A major element to consider is risk management!
A state licensed G.C. will also have a better understanding /leverage when it comes to dealing with sub-contractors and vendors.
Owner/builder permits are quite specific in language, and require the homeowner to be present, as well as exercise DIRECT supervision of work being performed!
Hiring a general contractor is usually done for convenience and efficiency. In nearly any circumstance, these contractors will save you time, probably several days, on the project’s duration. The hassle of having half a dozen contractors in your home is a bad enough, but without a guiding force, it can quickly become a nightmare. A project that should take only three days might end taking three weeks simply from scheduling and re-scheduling various subcontractors.
The overall effect on the project’s cost is less clear. Like with most things, time is money in the home improvement industry. Many subcontractors will charge a higher rate or charge per hour when they have to coordinate their work on a large project directly through the homeowner. Moreover, general contracting services also usually include access to products bought in bulk that individual homeowners might have to purchase at a higher price. This will get you a better deal on materials, and will give your job the customized look you desire. Yet, general contracting services also tend to add a 10-20% surcharge to the project’s cost, a reasonable fee, but one that should make homeowners at least consider forgoing these services.
I agree with KB Home Services and add this in my own words…
The advantages to hiring a General Contractor are, in my opinion, more positive all the way around. Although you are paying a little more for them to manage your project you’re also getting the benefits of their, usually several years, expertise in the trades like not getting BS’d by another sub-contractor or running into issues with an inspector because a sub said you could do something and in reality you couldn’t. They should also have trusted subs that they are comfortable with doing business with and have a good relationship with. Another thing you get is somewhat of a break material wise as there are long standing relationships with vendors.
General contacting is worth it in direct ratio to the amount of trades involved. A plumbing job that needs some concrete blocks not so much. A kitchen bath or addition we charge 25-50 percent more if there is no general because we know it’s going to be labor intense. homeowners don’t typically have the understanding or skill set to execute such a project without problems. It’s also a red flag that the homeowner might be trying to reduce cost to them not thinking about overall effect. We prefer not to be involved in this type of project. It leads to unhappy customers the bane of all contractors.
If you know construction in and out, and your are well versed with project management, then go ahead and GC your own project - you will save money that way.
Unless you fall into the above category however, you are asking for massive headaches, cost over runs, and bad end result by GC’ing the job yourself.
