The Pros and Cons of Being Your Own General Contractor
If you've got the expertise, time and persistence, serving as your own general contractor when building or remodeling your home can save you money but might add a few more headaches. It's somewhat unusual for lenders to allow the borrower to serve as their own general contractor. At Compeer Financial, we're unique and allow qualifying clients to serve as their own general contractor when building or remodeling a home.
While there are several advantages of being your own general contractor, it isn’t for everyone. Here are some areas you’ll want to consider as you determine if you’re up for the challenge of being your own general contractor.
Being your own general contractor can save you the cost of hiring one. Having the ability to do some of the work yourself saves you money. However, if you don’t have the right experience, it can also end up costing money if you run into issues that cause you to have to re-do something.
A contractor typically has more building experience than an average homeowner. This can prevent delays and costly mistakes throughout the construction process.
Contractors are usually more familiar with construction timelines. This means they know exactly when to call the electricians, plumbers and other sub-contractors to make sure they arrive on the day they are needed, preventing delays. Because of this, a project typically takes longer when homeowners act as their own general contractor.
A good general contractor will typically have loyal sub-contractors. If you work as your own general contractor, you may not get the level of service and responsiveness from sub-contractors. They will typically prioritize work for contractors, whom they depend on for consistent work — especially during a busy season.
Level of Involvement:
Being your own general contractor allows you to have more hands-on involvement and decision making control for your home. It also makes it easier for you to do some of the work yourself or use friends, family or others to do some of your work.
It's not for every borrower, but serving as your own general contractor when building or remodeling can save the right client time, money and hassles.