Should You Be Your Own General Contractor?

by | Jul 9, 2021 | Building, How-To

 

If you’ve ever looked seriously into building a log home from scratch, then you know it’s usually not a low-cost endeavor. One potential way to keep costs down is with an idea that many potential log home buyers have entertained: Taking on the role of the general contractor themselves. And while this can result in substantial savings if done correctly, it’s a big responsibility, and certainly not a role to be taken lightly.

“It’s certainly possible to do it yourself, but you’re going to need guidance, and you need to know all the steps involved,” says Jim Bly, owner and president of Cedarcraft Log Homes. “I recommend consulting with a general contractor or your log home company to get a step-by-step rundown of what’s involved before making your decision.”

With that in mind, here are a few questions to consider as you ponder whether or not to be your own contractor.

1. Do You Need a Bank Loan?
This is the first thing to consider before making the decision, says Mike Okuley, owner of Piney Creek Farm, Inc., a distributor of Jim Barna Log & Timber Homes, as many banks now won’t even offer a construction loan unless there’s a licensed general contractor on the project. So if you need a bank loan, this one could be a deal-breaker for your plans.

However, if you know a contractor well, Bly says it might be possible to work around this by having a general contractor as your “backup” when you apply for the loan. But this will require a special arrangement with a contractor, likely one that you know and trust.

2. Do You Have a Construction Background?
While not an absolute prerequisite for being your own general contractor, Scott Ridder, vice president and co-owner of Dogwood Mountain Log Homes, says it’s undoubtedly useful to have a strong knowledge or background in construction before taking on the role of general contractor.

“Building codes are constantly changing, so you need to know what’s going to meet code, when you need to get inspections, and many other construction-related matters,” he says. “So having a construction background, or someone with a construction background to help you, is important.”

3. Are You Highly Organized?
While construction experience is not mandatory, Bly says that being organized definitely is. “You need to gain an understanding of the steps in the process—excavation, foundation, carpentry, heating, plumbing, electrical, etc. —and a rough timeline of how long each step will take,” he says. “Then, you want to have your subcontractors lined up so you can move seamlessly from one step to the next. You don’t want the site to be sitting empty for several weeks because you forgot to call the electrician early enough.”

4. Do You Know the Subcontractors?
If you’re familiar with the subcontractors, then you can get a better sense of who’s reliable, timely, and will give you a fair deal. This is critical to getting your log home done on time and on budget. However, if you don’t know the subcontractors, you can still do your homework to make sure the project goes the right way. Get multiple bids, ask for references, talk to past customers, and check any reviews of the contractors on the Internet.

Here again, you may want to check with your log home company first. “We offer our customers a list of reliable contractors that we have used frequently in the past,” says Okuley. “That way, our customers can have some peace of mind about their subcontractors.”

5. Are You Available to Visit the Site?
When you’re the general contractor on the home build, Bly says you’ll need to be available to visit the site occasionally to check on progress, oversee inspections, and the like. So, obviously, if you have a full-time job, this can add some difficulty to the process.

While maintaining a full-time job and overseeing a build is challenging, Bly says it’s not impossible. Here again, you’ll need to budget your time (and the time you need off from your job) accordingly. Also, Bly advises not going overboard on visiting the jobsite. “As long as you have contractors you can trust, it’s often best to stay out of the way and let them do their jobs,” he says. “A nosy homeowner can only add to the aggravation of the build.”

6. Can You Take on Part of the Work Yourself?
If you can be your own general contractor—and do it successfully—Bly says it’s possible to realize a savings of around 10 to 15 percent on the overall project. Where even more savings can be realized, however, is by taking on certain tasks yourself. “If you want to leave the plumbing and electrical to contractors, for example, but do the drywall and trim carpentry yourself, this is a great opportunity to save some labor costs on your home.”

Of course, the best approach is to take on only what you’re comfortable with. As with most things, the professionals know best. But with a reasonable understanding of what you’re getting into, a solid foundation of research into the responsibilities of what a general contractor does, and a strong organizational mind, Bly says it’s certainly possible for the homeowner to also be the general contractor — and have a positive experience doing it.