How to Be Your Own General Contractor

Do you want to act as your own general contractor to save money? Is it really a good idea?

How is the new house going?

Slow. We're working on it during the weekends before we can move in.

What do you mean you're working on it? Can't the contractor do the work whether you are there or not?

I was talking to a lot of people on how to be your own general contractor and have been following their advice to save money.

Don't tell me you're trying to work on your new fixer-upper yourself.

Of course not. That's not what my friends say.

What did these friends say? Find the cheapest guy and hope the house isn't in worse shape than when he started?

If you find your own contractors, such as carpet installers, carpenters, tilers and landscapers, you save the 20% or even 30% commission the general contractor charges you. If I trust a contractor, I can let him work whether I am there or not, like the landscaper ripping out the dead trees and putting in sustainable landscaping can work without my oversight.

There are risks to being your own general contractor.

Such as?

If the project goes wrong, you cannot complain to the general contractor. If you hire someone who doesn't know what they are doing, you may have to pay out of pocket to fix it. You're supervising the workers, but you also have to verify the quality of their work when they are done. Do you know how to do that?

I can hire someone like an inspector -

A home inspector may not tell you that the work is shoddy or of poor quality, only whether it is legal, safe and affects the home's value.

Let's say you're right in that regard. I could ask someone who works in construction to check their work.

And now you're back to hiring a contractor or paying an inspector. Or are you going to ask Bob Villa?

I'm saving 20% to 30% on the project.

Most contractors don't charge that much; they charge 10% to 20%. And while you may save the general contractor's fees, you'll lose the general contractor's discounts on material; then being your own contractor is no longer such a good deal.

It sounds like I should have put more thought into this.

Especially when it is with your biggest investment, a home. The only people who should be their own contractors are those who already work in construction or familiar with project management like engineers.

How then can I save money on the project?

Put in sweat equity to lower the labor costs? Get a general contractor now to coordinate things or get materials at a discount?

Talk to a general contractor and get tips to do it right. Or talk to someone who does projects like this for a living, to help you supervise the contractors so you don't make a mistake. The time to do the research or get expert advice is a good investment.

If you're not an expert, then why am I talking to you?

Because you didn't know the difference between an expert and an amateur like yourself.