Do I need a general contractor to build a house?

[jk96]

One thing I forgot to mention is contractors lien insurance. This could be a sticking point if you are getting a loan for the build as most banks are going to require it. This almost stalled my home build. I was finally able to get around it by using my other property and building as collateral should a lien be filed.

 

[not2old]

I built a home in Richmond B.C. in 1996. Things were slow and I had a builder friend available for advice as well as hiring him for finishing. It turned out great and I really enjoyed it as I sort of ignored my business that year. I don't think I saved any money as my income suffered by about $70,000. House cost about $630,000 and is assessed at about $6,500,000 today. Half way through construction It donned on me that if anything messed up bad that I had nobody to sue!!!!! At today's prices it could get scary.

 

[3 Horse Ranch]

A neighbor was a home builder and chided them for "measuring twice, and then again" before cutting a board. He said he could eyeball the cuts without measuring. The house he built is drafty, LOL.

I thought the mantra was "measure twice cut once." I worked with a retired carpenter from our church on a few projects around my old place, that was his saying and practice. A third time might be a little excessive, but it was their time and their dime.

 

[MasseyFerg231]

Short answer is yes you can, but that doesn't mean that it's legal or you should. I'm a GC, licensed in two states, and have been in this business for 25+ years. The construction component is relatively simple (assuming you have a good understanding of all scopes of work and thorough understanding of moisture management). I know several people that have built their own houses while working at their day job. Most tell me how much time it takes to manage everyone. Being retired would be a huge advantage if you could be there everyday without worrying about your "daily job".

1- Do you have a lender or paying cash? - Bank will require a general contractor. If paying cash you may look at setting up a couple of accounts with local supply houses and getting early payment discounts. Its not much, but pennies make dollars.

2 - Check your state, and local laws regarding general contracting. Florida for example allows you to be an owner builder with some strict caveats. You have to keep the house for two years after completion(not sure how they enforce that), you as the GC are required to be onsite anytime work is being performed, ensure that all subs and anyone you hire directly has appropriate workers comp or exemptions. The workers comp part they DO enforce and the fines are hefty.

3 - Check your state laws again - in Florida, un-licensed contracting is a felony. Permits/license/etc are to cheap to cause you legal trouble.

4 - State Laws - know your states lien laws and lien rights. Otherwise you could end up paying double. Collect partial and final lien waivers for every check that you write.

5- If you go this route, have an attorney draw up a simple contract that you can use for all trades that you hire. Have a clearly written/defined scope of work that states at minimum: Adddress/Name/contract amount/clearly defined scope/Index of drawings with dates/payment terms/how to cancel contract (for both parties)/what is required to complete contract.

6- If you have worked hard enough to save/retire/build a new house, you probably have some assets to protect. Contact your insurance provider and discuss your situation and see what you may need to protect yourself properly before you go down this road. Sometimes its nice to have the GC in place for liability reasons.

7- If you do proceed, i would recommend at minimum taking a "contractors license" prep course in person. It may cost you a weekend and $2,000 but it will enlighten you to the items mentioned above and hopefully more.


"FREE" Advice if you do move forward:
- Don't be afraid to tell a trade that they are not doing something right if you know its not right. Tons of good (and bad information) on line. Two places come to mind off the top, Green Building Advisor and Fine Home Building sites have pretty knowledgeable members.
- Dont always believe that GC's have direct access to all the good contractors. While this is true in general, our company works in numerous states where we dont always have subcontract relationships. Contact your local supply houses. Find out who buys quality materials, who pays their bills on-time. We find alot of good companies this way.
- ONLY hire insured (and licensed when possible). Many states maintain up to date workers comp databases you can check online. We require both lien waivers and proof of insurance before payment is released. In Florida if you pay someone without workers comp and get caught, you are responsible for for paying all of the workers comp that would have been required plus fines.
- Be prepared for craziness in pricing for most/all materials. I have never seen anything like this market.
- When a sub comes to you with a problem, be prepared to analyze the issue and respond in a timely manner so they can continue. If not they are likely to move on to the next job until you can figure out the answer. They don't make money by sitting and watching you think.
- Never hire anyone that you can't sue.

Again, don't be discourage about taking this task on, but be informed of what is required to have a successful project before you start.

