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Navigating Home Renovations: Acting as Your Own General Contractor

  • Writer: Desertsage Seals
    Desertsage Seals
  • Sep 26, 2024
  • 3 min read

For anyone who doesn’t have a background in construction or contracting, when it comes time for a home renovation, the entire process can be daunting. Many homeowners will defer to a general contractor in the event of any major remodel or new construction job. The upside to this is that a reliable general contractor will take responsibility of the entire project, and you can then continue with your own work or day-to-day life. The downside is that in exchange for managing the project, the general contractor will charge roughly 30% to 40% on top of the entire scope of work.

Understanding General Contractor Fees

What that means is, a general contractor will vet each of the trade companies who will come in and perform each stage of the work, such as demolition, excavation, plumbing, concrete, electrical, HVAC, framing, roofing, siding, interior design, etc. For simplicity’s sake, let’s say that all of the trade companies have been vetted, chosen and awarded contracts totaling $100,000. For the general contractor’s role in managing the overall project, they will charge an additional $30,000 to $40,000 commission on top of each of the trade companies’ total fee of $100,000, and you will be responsible for the bill of $130,000 to $140,000 for a theoretically hassle-free remodel or new construction project.

The General Contractor’s Team

In this context I refer to the general contractor as “they” since they typically act as a business entity or a team of project managers who work or supervise on site, as well as admins who work in the office or within the administrative scope of estimating, planning, budgeting, pulling permits and dealing with other bureaucratic steps. Most reputable general contractors have a fully staffed office, engineer and a dedicated sales professional that works as an initial point of contact between the homeowner and the business.

The Importance of a Qualified Sales Professional

Meeting with the sub contractor in the mountains
Stamped Concrete Design
Stamping Concrete

A qualified sales professional works as an advocate for the client or the customer, is available and attentive to their needs, communicative and readily negotiates with the business in an attempt to get the costs of the project within the customer’s budget, if that is possible. If that is not possible, the sales professional will be transparent and informative on market values and realistic expectations. He may also offer suggestions on alternative approaches or services that may be within the homeowner’s budget, as well as provide referrals and connect individuals with other businesses or individuals of mutual benefit. Trained sales professionals are typically personable, pleasant to work with and naturally fit into their role as connectors, liaisons and facilitators.

Homeowner as General Contractor

A homeowner is authorized to act as general contractor on the construction or renovation of his or her own home. They are legitimately entitled to contract engineers, obtain permits, vet and hire or award contracts to qualified trade companies, meet with inspectors, and manage the entire project. If one is not preoccupied with work or other obligations, it may even be worth the experience to delve in and learn hands-on about the entire process. You may find the end result to be rewarding, or you may find that the workload was more than you had bargained for. At any rate, here are some valuable resources available to you in the event of being a homeowner acting as general contractor on your own construction project.

Resources

The 2024 International Residential Code for One- and Two-Family Dwellings is a comprehensive code book that compiles all building, plumbing, mechanical, fuel gas and electrical requirements for non-commercial one- and two-family dwellings into one convenient code. The regulations cover dwellings and townhouses up to three stories in height.

Owner of Gold's Concrete on a conference call

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