Being my own GC in LI (Port Washington, Accord: insurance, new house, buying)
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Is it a crazy idea to serve as my own general contractor to build a house in Long Island (probably Port Washington)? The idea would be to buy an older "as is" type house as a tear down, and then hire subcontractors myself to save money. There are websites and books about this that I plan to look into, but what does the forum here think? Is that a crazy idea? I'm a relatively capable person but I don't have a lot of experience in this area so I would have to read quite a bit and risk some "learn as you go" activities. My biggest concern is that the subcontractors won't prioritize my work since I am a one-off, as opposed to a regular builder that they frequently get work from. Thoughts? Thanks so much in advance!
It's doable if you know people. Your first obstacle would be getting a permit to begin work. Most towns won't issue a permit for major renovations without a licensed GC beforehand. Next you are going to realize that sub contractors are just regular contractors that are not going to give you the same price they would charge a GC. If everything goes smoothly you may be able to save a few bucks but, with no experience in the field it's going to be very difficult.
in theory you can save money but it's a huge risk. And do you work full time? If so, who's going to be on site taking delivery of materials, checking what the subs are doing, securing the site at the end of each day, meeting with inspectors, etc.? And then there's insurance concerns.
And then you're going to have to grease the local politicians for the sudden zoning problems that always come up. Then there's the kickbacks to the carpenters, and if you plan on using any cement in this building I'm sure the teamsters would like to have a little chat with ya, and that'll cost ya. Oh and don't forget a little something for the building inspectors. Then there's long term costs such as waste disposal. I don't know if you're familiar with who runs that business but I assure you it's not the boy scouts.
If you know what to look for and know good contractors you will probably get a better quality home. Our current home was a new build and its so sad to later realize how many corners were cut that didn't need to be. The few dollars the builder saved have already cost us in unnecessary repairs. The warranty is nearly useless. According to the builder the house was "built to code" but it seems that the code is very slack. I would avoid buying new construction in the future. Should we ever move, we would love to do exactly what you are thinking of doing, a custom build, where you can supervise all the construction to make sure its built to your quality standards. It's the ideal time to put in quality materials and reinforce the structure.
And then you're going to have to grease the local politicians for the sudden zoning problems that always come up. Then there's the kickbacks to the carpenters, and if you plan on using any cement in this building I'm sure the teamsters would like to have a little chat with ya, and that'll cost ya. Oh and don't forget a little something for the building inspectors. Then there's long term costs such as waste disposal. I don't know if you're familiar with who runs that business but I assure you it's not the boy scouts.
Is it a crazy idea to serve as my own general contractor to build a house in Long Island (probably Port Washington)? The idea would be to buy an older "as is" type house as a tear down, and then hire subcontractors myself to save money. There are websites and books about this that I plan to look into, but what does the forum here think? Is that a crazy idea? I'm a relatively capable person but I don't have a lot of experience in this area so I would have to read quite a bit and risk some "learn as you go" activities. My biggest concern is that the subcontractors won't prioritize my work since I am a one-off, as opposed to a regular builder that they frequently get work from. Thoughts? Thanks so much in advance!
It's done all the time... Would I recommend it in your case? No...
Are you working while this build will be going on? Is there someone who can be on-site when issues arise? Oh yes, there will be issues. Notice I didnt say problems. There will always be something that isnt quite right on the plans, or with the concrete, or the framing. Will you be able to be on site when they're asking you what to do, and would you know what to tell them? You're not going to learn all the in's and out's from a Home Depot book.
I had a call last week from a foundation foreman saying the house we're doing an addition on is waaaayy out of square. Like 13" in 50' out of square. A quick trip to the site, pulled some reference lines and showed the excavator operator his error. Would you be able to handle such an issue?
There's bit of a building boom going on right now. Everyone who is worth hiring is busy. They're likely going to price your project on the high end knowing they have to deal with an amateur GC. If you hire the cheap guys, you're going to have problems.
Talk to a few builders first and see where their numbers land.
It's done all the time... Would I recommend it in your case? No...
