You would be talking to yourself because you are the general contractor. - Source: Internet
- This book is an excellent resource for experienced tradesman looking to make the move to construction management. As a former builder turned owner himself, David Gerstel provides hard-won insight on the day-to-day challenges most contractors face. He also helps breakdown the business side of construction like bidding, labor costs, tracking expenses and more. - Source: Internet
- Serving as your own general contractor for a major remodeling or building project can potentially save you tens of thousands of dollars. But these savings come with a notable cost in terms of stress, time management, and perhaps even the quality of the work. Don’t undertake this role unless you are confident in your abilities and have carefully weighed the pros and cons. - Source: Internet
- You wouldn’t buy a car without taking it for a test drive first, right? Nor should you make a major decision like this before getting your feet a bit wet. While you can’t exactly build a test-run house, there are several ways to determine your interest in and aptitude for contracting work, according to Dan. Perhaps the best way is to tackle a remodeling project on your current home, but you also can get a feel for the process by reading books or taking a construction-oriented class at a local community college. - Source: Internet
- Many states and municipalities require that general contractors be licensed and properly insured before they can legally hang out a shingle identifying themselves as GCs. However, no such requirements exist for the homeowner acting as his own GC. If after you do it yourself you like it so much you want to do it again for someone else, then you can find out what the requirements are. - Source: Internet
- It looks like contractors do nothing more than schedule the tradespeople. Yet even if that were true, their experience at scheduling and supervising workers would still be invaluable. Contractors have a wealth of experience that is often hard-won. Instead of starting from scratch, you can buy into years or decades of experience for the cost of the contractor’s commission. - Source: Internet
- Being your own contractor can mean you increase the odds of getting exactly what you want. GC’s make money by executing each job simply and efficiently so they can get on to the next one. Changes along the way and variations from the usual that make a job last longer can be the cause of irritation and uncooperativeness from a GC. Thus, if you are very detail conscious and plan to be looking over everybody’s shoulder anyway, it may make sense for you to be your own GC. - Source: Internet
- Large home improvement projects are arduous and can place an enormous strain on family and relationships. One benefit of paying the commission to the general contractor is that you are insulated from some of the most unpleasant aspects of home remodeling. Families and couples tend to be happier when they can gain some separation from protracted jobs, such as building a room addition. - Source: Internet
- If you go to the permit office as a homeowner, for example, you may find that no one wants to help you immediately, or that your plans are scrutinized intently. An established contractor visiting the same office may find the office doors flung open instantly. Building officials and contractors speak the same language, they might see each other several times a month, and many have established friendly relationships. With a history of goodwill, a general contractor may enjoy concessions and perks from the building inspection office that homeowners don’t receive. - Source: Internet
- If you’ve recently found yourself in a leadership position or are just looking to improve your leadership skills, this book is for you. It touches on all the aspects contractors need to successfully complete construction projects and run their business, from safety and team leadership to production and time-management skills. It also offers advice on the inner workings of the contracting business and how to build and maintain trust and credibility with your peers as well as your clients. - Source: Internet
- As with everything Premier does, education and information play heavily into the Premier certified contractors program as well. Premier certified contractors gain access to a wealth of educational programs, such as “ongoing Zoom webinars with guest speakers like lawyers so you get legal advice, architects and engineers and city planners and so on, because it’s always a moving target in the industry with new building codes.” This educational aspect helps contractors rise to and stay at the top of their game. - Source: Internet
- “People who have experience with plumbing or electrical work might become a subcontractor to a general contractor and save some money that way,” Dan suggests. If you’re worried about the time commitment, only take on as much work as you can complete easily in the evenings and on weekends. “The idea is to spend less time than it will take to make you lose your job,” he says with a laugh. - Source: Internet
- Tip Starting as an amateur general-contractor at the same time as you start a giant project is setting yourself up for failure. A major room addition that will require excavation, foundation work, framing, siding and roofing, wiring and plumbing, HVAC work, and finish carpentry is nearly as complicated as building an entire house, and few homeowners are really up to the task of managing the entire job. By contrast, remodeling a bathroom is a much better project for homeowners to gain experience at contracting out work. - Source: Internet
- A do-it-yourself approach is a great way to tackle many home remodeling projects. Thanks to good information and the availability of new building materials that are friendly to do-it-yourselfers, homeowners today can successfully take on many heavy, complex projects formerly reserved only for contractors and specialists, including floor installation, wall removal, and window replacement. Do-it-yourself remodeling not only saves you money but can be highly rewarding as you enjoy the successful results of your own labor. - Source: Internet
- Not to mention the resume. Clients look to prior experience before anything when seeking out contractors. If they’ve seen that you’ve stayed on budget and on a timeline for your own jobs, they’ll be more liable to trust you with assignments of your own. - Source: Internet
- One of the best reasons to become your own general contractor is to save money. Not only will you save that 10-40% cost of materials and labor, you certainly won’t ratchet up the scope of the job just to make a buck. What you need to do will get done, and when you’re through, you’re through. - Source: Internet
- There are many advantages to becoming your own contractor. Generally, contractors go through at least four years of apprenticeship with a trained contractor in their desired field. After some schooling and an exam, they enter the workforce, build up a client base, and execute increasingly more complex, higher-paying jobs. - Source: Internet
- Once a homeowner has acted as a general contractor for any major remodeling project, they rarely need to search for pros to complete similar projects in the future. Having established relationships with a group of subcontractors can lead you to even more references when you do need to search for other professionals. Your drywall contractor might know of a trusted house painter, for example. - Source: Internet
- There is no mystery to being a general contractor, though some skills with people, finances, and general good sense are required. For someone who has never done it, a willingness to ask questions, some of which may seem elementary or even silly, is necessary. And a knack for solving problems is certainly helpful. I wouldn’t recommend that a novice act as his or her own contractor if the job is large—say, a new house or a large addition—but an interior remodeling of moderate size can be quite manageable. - Source: Internet
- In fact, plenty of homeowners become their own general contractors. It doesn’t need to take an industry professional with years of experience to fix up a home. It just takes a vision and a sense of dedication. - Source: Internet
- “A general contractor is really just a manager,” Dan says, “so you can participate in the project in a number of different ways.” For those with little to no previous construction experience, he recommends sticking to paperwork and scheduling of subcontractors. Those who feel a little more comfortable with the nuts and bolts of construction, however, might want to take a more hands-on approach. - Source: Internet
- of projects ranging from a simple surface renovation of new paint and floors, all the way up to full-scale, start-to-finish renovations requiring a multitude of individual contractors, and even new construction projects. While the promise of greater input and control is enough for some, the true value of the system comes through Premier’s access card program, which Glaw describes as giving “access to all of our trades that we are using, all of our suppliers, and there’s hundreds of them. It ranges from window companies to roofing companies to appliances, carpets, railing, fencing, two-by -fours –anything that’s required to build residential and commercial buildings.” This access translates to significant savings on materials by unlocking industry-direct rates that are usually out of reach to the average homeowner. - Source: Internet
- Hundreds if not thousands of new construction jobs will crop up in the wake of these demands. When you become your own general contractor, you gain experience little by little with each job you complete. Even without going the traditional route of schooling and apprenticeship, you’re building the skills needed to take on jobs in the construction industry. - Source: Internet
- Don’t take on the job of general contractor on a whim. You probably won’t be able to hand it off to someone else partway through without costing yourself most of the money (or more) you were hoping to save. The personality. - Source: Internet
- Using an architect can be helpful. They generally have experience working with building departments. They may have favorite subcontractor relationships and suppliers they work with. They can also help judge whether or not a project is too involved for you to take on. - Source: Internet
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