jn3344, What online tools did you use to get estimates ? like foundation, framing, roof, etc?

My husband and I have been our own GC while building our current house. It was a lot of work. At times it was pretty stressful and I would do it again in a minute. Managing construction is no different from being a project manager for any project. It is your ability to plan and deliver against that plan. It is all about 3 things... People, Products and Problems. Be prepared to deal with problems, research products and buy from a reliable source and employ the best people you can afford. Some tasks are simple, however time consuming and dirty (we did a lot of that ourselves) and some require specialty professional experience. Learn to recognize the difference and put your money where it is absolutely necessary. And above all, concentrate on building a team with your subs. People react well to respect, care (I brought in coffee and donuts every morning and pizza every Friday) and your ability to create pride in a job well done.

Currently, we are remodeling our master bath and bedroom and chose to bring in a remodeling company. We actively participate in the project and the progress is remarkable. I do not know where you are located but if you are in the North East (MA. RI, Conn.) I strongly recommend the remodeling company we are using. (Calyx Builds, RI) who we found on Houzz.. They prepared a detailed proposal and plan and live up to it with a level of honesty and transparency that we appreciate. I sourced a lot of product myself at great prices, they checked that the products were technically viable and did the ordering for me at no additional charge. Furthermore, they made me a deal... if they could get a better price on some high end products like a BainUltra tub, high end tile, plumbing fixtures etc... they gave us the difference , if they could not I ordered myself... They make no secret that they need to make a profit and I am all for it... but at no time did we feel that they want it all...

if you have questions, post them and I will help if I can.

VF

Not many Homeowners and even subcontractors who want to become their own GC's have a stomach for that.

I have been a GC for as long as I can remember, and there is so much more involved in the whole remodeling process than finding a sub and calling him to perform his trade.

You need to have experience in the construction field,i.e know building codes which apply for most of the trades, know how to deal with inspections, know how to schedule work, stay on top of material ordering, know what needs to be done and how it should be done not to mention how it shouldn't be done, how to work out unforeseen situations and find solutions to rectify them, etc... that is the only way you can keep the cost down and have the job run smoothly...

If you not familiar with the above said, and when subcontractors get a whiff of "you don't know what you doing", you will end up with a huge headache on your hands, many sleepless nights you and most likely you will be broke before its time to put up the sheetrock. Seen that happen 100's of times, even to subcontractors who decided to become builders, some went broke before completing one house....some got out just to break even and when you talk to them, they all say one thing "I don't know the hell you do this".

Most people jump into it because it seems easy and you will save a bundle and people who want to become builders, they think it's easy and they will make a million...

With that said and before you do any major remodeling on a two story house, keep in mind its always one story before you start the work, and it's another story when you in the middle of it and believe you me, right now you worry about 15 - 20% that goes to the GC, by the time you be done with it, you would wish you paid him 25-30%.

I know it's hard to find a good GC or a good Subcontractor, especially when you come here and you read all the horror stories. Good GC's and Subcontractors out there, you just have to do some leg work and you will find them. Don't rush, check them out, check theirs references, check similar work they done and actually go and talk to Homeowners, don't rely too much on a phone call especially when you plan a major job, you could be talking to his brother in-law or a grandmother.

Another important factor is a contract and understanding scope of work from each trade. As I mentioned before "You need to have knowledge in the construction field" so you know what to expect from each contractor, because if you don't know... what should be included as part of his job, it will become extra charges. I'm sure everyone heard before "thats his job" "he should have done that" etc. So important to have everything in writing, in detail, etc so everyone is on the same page.

Try not to worry to much about 15-20% GC will charge you, Trust me, they earn that... you pay for knowledge and years of experience so that is a bargain... and keep in mind, most jobs that go sour or end up botched up, or left unfinished, is the jobs where people didn't want to pay that 15-20% extra for knowledge and experience and end up with a huge headache.

I hope it helps ...Good luck on your project and whether you decide to be a GC or hire someone else, I hope your remodeling project will go smooth and it will turn out to be a beautiful addition to your Home.

I kept looking for the right GC. I found a great one through a referral. My house is beautiful. He let me be my own designer and be at the job everyday. He trusted me even when he didn't think it would look good. In the end, he admitted to liking it all. He still keeps up with things and I can call him anytime.

coordinating with your sub's can be difficult and cost you $ i the end. A good GC has the ability to get your project completed on time and on budget.

