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Started By
Message
Self Contract New Home Build.
Posted on 2/5/24 at 8:28 am
Posted on 2/5/24 at 8:28 am
Hey guys, I was wondering if any of you have been your own General Contractor on you own home build? How was the experience? What is your background? Any big take aways? Should I squash the idea and hire a GC. The main driver is saving $.
I have a 2 acre lot in Assumption Parish and seriously considering this option on my build. The house would be a 2200 sq ft home on slab. I do know a guy that lives a few miles away that has recently completed his home using this method, but he is a little more knowledgeable in this field. He says it was pretty easy for him due to the fact that all the subs used were local and knew each other which really helped with the flow and coordination. I would plan on doing the same.
My background is Industrial Construction Management, but from what I here, that does not translate at all into the residential side. My job is fairly flexible so i could put the time in on the job site when needed. I've also recently hand built a 800 sq ft marsh fishing camp with help from my dad, but there are no codes or regulations that needed to be followed. It was also a Metal building on pilings that we finished out so good experience, but not a house.
I have a 2 acre lot in Assumption Parish and seriously considering this option on my build. The house would be a 2200 sq ft home on slab. I do know a guy that lives a few miles away that has recently completed his home using this method, but he is a little more knowledgeable in this field. He says it was pretty easy for him due to the fact that all the subs used were local and knew each other which really helped with the flow and coordination. I would plan on doing the same.
My background is Industrial Construction Management, but from what I here, that does not translate at all into the residential side. My job is fairly flexible so i could put the time in on the job site when needed. I've also recently hand built a 800 sq ft marsh fishing camp with help from my dad, but there are no codes or regulations that needed to be followed. It was also a Metal building on pilings that we finished out so good experience, but not a house.
14
Posted on 2/5/24 at 8:35 am to Elusiveporpi
if you have construction project management experience, a friend that can sort of guide you, and access to subs, it's not bad at all.
i have those three things and would do it again in a heartbeat if it wasn't so cost prohibitive (building a house in general i mean).
i have those three things and would do it again in a heartbeat if it wasn't so cost prohibitive (building a house in general i mean).
Posted on 2/5/24 at 10:49 am to poochie
Thanks for the reply. I here getting the contractors is the hardest part. As well as understanding each contractors scope of work and understanding what they will and will not complete.
Posted on 2/5/24 at 10:54 am to Elusiveporpi
I GC'd my home build while also doing a lot of the work myself. It's a huge time commitment and I was only able to do it because I worked from home and lived on site. We did save quite a bit of money though.
Posted on 2/5/24 at 11:13 am to Elusiveporpi
I've done it. While my day job has nothing to do with residential construction, I've done some investment properties and design work. Despite being very familiar with construction, I still needed to lean on some contractor friends for help. I was able to save money doing it on my own, but there are some things you need to consider before going that route.
Typically a subcontractor isn't going to give you the same rate that they give a contractor unless you are paying cash. Paying cash has some drawbacks and I wouldn't suggest doing that either. The material supplier may offer discounts to the contractor that you don't get. In other words, you'll spend more than a contractor would to build your house. You are going to spend money on mistakes that a contractor wouldn't have. The only savings you will have will be the contractor fee minus those differences.
One of the biggest issues self-contractors have is getting subs to come back and fix things. However, the contractor can make a call and the sub sends someone over to fix it b/c they have that relationship. The licensed subs will be better at this (foundation, framing, brick, plumbers, elec, hvac, roofer, etc) b/c they have to be licensed. But your subs for drywall, flooring, painter, countertops, etc will be harder to get down the road.
I don't recommend self contracting to people unless they are tied into construction already in some way. If you still want to do it, the absolute best advice I can give you is this. Only hire subs that you know OR that come highly recommended by someone you trust. Do NOT hire a sub based on their price.
Typically a subcontractor isn't going to give you the same rate that they give a contractor unless you are paying cash. Paying cash has some drawbacks and I wouldn't suggest doing that either. The material supplier may offer discounts to the contractor that you don't get. In other words, you'll spend more than a contractor would to build your house. You are going to spend money on mistakes that a contractor wouldn't have. The only savings you will have will be the contractor fee minus those differences.
