Should You General Contract Your Own Home Construction Project?

Occasionally, a client will tell me that they are considering general contracting the construction of their home project, usually in order to save money by eliminating the general contractor's fee.  This is not a decision to be made lightly.


The General Contractor Role
What does the general contractor do?  He or she oversees the entire construction process from start to finish;  schedules and coordinates the work of the subcontractors, checks their work and pays them; orders materials and schedules their delivery at the appropriate time; and procures the building permits.  Often the general contractor is also a carpenter and will do the bulk of the construction work with his or her own team:  framing, siding, roofing, putting up drywall, etc.

He or she has built relationships with subcontractors over the years and knows which ones are dependable and do a good job.   Subcontractors will be more responsive to a someone who general contracts for a living than to a do-in-yourselfer because they know that if they do a good job, it may lead to future work.  


Cost Savings
How much can you expect to save by general contracting a project yourself?  General contractors often charge a percentage of the project construction cost, commonly 10%.  So if you do a stellar job of managing your project, you could save up to 10%.  On the other hand, the project could very welll end up costing more than it otherwise would have, due to mistakes, oversights, time delays and work that must be redone.

​
Are You Suited?
​Before you decide to take on this role, ask yourself the following questions:

• Do you understand the building process from start to finish, including the order in which different trades do their work and approximately how long each trade will take to do their job?
• Do you know which subs do which parts of the job?  Do you know enough to make sure that parts of the job don't fall through the cracks?  For example, either the plumber or the heating contractor can install gas piping to appliances.  Would you know to make sure that one or the other includes it in his/her contract?
• Do you know competent subcontractors that you can depend on to build your project?
• Do you know what a "good job" should look like, or conversely, do you know what a poorly done job looks like?  Would you know whether your project was built "to code"?
• Do you feel confident enough to question a subcontractor about work that s/he has done, if you feel that if is subpar?  
• If you are planning to order materials yourself, do you know what to order, including all of the bits and pieces that are easy to overlook? Do you know how much "lead time" each material requires?   Do you understand that similar materials may vary widely in cost? For example, you could save thousands of dollars on interior trim by buying  "production sizes" rather than sizes that require extra milling.
• Are you in a hurry to have your project completed?  If the building process takes longer because you are general contracting it yourself, is that okay?
• Are you an organized person?  There is a lot to keep track of during a construction process, and attention to detail is important.
• Do you have the time to general contract your project?  General contracting is not a job that's limited to spare evenings and weekends.  Much of the work needs to be done during the work day, when subcontractors and material suppliers are on the job.  Questions may come up at any time of the day and often need a quick response, possibly including a visit to the building site.  General contracting takes a lot of time.

Conclusion
Having a complete and detailed set of construction drawings from an architect can help.  However, a good set of drawings is no substitute for competent general contracting.  

Think through this decision carefully before deciding to be your own general contractor.  The risks are many, and the potential for costly mistakes is great.  Don't underestimate the value of an experienced professional for this job.