@jillmeng...it looks like your dilemma has been solved by bringing on a GC that respected you and you respected him. In the end you both won!

If anybody is looking for a GREAT GC company in MA or RI you should definitely talk Calyx Build, Lincoln RI. We had a major rebuild/remodel/upgrade of our master bathroom. They were a pleasure to work with, gave us a fair and reasonable price and stuck to the project plan and budget. We would use them again when we have another project to do.

VF

@v f and @kellydockery you both mention being your own GCs. Did you have to become a licensed GC or did you do just do it? Did you have to get any particular insurance or did you just make sure that all of your subs, your plumber, electrician etc had their own insurance for the work they were doing? Thanks!

1. When you get your blueprints, get the spec book. Make copies for each subcontractor. Highlight his responsibilities from that spec book in a highlighter and mark a # by it. Write this into his contract. Include as many photo examples as possible. You will sometimes have to get very specific. For example: "Douglas Fir 2x4 #2 for interior walls, and 2x6 #2 for exterior walls." "12/2 Romex cable to room A outlets #2, 5, 6, and 14/2 cabel to room A outlets 1, 3, 4." "Bull nose finishing for all corner tiles and trim. All grout work to be sealed. Roof shingles are 20 year fire rated from supplier X Y Z. Walls should contain insulation X. Ceilings should contain insulation Y."

2. Get a line item listing. There are often specialized builder codes for each task. You will need this for the building loan.
3. Establish firm dates, and penalty dates. (The point in which is contract starts to drop in value for being late) After all you will pay interest on that construction loan.
4. Establish accounts for all suppliers. Pay the supplier directly. Do not pay the sub contractor. A reputable sub contractor will actually appreciate you did this because then he knows he's not out the material money.
5. Have all the lead sub contractors meet on site at once so they can discuss timing and concerns (ie: Cutting a floor joist to make room for a pipe)
6. Maintain a very detailed excel spreadsheet of all cost and who's been paid and when.

7. Ask for Federal Tax ID, Lien Release (A document that claims the sub contractor has been paid in full), and if you plan to flip it or claim deductions, invoices of work and payouts.

8. Ask for and validate all sub contractors liability insurance. Make sure you have a waiver for any onsite injuries. (Make sure he has workman's comp) And see if he has performance and delivery bond insurance. Be sure to get his contractor license.

9. Have your contracts reviewed by a lawyer who specializes in housing or construction work.

10. Be sure you have all the permits necessary.

11. Be sure all your contracts have the clause that all building has to meet all federal, state, and local safety codes. (ie: NEC)

12. Be prepared to be on site at least 3 days a week. Some less reputable builders may try to skip steps when you aren't there. For example, I saw one sub contractor put on a shingles without an underlayment/roof felt. If I saw a sub contractor pull this @#$@# to cut corners I would fire him right there.

13. Never pay a subcontractor up front for anything. Material supplies will be paid by you. If it's a very large job like framing, you can pay them labor based on percentage work done and work that into the contract. But hold out the last 25->33% until the work is deemed complete and passes inspection.

14. If you have no building experience, hire an outside master carpenter or gc for a flat fee to inspect the property on a regular basis. If you want to give him incentive to do the job right, tell him he will earn a bonus for what he finds wrong that you get the sub contractor to fix. He can spot when a wall is crooked, or out of plumb. He will know if insulation is safely rated for it's application. (ie: Attic, or next to can light outlets) These are things you will not know.

15. If a sub contractor comes back to you and says "I need more money" seriously consider firing him there. He should have known his cost in advance and may be trying to hustle you. Now sometimes things do go wrong. For example you might have a massive granite boulder the excavation sub contractor wasn't expecting. He might have to hire an explosives specialist to remove said rock. Or they might find asbestos on the pipes during a remodel. Or they might find an old oil tank in the ground that was abandoned long ago, but codes require you remove it. So use some common sense.

16. Don't forget hook up fees. You are responsible for these unless you specify them in the contract.

17. Don't forget you have to supply workable conditions for your sub contractors. They have to have a bathroom, water, and electricity at the very least. But treating your sub contractors well (ie: Offering free food and coffee on a regular basis) will certainly go a long way to help keeping them happy.

