How Can You Save Money Being Your Own General Contractor?
Picking the right general contractor to design and build your home is a daunting process. This person is in charge of incorporating the specific design and architectural ideas that they have presented to the homeowner and provide them with a new and improved living space. A lot of homeowners opt out of hiring a general contractor and decide to be their own to save a little money.
A general contractor is the one that oversees the building project. They plan all the phases of the project and are the ones that secure the permits, respond to emergencies and they are the main communicator to the suppliers of the materials that are being used in the project. General contractors get paid a percentage of the price of the completed project and that is usually between 10 and 20 percent of the total job.
Here are a couple ways that being your own general contractor can save you a couple bucks:
- Being your own general contractor, you can save money on physical costs.
If you were to perform all of the labor that it takes to build the average home today, you would be saving about 50 percent of what it costs to build the home. The average home costs about $250,000 to build, so if you were to do the physical labor on your own home then you would be saving about $125,000 which can be put towards something else you might need down the road.
- Save by performing the less difficult tasks.
If you choose to take on the less difficult tasks like painting, landscaping, and cleaning then you can expect to save another 5-10 percent on top of the 50 percent that you are already saving.
- You don’t have to worry about markups.
It goes without saying that most general contractors markup not only the materials that they are using, but also the labor costs.
- Being your own general contractor means less overhead costs.
If you do the job yourself, you will most likely still have to pay overhead costs, but it’ll be less than if you hired a general contractor.
- You have a bit more control over your costs.
A lot of jobs come in over budget because not everything is in your control, especially if you are not doing the job yourself. If you play your cards right and you value your own time, you are more likely to have a better cost control. You might be able to smoke out deals on things like cabinets and countertops that a general contractor might not pay attention to because they are just trying to get the job done.
- It’s one less person you have to pay.
Sure, you’ll have to hire subcontractors and, but those aren’t as a big of an expense as paying a general contractor who oversees the entire project.
- You are in control.
More important than saving money, but you are in control and oversee this entire project. You get to have complete authoritative and creative control on what the end result of your home is going to be and you have the pride and satisfaction of building your own home.
Interested in learning more about our unique homebuilding program and how being your own general contractor can save you costs?
Contact us and our experts would love to help you out!