One of the biggest issues self-contractors have is getting subs to come back and fix things. However, the contractor can make a call and the sub sends someone over to fix it b/c they have that relationship. The licensed subs will be better at this (foundation, framing, brick, plumbers, elec, hvac, roofer, etc) b/c they have to be licensed. But your subs for drywall, flooring, painter, countertops, etc will be harder to get down the road.
I don't recommend self contracting to people unless they are tied into construction already in some way. If you still want to do it, the absolute best advice I can give you is this. Only hire subs that you know OR that come highly recommended by someone you trust. Do NOT hire a sub based on their price.
Posted on 2/5/24 at 11:15 am to Elusiveporpi
quote:
The main driver is saving $.
Sure there's money to be saved but don't cheap out when it comes to hiring the subs. Hire the ones with the best reputation in the business.
Posted on 2/5/24 at 11:32 am to Elusiveporpi
hire a GC, GC takes on the risk
self-contract, owner takes on the risk
only you know whether the risk/reward equation is likely to be in your favor. I would suggest to you that you consider the risk as you make the decision
self-contract, owner takes on the risk
only you know whether the risk/reward equation is likely to be in your favor. I would suggest to you that you consider the risk as you make the decision
Posted on 2/5/24 at 11:40 am to Elusiveporpi
The issue isn’t whether or not you are capable of managing the project - it is your access to the subs.
You are a one-off for them. If they get a job on another for an actual builder - they no-show your house. Then you are juggling timing because one is dependent on another.
You are a one-off for them. If they get a job on another for an actual builder - they no-show your house. Then you are juggling timing because one is dependent on another.
Posted on 2/5/24 at 11:58 am to Pvt Hudson
quote:
You are a one-off for them. If they get a job on another for an actual builder - they no-show your house. Then you are juggling timing because one is dependent on another.
see, i had no issues with this. i assume if you go through and pick subs out of the phone book and just take the lowest ones, you'll deal with this. If you have reputable subs, they're not going to leave you high and dry. It's all about relationships. IF you don't know of a good sub, go to your lumber yard for framers, roofers, finish guys. Plumbing/hvac/electrical warehouse for those trades. Paint and flooring store for those trades.
I think the biggest relationship you can build is with the lumber yard salesman. He's getting your biggest check and it behooves him to work with you and put you onto some good guys.
Posted on 2/5/24 at 12:48 pm to Elusiveporpi
I went with a GC so I could use his subs. I would have no idea how to contract reputable sub on my own. I talked to a few home owners that the GC built their homes to get feedback from their experience. Also, the GC’s subs gave discounts if I used them.
Posted on 2/5/24 at 2:15 pm to poochie
quote:
quote:
You are a one-off for them. If they get a job on another for an actual builder - they no-show your house. Then you are juggling timing because one is dependent on another.
see, i had no issues with this.
These are the 2 answers i see time and time again. But im not sure if the person who is saying' Its hard to get the subs to show up" has had this issue, or of this is just something they heard through the grape vine. I think the big key would be to talk to the potential subs and feel them out. Ask about work load now and whats coming up.
Posted on 2/5/24 at 2:19 pm to gumbeaux
quote:
I went with a GC so I could use his subs. I would have no idea how to contract reputable sub on my own. I talked to a few home owners that the GC built their homes to get feedback from their experience. Also, the GC’s subs gave discounts if I used them.
so the GC would have allowed you to use your preferred subs? gotta be careful with your own because it would be easy for the gc to blame your sub on problems.
Posted on 2/5/24 at 3:10 pm to Elusiveporpi
quote:
But im not sure if the person who is saying' Its hard to get the subs to show up" has had this issue, or of this is just something they heard
I finance custom homes for a living. Self-managed projects by non-builders is such a huge problem, we stopped allowing it.
