Should You Build It Yourself?

Unless you are retired, on an extended sabbatical, or have considerable construction experience and plenty of free time, managing a construction project can become almost a full-time job. It can consume an enormous amount of time and attention, distracting you from your normal way of making a living—and from enjoying the rest of your life.

Will You Really Save Money?

Acting as your own general contractor may look like an obvious way to reduce construction costs. After all, if you eliminate the general contractor’s fee, shouldn’t you save that money?

Not necessarily.

Established contractors usually have long-standing relationships with reliable subcontractors and material suppliers. They may receive trade discounts and preferential pricing that are not available to an individual homeowner. Their plumbers, electricians, carpenters and other trades also know what to expect when working for them.

You may eliminate the general contractor’s fee only to discover that you are paying more for materials and subcontracted work—and spending a great deal of your own time in the process.

There is another advantage to those established relationships: priority.

We all know what it is like to sit at home waiting for a repairman who was supposed to arrive hours ago. Now multiply that experience by the many subcontractors required to construct a house or addition.

Subcontractors generally prefer working for contractors they know. They know how the contractor runs a job, they know what will be expected of them, and they have reason to believe they will be paid promptly. Just as importantly, they want to maintain that relationship because the contractor may provide them with work on future projects.

A homeowner who may hire them only once simply does not have the same leverage.

What About Construction Financing?

If you will need a construction loan, talk with your lender before deciding to act as your own contractor.

The lender has a substantial financial interest in seeing that the project is properly constructed, completed on schedule, and kept within budget. Some lenders may have specific requirements regarding the qualifications of the person or company managing the construction.

It is much better to discover those requirements before construction begins than afterward.

When Things Go Wrong

Construction sites can be dangerous places.

Over the years, I have been involved with two projects where construction accidents resulted in workers being seriously injured. One resulted in a lawsuit in which the contractor was found responsible. The other resulted in an OSHA investigation.

Those experiences made a lasting impression on me.

Qualified general contractors normally maintain appropriate business insurance, including liability coverage and workers’ compensation as required for their operations. A homeowner considering acting as the general contractor should carefully investigate what insurance coverage and legal responsibilities would apply before beginning construction.

More importantly, an experienced contractor understands construction-site safety. He has spent years learning what can go wrong—and how to prevent it.

That experience has real value.

Permits, Inspections and Building Officials

Building codes and local ordinances have become increasingly complex. Navigating permits, inspections and building-department requirements can be frustrating and time-consuming, particularly for someone doing it for the first time.

An experienced contractor knows which permits are required, when inspections need to occur, and what work must be completed—or left exposed—before an inspector arrives.

That can save you from expensive corrections and delays. It can also save many hours otherwise spent scheduling inspections, waiting at the job site, making telephone calls, and dealing with the building department.

Construction Is All About Timing

A general contractor also coordinates the daily logistics of construction: subcontractor schedules, inspections, material orders and delivery dates.

Some materials must be ordered weeks or even months before they are needed. Order them too late and the entire project may stop while everyone waits. Order them too early and you may have expensive materials sitting around the job site, exposed to weather, damage or theft.

A good contractor knows when things need to happen and keeps the project moving.

That becomes especially important if you are paying interest on a construction loan. Every unnecessary month of construction costs money.

Knowing What Comes Next

Construction also has to occur in the proper sequence.

I remember one project where a contractor placed backfill against recently poured foundation walls, only to discover that the compacted soil was pushing the walls out of alignment. He had failed to recognize that the floor framing should have been installed first to brace the tops of the walls before the backfilling operation.

An experienced contractor would likely have recognized the danger immediately.

The same principle applies throughout construction.

HVAC ductwork generally needs to be coordinated before electrical wiring fills the spaces where the ducts must go. Framing and mechanical, electrical and plumbing work must be inspected before those systems are concealed by insulation and drywall. Drywall sanding should be completed before unfinished hardwood flooring is exposed to all that fine dust.

These may sound like small details, but a construction project consists of thousands of small details that have to happen in approximately the right order.

Getting that order wrong can be expensive.

So, Should You Build It Yourself?

For most homeowners, I believe the services of a good general contractor are a very worthwhile investment.

You are not simply paying someone to hire subcontractors. You are paying for years of experience, established relationships, scheduling and coordination, knowledge of construction methods, familiarity with codes and inspections, attention to safety, and the ability to recognize problems before they become expensive mistakes.

But what if you have considered all of this and still need to reduce construction costs?

There may be a reasonable compromise.

Consider hiring a general contractor to complete the structure and the more technically demanding portions of the project, while leaving certain final interior finishes for you to complete yourself—or to contract separately over a longer period of time.

Depending upon the project, these might include interior painting, some interior trim, tilework, floor coverings, closet fixtures or other finish work.

That approach allows an experienced contractor to manage the complicated—and potentially hazardous—portions of construction while still giving you an opportunity to contribute some “sweat equity.”

And perhaps most importantly, when the project is finally finished, you may be able to sit down in your new home, admire what you have accomplished, and say something considerably more pleasant than:

“I’ll never do that again! This was hell!”

A Note From My Owner-Architect Agreement

For my own projects, my Owner-Architect Agreement includes the following provision:

“By proceeding with the construction of this project without the employment of a Contractor who is experienced in this type of project, the Owner agrees to hold harmless, indemnify and defend the Architect and its agents, and subconsultants within the scope of their duties from and against any and all liability, claims, damages and cost of defense arising out of this project.”

Contract and insurance requirements vary by project and jurisdiction. Owners considering acting as their own general contractor should consult their lender, insurance professional, attorney, and local building department regarding the requirements and risks applicable to their particular project.