Taking on the adventure of being your own contractor for your custom home is like diving into the world’s most intricate jigsaw puzzle. Not only do you need to have all the pieces, but they have to fit together at the right time and place. As you explore the idea of being your own general contractor, brace yourself for the rollercoaster ride of cost-saving highs and decision-making lows. While being your own general contractor can save money and provide a hands-on experience, it comes with its own set of challenges and responsibilities. This article delves into the pros and cons of being your own contractor and taking the helm of your custom home project.
The Role of the General Contractor: Captain of Construction
Before we dive into the escapades of DIY contracting, let’s take a quick look at the general contractor’s role and responsibilities that you may be taking on. Picture yourself as the captain of your construction ship, navigating the treacherous seas of permits, schedules, inspections, and subcontractors, all while ensuring your dream home doesn’t turn into the Titanic. Being your own general contractor means you get to be both the captain and the navigator, all rolled into one.
Pros of Being Your Own General Contractor
Cost Savings: One of the primary reasons homeowners choose to be their own general contractor is for the savings. Hiring a professional contractor involves a fee, which can range from 15-25% on top of the costs. By taking on the role yourself, you can “potentially” save a significant amount of money, allowing for budget flexibility in other areas of the build. Why’d I say “potentially”? Well, your time is worth something and we’ll talk about it shortly, but errors can easily eat into those “potential” savings.
Increased Control: Being your own general contractor gives you complete control over decision-making and the construction process. You can directly oversee the project, ensuring that your vision is executed precisely as you imagined. This level of control can be empowering for those who have a strong vision for their custom home and want to be involved in every aspect of the build. Just remember, all that control places a lot of responsibility and accountability on your shoulders.
Learning Experience: Acting as your own general contractor provides a unique learning experience. You’ll gain insights into the construction industry, project management, various trades and building code. This knowledge can be valuable not only for your current project, but for future endeavors, whether they involve home improvement or other construction-related activities.
More Flexibility: Taking on the role of general contractor allows for greater flexibility in scheduling. You can adjust timelines based on your preferences, making decisions that align with your priorities and lifestyle. This flexibility can be particularly advantageous if you have specific time constraints or if you want to accommodate changes in the plan as the project unfolds. This isn’t to suggest that being your own general contractor will speed up the project or shorten the timeline. Likely just the opposite, but the benefit will be your ability to be nimble and make changes quickly.
Cons of Being Your Own General Contractor
Time Commitment: Perhaps the most significant drawback of being your own general contractor is the substantial time commitment that is required. Brace yourself for the time-sucking abyss that is managing subcontractors, navigating permit paperwork, waiting on suppliers, and playing referee from time to time. If you have a full-time job or other commitments, the time required for effective general contracting may be challenging to manage.
Lack of Industry Knowledge: Professional general contractors bring years of industry experience to the table. Entering the world of construction without a professional guide is like navigating a maze blindfolded. Contractors have established relationships with subcontractors, knowledge of local building codes, and a deep understanding of the construction process. Without this knowledge, you may find yourself lost in the labyrinth of codes, jargon and specifications. If you lack this expertise, it will likely feel like you are trying to assemble Ikea furniture without the instructions. Not only will it be frustrating and end with extra parts, but it'll most likely lead to mistakes that will cost you time and money.
Stress and Decision Fatigue: Managing a custom home build can be stressful and full of drama, especially when faced with unexpected challenges or delays. Being your own general contractor means taking on the burden of decision-making, problem-solving and handling any issues that may arise. I’ve always said it’s not if, but when a project will hit that bump in the road. Even the most perfectly managed project has challenges. The constant need to make important decisions throughout the process can lead to decision fatigue, impacting the overall experience of building your dream home.
Limited Network of Subcontractors: Contractors often have an extensive network of trusted subcontractors and suppliers. These relationships can be crucial for securing quality materials, skilled labor, and competitive pricing. As an individual homeowner, you may have a limited network or be unfamiliar with the best resources in your area, potentially compromising the quality, costs, and efficiency of the construction process.
Accountability for Mistakes: When you act as your own contractor, you are accountable for any mistakes or oversights that occur during the construction process. This includes both financial and structural consequences. Professional general contractors typically carry insurance to protect against errors and omissions, providing an additional layer of security to cushion the blow of errors that may be lacking when you take on the role yourself.
Other Things to Consider – Will The Bank Let Me Be My Own Contractor?
In addition to all the Pros and Cons above, there are some other items you should keep in mind. Depending on how you plan on financing your construction, you had better confirm if your lender is comfortable with you being your own contactor. Many banks have approved builders that they are willing to do loans. The approvals are based on their financial stability and experience. This way the bank can ensure that the project is not risky. Without that comfort level, you may find that lenders may not lend to you, or their terms may demand larger upfront contributions from you to decrease their risk.
Another consideration is your state and local requirements. Most areas do allow homeowners to be their own contractors, but they may have other requirements for insurance, licensing or even how often you can be your own contractor.
Conclusion
In the realm of custom home building, the decision to be your own general contractor is a personal one, much like choosing between a superhero cape and a cozy blanket. The cost savings and increased control are tempting, but the time commitment, lack of industry knowledge and high stress are formidable foes. Before diving headfirst into the construction carnival, take a moment to evaluate your appetite for adventure, your knack for decision-making, and your willingness to embrace the unpredictable journey of DIY contracting. If you choose to be your own general contractor, thorough research, meticulous planning, and a realistic assessment of your capabilities will be essential for a successful and satisfying custom home building experience.
Comments