Being your own general contractor can be an appealing option when building or renovating your home. Acting as your own GC allows you to save on contractor fees and gives you greater control over the project. However, it also requires a huge time commitment and involves substantial responsibility. Understanding the pros and cons can help you decide if DIYing the GC role is right for you.
What Does a General Contractor Do?
Before weighing the pros and cons, it helps to understand the key responsibilities of a general contractor. The GC oversees and manages all aspects of the construction process. Main duties include:
- Developing the project plan and timeline
- Hiring, coordinating and supervising subcontractors
- Ensuring quality standards are met and building codes are followed
- Managing communication and collaboration between all parties
- Procuring necessary building permits and licenses
- Monitoring costs, change orders, invoicing and payments
- Arranging inspections throughout construction
- Maintaining safety standards and compliance onsite
- Providing ongoing project updates to the homeowner
- Overseeing punch list completion and project closeout
Essentially, the general contractor quarterbacking the entire building process and is the main point of contact for all involved.
Pros of Being Your Own General Contractor
There are some clear advantages to serving as your own GC:
Save on Contractor Fees
General contractors often charge 10-20% of the total project cost. By acting as your own GC, you avoid paying this overhead cost. For a major remodel or new build, contractor fees can amount to tens of thousands in savings.
Greater Control Over the Project
When you GC your own project, you are not bound to the timeline or approach of an outside company. You can make changes as needed and have direct oversight throughout construction. This gives you flexibility and control.
Customize to Your Exact Specifications
A GC may make material and design choices mainly for expediency or cost savings. Being your own GC allows you to hand pick finishes and features based on your personal taste and preferences.
Opportunity to Save Through Sweat Equity
As GC, you can get hands on with parts of the actual construction to further trim costs. Depending on your skill level, you may do demolition, framing, drywall, painting or other DIY labor.
Learn New Skills
Acting as GC will invariably teach you new useful skills related to home building, renovation, budgeting, hiring contractors, etc. These can benefit you on future projects.
Pride and Satisfaction of DIY Project
Taking on the GC role yourself can bring a huge sense of personal accomplishment and pride. You will be more invested in the project and outcome.
Cons of Being Your Own General Contractor
However, there are also numerous drawbacks and challenges to being an owner-GC that should be carefully weighed:
Massive Time Commitment
Acting as GC on a building project amounts to a full-time job. Between sourcing contractors, materials, managing schedules, budgets and problems, expect to spend 20+ hours per week. This is on top of your normal work and family commitments.
Learning Curve
If you’ve never been a GC before, expect a steep learning curve. You’ll need to quickly get up to speed on building codes, permitting, contracting, budgets, schedules and more. Mistakes due to inexperience can be costly.
Increased Stress and Pressure
The GC is ultimately responsible for issues like staying on budget, dealing with delays, quality concerns, safety and keeping all parties happy. These pressures can be difficult to deal with.
General Liability Risks
As GC, you take on substantial legal liability for the project and everyone onsite. Proper insurance coverage is essential, but still leaves you at risk for any issues.
Potential Hassles in Finding Subcontractors
Good subs are in high demand. As an owner-GC, you may struggle to find available talent and get favorable rates compared to an established GC company.
Difficulty Navigating Building Permits and Inspections
The permitting processes is notoriously frustrating. As GC, it will be your responsibility to ensure proper permits and pass all inspections despite limited experience.
Potential Conflicts with Spouse Over Project
The GC constantly makes major project decisions that will impact your family life. Disagreements with a spouse are common and add relationship stress.
Can Slow Your Normal Career Progression
Being a GC on a major construction project requires taking time away from your normal job. This pause in your career can hinder future earnings and promotion potential.
Hard to Objectively Evaluate and Manage Problems
A professional GC brings unbiased oversight. When you GC your own project, it becomes harder to objectively make changes and manage subcontractors when problems inevitably arise.
Key Considerations Before Being Your Own GC
Below are some important factors to think over before deciding to act as an owner-general contractor:
Your Construction Knowledge
Ideally, you should have working experience in the home building trades to act as an effective GC. At minimum, spend time educating yourself on the construction process, codes, regulations, etc. in your area.
Project Scope and Scale
Consider if the project is within your abilities as an owner-GC. Smaller renovations under $100k are more manageable. New builds or major renovations are far more complex and risky.