 

[EddieWalker]

I'm a contractor and I've built a few houses. I don't like building houses, so I mostly do remodels, repairs and finish off jobs that other contractors disappear from. In my opinion, when a home owner does their own work, or is the GC, they either do a really good job, or a horrible job. Since it's their home, their attention to detail is often a lot better then you would expect from a GC. Other times, it's so bad that you just have to tear things apart and start over. In my opinion, the big difference is in knowing how it is supposed to be done, and not accepting "good enough" or "that's how we always do it" or "the other guy does that" or "its code" The "its code" one is probably the most common when not wanting to do something. The other thing is in every case when things are going badly, the client always knows that there are problems, but they keep hoping it will get better. It never does. Once you start to run into problems, stop and find out the correct solution. If you know what you want, and you are comfortable dealing with people that may not be honest with you, or not actually skilled in what they claim to be experts at doing, you should be fine.

 

[3Ts]

My wife and I built a house (aprox 1000 sqft) by ourselves and we were in our 60's when we started. We contracted out the concrete slab, spray foam in the walls, and the drywall. We did everything else, including the air conditioning and roofing. We did get help from the neighbors when it came time to set a 36' long beam, and when we installed the 6'x5' windows. We expected to take 6 months, it took a year. You should expect life events to interfere with the work on your house.

Later, we hired a GC to build us a bigger house. He estimated 4 months, it took him a year because he did not plan well and had subs that did not work well with each other. (I warned him of a long lead time door we wanted to use. He waited until he needed it to order it, then didn't inspect it for damage and had to reorder it.) Some of the subs did not know building code requirements and neither did the GC. (He admitted to that much later during the build.) But, the biggest problem to doing it yourself is access to good subs. The GC has another job for them after this one, you don't, so they're not going to be very responsive to you.

 

[jk96]

I'm a contractor and I've built a few houses. I don't like building houses, so I mostly do remodels, repairs and finish off jobs that other contractors disappear from. In my opinion, when a home owner does their own work, or is the GC, they either do a really good job, or a horrible job. Since it's their home, their attention to detail is often a lot better then you would expect from a GC. Other times, it's so bad that you just have to tear things apart and start over. In my opinion, the big difference is in knowing how it is supposed to be done, and not accepting "good enough" or "that's how we always do it" or "the other guy does that" or "its code" The "its code" one is probably the most common when not wanting to do something. The other thing is in every case when things are going badly, the client always knows that there are problems, but they keep hoping it will get better. It never does. Once you start to run into problems, stop and find out the correct solution. If you know what you want, and you are comfortable dealing with people that may not be honest with you, or not actually skilled in what they claim to be experts at doing, you should be fine.

Pretty spot on Eddie. I would put the quality of my owner/build up against the best contractors in our area. On the flip side I have a cousin who did his own and a high school buddy as well. Both should have kept their day jobs. One is poor quality of workmanship everywhere you look. The other was horrible design and layout. Both ended up with properties that have a much lower value than they would have had they hired it out.

 

[Doughknob]

The tricky part would be the ability to find and coordinate good subs. IMO that would be hard to do in today's environment unless you have already established relationships. That is where a GC is worth his markup.

Yep, the 'framer' I used built houses for a living and he gave me recommendations for plumber, HVAC, electrician, roofer. I knew a concrete guy for basement and septic tanks and a drywall finisher (I put up the board myself). I did most other things myself.

 

[tnbigal]

Good advice from the above posts. I was the GC for my own 4000 sg ft build. I did have some help from a relative along the way. I'll just add that the subs you hire can become frustrating, so be prepared for that. Someone already mentioned that banks might require a GC. Looks like you already have stamped plans, so that's covered. Lastly, codes. Where I live, the rural areas aren't as strict as the city locations. But when I started my build, the county starting requiring seismic stability added to the build. I had to get these added to the design. The GC's balked at the requirements and they were eventually rescinded, but I was caught in the middle due to timing and had to include them. You might have a ton of other things to consider, such as lot setbacks, easements, sewer, electrical and gas connections, etc. Even though I'm rural, my county even has an adequate facilities tax which had to be paid.

I will add that while I would do this again, I wouldn't even consider it in the current environment as it relates to covid, supply chain, and lack of adequate contractors.

 

[oldpilot]

We were fortunate in building our house in 1981-2 when interest rates hit 20% and people just stopped building. We found a contractor who was not only desperate but honest. We showed him the plans of a house we wanted to copy (while extending the dimensions two feet in both directions to accommodate 4x8 plywood) and he priced out each cost plus 10 percent for himself. Susan said, "I'll do that!" We did the insulation and the painting ourselves, and I did the electric wiring, which I did; we contracted out the chimney (we lost money on that) and the plumbing. The two of us worked full time on site from April into September, which I concluded was necessary anyhow, because builders do make mistakes, and the only way you'll catch them is if you're there. It was a great experience. I wouldn't have done it any other way.