Are you working while this build will be going on? Is there someone who can be on-site when issues arise? Oh yes, there will be issues. Notice I didnt say problems. There will always be something that isnt quite right on the plans, or with the concrete, or the framing. Will you be able to be on site when they're asking you what to do, and would you know what to tell them? You're not going to learn all the in's and out's from a Home Depot book.
I had a call last week from a foundation foreman saying the house we're doing an addition on is waaaayy out of square. Like 13" in 50' out of square. A quick trip to the site, pulled some reference lines and showed the excavator operator his error. Would you be able to handle such an issue?
There's bit of a building boom going on right now. Everyone who is worth hiring is busy. They're likely going to price your project on the high end knowing they have to deal with an amateur GC. If you hire the cheap guys, you're going to have problems.
Talk to a few builders first and see where their numbers land.
I did something similar to the OP, but it was a full 2nd story addition and remodel on the first floor. So almost a new house, but no new foundation. Only reason why I feel I was able to, was b/c my brother in law was in construction. He had a company a while back with a partner, but now only did small projects, bathrooms etc. He and I did the GCing jointly splitting time at the site and meeting subs. If I were to do it over... I wouldn't
Getting subs if you don't know any is tough. We knew a bunch, but there were some gaps and although most worked out, we ran into a few issues.
If you don't know much about construction, you're in trouble, the subs aren't there to teach you and you won't always know whether something is right or wrong. Stuff that goes wrong will become a finger pointing exercise.
Pricing can be all over the map from different subs. I'm sure your job as a homeowner GC will get a PITA premium. I'm sure mine did from some.
On top of that, you will not be priority, the other GCs will be. Also scheduling is big for these subs. They need to be able to come in and do their work and get out. scheduling them for Thursday, pushing them to friday and then the following wednesday doesn't fly.
The only benefit a homeowner has over a GC to these subs is payment. At least what the subs I worked with said. Basically GCs are slow payers on the work. A lot don't have great cash flow and are waiting on payments to them before they are paying subs. I was paying with a check upon completion of phases to the subs.
I'm sure I saved some money overall and put in some custom touches, but I think for all the headaches, the extended timeframe and stress, it wasn't worth it.
BTW, in town of hempstead you don't need a GC. You do need plans from an Arch and you need workers comp insurance.
Is it a crazy idea to serve as my own general contractor to build a house in Long Island (probably Port Washington)? The idea would be to buy an older "as is" type house as a tear down, and then hire subcontractors myself to save money. There are websites and books about this that I plan to look into, but what does the forum here think? Is that a crazy idea? I'm a relatively capable person but I don't have a lot of experience in this area so I would have to read quite a bit and risk some "learn as you go" activities. My biggest concern is that the subcontractors won't prioritize my work since I am a one-off, as opposed to a regular builder that they frequently get work from. Thoughts? Thanks so much in advance!
The issue of "priority" is a almost a non-issue if you've structured your contracts (incl. payout schedule and retainage) correctly. While it's true everyone (in all industries) will favour those from whom they get a stream of work, if they can make a *fair* profit from your project and know you won't be a fickle GC, there will be one (out of 5) that will quote a fair price. Getting your "professional GC" ability across during the initial interview will help you get a fair and reasonable quote.
For most DIY-GCers, finding the balance between "firm but fair" can be the most difficult to accomplish and the one everyone (professionals, too) have a problem with. This is especially true if the homeowner-GC can't compartmentalize their role as the homeowner vs their role as the GC (once the construction drawings have been approved, the "homeowner" role needs to take a backseat to the "GC" role).
FYI: We bought the least improved 1,500 sq.ft. "ranch" on the block and added about 250 sq.ft. to the 1st. fl. and 1,500 sq.ft. to the 2nd.
- Scheduling and staying within budget (within the budget reserve) were the two most difficult aspects.
- I had to fire the 1st and 2nd plumbers (which messed up the schedule) but the 3rd was fantastic!
- The framers became a problem toward the end (when it didn't matter much) and we got through it with some bearable give and take (mostly "give") but I would hire them again (such is the nature of things).
Get: What Your Contractor Can't Tell You: The Essential Guide to Building and Renovating by Amy Johnston. I can tell you, from experience, she writes the way it is/can be.
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