18. Obviously check references. Have them warranty their work (A year is a good time)

19. Know the difference between up front expensive versus long term savings. For example solar panels can take about 8 years to pay off, but after that you save money. Or a geo thermal pump with radiant heat is certainly very expensive initially but much cheaper to run. The exception being when the system breaks. An experienced sub contractor can direct you which way to go.

It is a tremendous amount of work, time, and responsibility. That is what you are paying for. If you are not working, and smart, you might be able to do it. But I guarantee it will be stressful.

I need a GC for first floor master bedroom and bath less then 400 sq.f. for a budget not more then 35.000. Dearborn heights, michigan.

You need a complete plan and comprehensive specs so bids from all people are based on apples to apples. That is the basis for "knowns." "Unknowns" due to unforeseen conditions or client changes are additional costs or credits and typically priced at the time they occur. However, whether the GC makes 10%, 20% or more on his subcontractors, or 15% plus on materials should not be your concern.

You need to step back and look at the entire effort knowing that the job you have signed off on will get done for a contract price. This is a risk the GC is willing to take given his experience. And you have very little risk if you do your due diligence in understanding your plans and specs and selecting your people based on their competence, not on their accounting technique and lack of line itemization.

Construction is one of the very few industries left where people still do the work...hands on...no computer perfection...timelines that are moving targets...constant issues needing cooperative solutions...often accomplished in many languages. Good GC's know how to handle what may come our way given the scope of the job. Sometimes those issues may take more time than expected but that's life. Over the course of a business lifetime, hopefully the plus's outnumber the minus's.

Line items for labor and building materials are over rated. You can fall into the trap of comparing them wondering why GC "A" is charging more for plumbing than GC "B" but less for framing, etc. etc. It's all a matter of purchase power, number of employees, and employee skills. So why even go there.

Once you have selected 2 or 3 GC's or sub's per category that meet the requirements of the job and appeal to you personally, then you can compare the "known" costs and make your informed decisions.

"Line items for labor and building materials are over rated. You can fall into the trap of comparing them wondering why GC "A" is charging more for plumbing than GC "B" but less for framing, etc. etc. It's all a matter of purchase power, number of employees, and employee skills. So why even go there."

I will respectfully disagree there. If you are a GC you will need line items because you will be buying the material for two reasons: 1) Your sub (if you never worked with him) could try to skip out with the cash advance for materials. 2) If you get a complete list of materials and go to a supply store account manager, he might have more flexibility in the pricing if you buy the whole sha-bang from him.

And if you have a very large project which requires a large loan, then yes banks will require this information to help settle their fears. For example, you might have a home that is coming in at $200/sq ft. They have to justify that if they are to give you a loan. Is it the materials? Is it the time because it's a craftsman home? This became especially true during the last housing boom in which a lot of loans were made that were bad. Changes in regulations make it tougher for this to happen.

I'm not saying you should be boggled down by it, or focus on it. A lot of GC and subs worry if you see the labor cost you will try to haggle or compare it to Joe Smoe with 1 year of experience. You should never worry about that if it's in line with other estimates. A lot of GC/subs don't want to put in the time getting this information because it is sometimes a SWAG (Simple Wild A** Guess) And if they lose the bid, they put in a lot of work for nothing. If they protest on a large project during the RFB ask them why. If they say it's time consuming and I have the experience to know the rough cost, tell them it's to settle the banks fears and you will offer them a stipend to do the paperwork. It's drudgery. But it is important.

But larger construction firms know there are build codes used to justify work. The build code books were created for a reason.

Like I said, it's a huge hassle and stress filled job being a GC. You have to decide if it's all worth it.

Yes, as a GC I ask for a quote from each subcontractor based on client approved comprehensive specs. I do not hire or work with shady subs. They buy their own materials because they know what they need to do the job. They get their permits. They get to the job when agreed. They do the job they agreed to do and move on. There's no missing this or that to cause delays which gives them the right to move on to next job and not come back until that obligation is met. Time wasted is expensive...for everyone involved. The domino effect is overwhelming.

As far as purchasing power for the whole shebang...remodelling has limited shebang. More times than not the sub has better buying power because he shows up at the contractors counter every day ordering for several jobs.