Time Commitment Required
Be honest about your schedule. Can you realistically commit 20+ hours per week as a GC without major impacts to your normal work and family life? Do you have flexibility?
Your Temperament Dealing with Stress and Conflict
The GC role involves a lot of stressful situations, delays, problems, conflict and quick decision making. Evaluate your ability to deal with these pressures.
Financial Resources and Contingency Fund
Does you have access to adequate financing and a contingency fund to deal with unexpected overages as an owner-GC? Costs often exceed budgets.
Your Relationship and Communication with Spouse
Open communication and full agreement with your spouse is crucial before taking on a GC project together. Conflict over the project can strain your relationship.
Hiring and Overseeing Subcontractors
Are you comfortable finding, vetting, negotiating rates, and overseeing subcontractors? Your relationship with subs is vital.
Passing Inspections and Navigating Permits
Prepare yourself to navigate permitting processes and pass all inspections. Learning the local building code is a must. Consider hiring a permit expeditor.
Liability and Insurance Coverage
Ensure you have all necessary liability insurance as an owner-GC. Unexpected accidents and uncovered injuries can bankrupt you.
Pros and Cons of Being Your Own General Contractor: Final Thoughts
Being your own general contractor has clear benefits in terms of saving on costs, control over the process and customizing the project to your own vision. However, the massive time commitments, risks, learning curve and stress involved are commonly underestimated. Carefully weighing all the pros and cons is necessary to determine if you have the abilities, temperament and risk tolerance to successfully take on the owner-GC role. If uncertainties remain, it may be wiser to choose an experienced general contractor you trust.
Frequently Asked Questions on Being Your Own General Contractor
What are the main pros of being your own GC?
The main pros are cost savings since you avoid paying a contractor’s overhead and fees, greater control and flexibility over the project, and ability to customize to your own specifications and preferences.
What are the major cons to being your own GC?
The major downsides are the huge time commitment required, increased stress and risks such as delays, budget issues, liability exposures and relationship conflicts over the project. Most first-timers underestimate the level of responsibility involved.
What construction skills do I need as an owner-GC?
Hands-on experience in areas like carpentry, electrical, plumbing etc. are helpful but not essential. More important is learning the overall process, building codes, permitting, hiring and overseeing subs, budgets, schedules etc.
Should I act as GC on new home construction?
Being the GC on a major new home build is only recommended for those with very extensive construction experience. The complexities of new home construction make it highly risky for first-time owner-GCs.
How much of a time commitment is required as an owner-GC?
Most experts recommend budgeting at least 20 hours per week as a general contractor. Complex projects or periods with problems/delays can require substantially more time to properly oversee. This is in addition to your normal full-time job.
What are the cost differences between an owner GCs vs hiring a GC?
A professional general contractor typically charges 10-20% of the total project cost. The exact savings as an owner-GC depend on how much you can DIY and your ability to get fair rates from subs. Some owners report saving 5-15% overall.
How can I find reputable subcontractors as an owner-GC?
Lean on your social network and ask around for referrals. Check sites like HomeAdvisor. Search online reviews. Vet subs thoroughly, check licenses and insurance, ask for multiple quotes. Hire slowly and fire quickly if issues arise.
What insurance do I need as an owner-acting-as-GC?
You need general liability insurance, workers compensation if hiring direct employees, builders risk coverage and specialty insurance for unique risks. An insurance broker experienced with construction projects can advise you. Do not skimp on coverage.
What percentage of savings is typical from sweat equity?
Most owner-GCs provide 5-20% of the labor themselves. Significant sweat equity is possible on finishing work like painting, trim, tile, cabinets etc. However, sweat equity has diminishing returns due to quality concerns and the learning curve. Focus DIY efforts where it will provide the most impact.
How can I convince my spouse this is a good idea?
Have candid conversations about expectations, responsibilities, time commitments and stresses. Make sure you are aligned and willing to communicate. Consider including your spouse directly in key project decisions and GC responsibilities. This fosters shared ownership over the project.
Conclusion
Being your own general contractor offers opportunities to significantly reduce costs and take control over a building or renovation project. However, the responsibilities involved should not be under-estimated. Before pursuing a DIY approach to the GC role, be sure you can realistically commit the time required, handle the stress, manage risks and navigate the complexities. With thorough planning and understanding of pros and cons, an owner-GC can reap big rewards in cost savings, sweat equity and the satisfaction of managing your own project.