Can a Homeowner Act as Their Own General Contractor for Cutting Costs?

Yes, a homeowner can act as their own general contractor (GC) to build a custom home and potentially cut down on costs. However, it is important to understand the implications and responsibilities that come with this choice. This article aims to provide insights and guidance for homeowners considering this route, ensuring they are fully prepared for the challenges and rewards that come with DIY construction.

The Role of a General Contractor

Acting as a general contractor involves managing the entire construction project. This includes overseeing project planning, obtaining necessary permits, coordinating with subcontractors, scheduling work, and ensuring compliance with building codes and standards. Having no prior knowledge of construction can lead to low-priority status and higher spending due to the lack of familiarity with the trade.

Requirements for Acting as a General Contractor

For homeowners, acting as a general contractor does not always require a contracting license. However, meeting all relevant codes and standards is mandatory. Structural, drainage, lot coverage, and energy codes must be adhered to and stamped by appropriate licensed professionals.

Many jurisdictions allow homeowners to obtain permits as a self-appointed GC, but they must still ensure that all aspects of the project comply with local regulations and standards. This is crucial for long-term safety and compliance.

The Fully Informed Decision

While some homeowners choose to act as their own GC, often with the support of architects, others prefer to hire a professional. Among the architects I know, about half have hired GCs, and the other half have chosen to act as their own GC. Personal preference and the complexities of each project often play key roles in this decision.

For those deciding to act as their own GC, the work is undoubtedly demanding. Many GCs manage their real jobs during regular business hours and only work on the project during evenings and weekends. Effective money management, negotiation with subcontractors, and ensuring timely inspections are all critical aspects of this role. Having previous experience can significantly ease the process, although it does require a substantial time investment and stress levels can be elevated.

Challenges and Considerations

When building a house, especially without the support of a professional GC, certain challenges can arise. Here are some key considerations:

Priority with Subcontractors: Subcontractors may give priority to regular GCs, which can affect timelines and overall project progress. Logistics and Scheduling: Managing money, negotiating costs, and coordinating multiple subcontractors can be overwhelming tasks, especially if done alongside a day job. Permitting: As a homeowner acting as the GC, you may need to navigate the permitting process independently, which can be both time-consuming and complex. Expertise and Supplies: Ensuring the quality of materials, understanding the nuances of proper construction techniques, and selecting appropriate suppliers can be significant hurdles. Unexpected Issues: Construction is fraught with unexpected issues, from structural problems to material shortages. These can significantly impact the timeline and budget.

It is also important to know that many home improvement shows may portray a simplified and idealized version of the construction process. Not all installations seen on TV would pass basic inspections, and some of the work showcased is underwritten by major suppliers seeking advertising opportunities. Homeowners should be prepared for the reality that things can often go wrong, and it’s crucial to have a contingency plan in place.

Conclusion

Acting as your own general contractor can be a viable option for a homeowner looking to build a custom home and save money. However, it requires a thorough understanding of construction processes and strong organizational skills. With the right mindset, preparation, and support, it is possible to achieve a successful project. Always consider consulting with professionals and ensuring that your project meets all necessary codes and standards to guarantee safety and compliance.