Posted on 2/5/24 at 4:29 pm to Elusiveporpi
It is a rough way to save 10-12% of the build cost. We built in 2022 and hired a builder at cost + 10%. Best decision I ever made.
The lighting, plumbing, appliances all came with a nice contractor discount I would not have had contracting itself.
In real terms, I think the material savings likely shaved 2-3% off the build price alone.
The lighting, plumbing, appliances all came with a nice contractor discount I would not have had contracting itself.
In real terms, I think the material savings likely shaved 2-3% off the build price alone.
Posted on 2/5/24 at 4:54 pm to Elusiveporpi
If you decide to do this, or maybe even during the decision process, talk to as many potential subs that you can, and try to get them on your side before you even start.
Perhaps their confidence/recommendation that you handle it yourself helps their attitude to help you make it successful.
All that said, I hired a GC and his fee was 10%. His foreman's experience, and his relationships with their subs was well worth the 10% to me. Several of the subs had to come back to clean up their own work, or to clean up work that was messed up by subsequent subs, and they may have been more resistant to at my request. I suffered none of that friction.
Best of luck, and enjoy the process whichever route you choose.
Perhaps their confidence/recommendation that you handle it yourself helps their attitude to help you make it successful.
All that said, I hired a GC and his fee was 10%. His foreman's experience, and his relationships with their subs was well worth the 10% to me. Several of the subs had to come back to clean up their own work, or to clean up work that was messed up by subsequent subs, and they may have been more resistant to at my request. I suffered none of that friction.
Best of luck, and enjoy the process whichever route you choose.
Posted on 2/5/24 at 6:43 pm to Elusiveporpi
I did it, twice!
What “notbilly” says is the most accurate thing, I could not have said it better myself.
I got my subs by visiting active job sites and talking with supply houses/lumber yard.
Also, those little signs Subs put in front of houses they work on are very good sources.
What “notbilly” says is the most accurate thing, I could not have said it better myself.
I got my subs by visiting active job sites and talking with supply houses/lumber yard.
Also, those little signs Subs put in front of houses they work on are very good sources.
Posted on 2/5/24 at 6:43 pm to Elusiveporpi
I did it, twice!
What “notbilly” says is the most accurate thing, I could not have said it better myself.
I got my subs by visiting active job sites and talking with supply houses/lumber yard.
Also, those little signs Subs put in front of houses they work on are very good sources.
What “notbilly” says is the most accurate thing, I could not have said it better myself.
I got my subs by visiting active job sites and talking with supply houses/lumber yard.
Also, those little signs Subs put in front of houses they work on are very good sources.
Posted on 2/6/24 at 10:49 am to Elusiveporpi
A middle ground might be a cost + flat fee contract. You hire a “ licensed consultant” and pay him a flat fee. He lines up his subs with good relationships and discounts and you pay materials/labor but at his cost. You’ll get what you pay for regarding materials as you are paying his cost for materials but his rate is a flat free instead of a percentage of the total cost. Just an idea. I wouldn’t go look for Joe-blow though, make sure he comes on good recommendations and can show you his work.
Posted on 2/6/24 at 10:55 am to Skippy1013
quote:
I got my subs by visiting active job sites
OP do not do this
That is so lame. Would you walk in an office setting and get the info of a secretary because you're looking for a secretary at your job? Those guys are working and you're 1) have no legit reason to be on site 2) slowing down the job and 3) are possibly taking workers away from a builder that is already using them. Yes it's the subs decision to risk not getting work anymore from that builder but that is just ridiculous on your part.
If you wouldn't go up to the job and talk to the subs with the GC there, then that should tell you that you shouldn't be doing it with him not there.
Posted on 2/6/24 at 11:29 am to iwyLSUiwy
quote:
OP do not do this That is so lame.
What? If you do this tactfully, why not? Yeah, don’t go bother the sheetrock guy when he’s on stilts but if he’s down you can ask him for a card. Those guys are begging for people to hire them. Why would they not want an engaged owner/contractor to come to them?
And if they get pissy, you dodged a bullet.
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