Should I be My Own General Contractor?
December 14, 2008
QUESTION BY A BLOG READER:
I am planning a major renovation of my house. Should I be my own General Contractor? Could I save money by not hiring a General Contarctor?
REPLY BY MODERATOR:
This question is frequently asked by homeowners contemplating major renovations or the construction of a new home. The question cannot be answered by a simple yes or no, the correct answer is, “it depends.”
It depends on the homeowner’s willingness, ability and readiness to assume the role of general contractor. But what exactly does a general contractor do?
Let us review what a general contractor (GC) must do over the course of a typical project. One of the many definitions of the term “general contractor” that can be found on the Internet is as follows:
The central figure in most construction pyramids, the person hired by the owner to plan and oversee the entire job. Often hires subcontractors who specialize in the various trades required for the job (ie., plumbers, electricians, framers, carpenters, etc.).
So, in light of all these tasks that are the responsibility of a GC, should a homeowner take on the role himself or herself? Clearly, it requires a great deal of time, ability, and knowledge to oversee all these tasks closely and properly. Also, keep in mind that a GC will typically make a gross profit on a project in the range of 20% to 30%, but a homeowner typically will not save that entire amount if s/he cuts out the general contractor because there are financial costs inherent to these tasks. As well, the homeowner will benefit from the GC’s involvement in many ways that may partially or completely offset the added cost of using general contractor.
So you decide. Clearly, the size and scope of the project comes to bear on your decision: A smaller project is certainly easier to oversee than a large, complicated one. Consider whether you have the time, resources, and know-how to undertake the job of GC, and weigh the costs and benefits of doing it yourself versus hiring someone experienced. Whatever you choose, good luck with your project!
More complete treatment of this subject can be found in a recent newsletter published by ReliableConnections.com and available here.
Comments
2 Responses to “Should I be My Own General Contractor?”
I find it best to leave that kind of stuff up to the experts!
I agree with you, I think that is the message of my comment. However, in many cases the homeowner may have difficulty in establishing the expertise level of his contractor. Almost anyone can get a municipal renovator’s license and call himself a General Contractor. Often the homeowner does not even know if the contractor has a license.