- Elias Zeekeh, MBA, CPA, CMA
To use or not to use a General Contractor - Part 2
In Part 1 of this article we discussed the pros and cons of hiring a general contractor. For those who would rather be their own project manager this article discusses the pros and cons of going that route:
Greater control over the job site and the work that is done. Essentially you are the boss.
You can directly manage the workflow to suit your own needs. You can either accelerate or slow down the process.
Cost savings from not using general contractor. This can range from 15 to 25 percent.
You can be as detailed as you want to be in terms of designs and specifications.
Costs of labour and materials will be transparent as the process is open. General contractors will often not provide insight.
It will require time and energy and this will require you to be on-site each day, and much time will also be spent scheduling, procuring, and planning.
You need a network of contacts in the construction industry. For example, do have a good plumber or electrician?
It requires a high amount of emotional investment and can be frustrating and even depressing on days that things aren’t going well.
Compared to an established contractor you will not have the same level of trade discounts.
It requires a certain degree of technical knowledge so you can make sound decisions, deal with the subcontractor requirements, and schedule the work.
Being your own project manager is for people who have time on their hands or work jobs that allow flexibility. It also requires the ability to handle stress and deal with the unknown. Lastly, an understanding of the building process is also helpful.
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