Considering being your own General Contractor?

 It can be tempting to have control in a project. To be the one who hires the tradesmen, orders and inspects the materials, checks and double-checks figures and costs, and perhaps most importantly, makes the rules of the project and enforces them. If that appeals to you, than you might be considering acting as your own general contractor. But should you?

Diving into the world of renovation is unchartered territory for a lot of homeowners. Many first time remodelers end up spending a lot more money than they need to because of a lack of knowledge about construction and materials costs. While you might have a keen interest in construction or remodeling, that doesn't a professional make. You’ll need the ability to speak the industry language, read the architectural drawings, understand the processes in accomplishing a result. You'll need to describe the job and schedule accurately, not to mention negotiate prices, draw up a binding contract and even take responsibility for getting I-9s and tax documents.

And while you're at it, don't forget that you may be responsible for all permits. You'll have to research what work requires a permit in your city, county or state and fill out the paperwork and get it submitted. You'll also be in charge of dealing with the inspections that come along with the process. Subcontractors might not be interested in committing unless your permits are complete.

The biggest reason homeowners become their own GC? Money, of course. GCs are trying to run a business, no different than other professionals who have credentials and experience. That means making a profit and covering the overhead cost they typically will add between 15 and 20% to the cost of materials and labor.

Who cares about time and hassle when you can save money, right? Not exactly. Consider that a large part of a GC's job is to figure out how costs can be minimized. This could mean a variety of savings that homeowner doesn't have access to like preferred vendor discounts on materials/products, and simply knowing who has the best deals on what.  Logistics is also a large part of a general contractor’s job description to coordinate all work done by subcontractors. It is these relationships that typically get GC’s better pricing and scheduling because of the volume of work, whereas a homeowner is a one trick pony show. The GC also checks to see that the work is completed in compliance with local building codes; warranties the work and deals with any problems that develop during and after construction; and collect lien releases and process payments.

In general, being your own GC is probably a bad idea for the average homeowner looking to save money on remodeling costs. But if you do have inside knowledge about the construction industry (or are willing to spend a serious amount of time learning about it), then being your own general contractor might be a realistic way to cut expenses.