Again as GC, I provide a final quote based on an approved plan and comprehensive specifications. I provide the overall knowledge of the building process in order to manage all people in the timely, efficient completion of the job. I am the only person the owner needs to work with and I am totally responsible for the expected end result. It also helps that I also do the design.

If you have a professional GC who has been working in your area for several years with a following of loyal, repeat business homeowners (referrals) and has a group of professional, licensed and insured subs who have been working with him/her for a long time and knows the inner workings of the town departments, then that is the formula for success. Line item pricing should not be the homeowner's focus...it's the total picture, based on specs, management and skill. Of course, this requires the homeowner having to establish the specs and seeking out qualified GC'S to bid apples to apples.

If line item pricing was key to satisfaction, then we would all be driving the same car, using the same mobile phone or computer...they all get the job done but ...

In addition to what the GCs have already said, one of the more valuable reasons for hiring a GC is a Builder's Warranty. I've never entered into any remodel/custom build without one, and they're great equalizers. A legally binding document that spells out everything, including remedies for the things that can- and do- go wrong.

If you are your own GC, who pays/arranges for the "normal" things that need to be fixed/adjusted? You do. Trust me on this. That can cost you far more brain damage and money than a GC fee.

All you need to know........I agree.

"If you have a professional GC who has been working in your area for
several years with a following of loyal, repeat business homeowners
(referrals) and has a group of professional, licensed and insured subs
who have been working with him/her for a long time and knows the inner
workings of the town departments, then that is the formula for success.
Line item pricing should not be the homeowner's focus...it's the total
picture, based on specs, management and skill."

CAPITALIZE insured. : ) CAPS ON ALL OF IT. !!!

Read my latest Blog titled: Advice for Homeowners: Do Not Hire Me! and be your own GC

bostongc.com

I was my own GC for two gut rehabs in Chicago, with PERMIT. I made MANY mistakes in the first rehab, mostly due to inexperience and lack of funds. Everything was up to code, but my corner cutting on finishes lead to less than stellar results. The 2nd rehab went much better, but it only happened smoothly because I had a design/build architect as my right-hand man. He was onsite full time while I was at my day job. I generally wouldn't recommend being your own GC if 1. its a very small job (one bathroom) or 2. you have plenty of free time, and 3. you have lots of experience.

I love all these chose one you trust comments... If I knew one I could trust I wouldn't be here.

Serena,

The GC is going to generally charge you ~10% to supervise/plan the work. So if you porch cost you around $11,000 through the GC, then that is likely where the ~$1000 savings comes from.

I don't know a thing about your contractor, but some might get a little @#$@# if they discover you worked around them. If you decide to go it your own to save the money, tell them the porch is not in the budget. Then complete it after the GC is done all his/her work.

As always, check references and insurance.

Most of the time, if you get a loan to do the remodel, the bank or mortgage company will REQUIRE that you use a GC. Your homeowners insurance has a worker's comp rider to cover 3-4 workers, usually, which covers any worker in your home that you personally hire (housekeepers, handyman, etc.), but not the workers employed by the subs.

When we built our house, we went the route of hiring a GC by the hour and using vendors under our own credit, paying the invoices as they came in. Our bank construction loan converted automatically to a fixed-rate, 30-year mortgage, with only one closing charge. We had a total dollar amount for the construction loan, which we drew from to pay the bills each month, and only paid interest on what we drew off each month compounded from the start of the loan.

I was on site every day, but not every hour the workers were there. Some decisions had to made as we went along, based upon recommendations from the GC AND the builder. Most of those decisions required spending more money (I think we used 5 LAM beams, which we hadn't planned on and are very expensive). There were also cost-saving recommendations as well.

Yes, that was a requirement of our bank. And no, it is not the case everywhere, but if the bank wants to protect their investment they do require it. Also, in Vermont where I was living at the time, people would start a build, then live in the basement while the rest was being built (or not, as the case may be).

Smaller Jobs Such As Bathrooms And Kitchens I Would Say Yes. Its More Cost efficient However Comes With Cons. A lot Of Sleepless Nights And Hopeing Everything Go As Planned. Now Larger Jobs Such Additions, Add On, And Complete House Build I Would Probably Go With The Professionals And Would Pay The Extra Dollar For A Perfect Outcome