One way to save on building or renovation costs is to serve as your own general contractor.You can hire your own people to do specific jobs, such as build walls or install plumbing.Subcontracting your own home is a lot of work, and you should think before you do it.
Step 1: You should set your timetable.
It's a good idea to estimate when you want your construction to be finished.You will need to work backwards to come up with a start date.Prepare for a lot of delays.Materials might not arrive on time or the weather may not cooperate.If the weather is too wet, you cannot pour concrete for the foundation.It is possible to get an estimate on how long it will take for a home to be built or renovated.A new home can be built in seven months.The complexity of your home design is one of the factors that will affect the time.
Step 2: You have to draw up your plan.
If you want to build a home from scratch, you should have plans and specifications drawn up.If you want to consult with a designer or an architect, look online.Ask someone who has recently built a home if you want to find an architect.
Step 3: You should identify your financing sources.
It is likely that you will have to borrow money from a bank or credit union.If you act as your own contractor, some lenders might not lend you more than 80% of the cost, so talk to them to find out how much you can borrow.Before they finalize your loan, banks need to see your specifications, bids, and itemized lists of costs.They can prequalify you using estimates.
Step 4: Enough time should be set aside.
You can supervise the construction of your home for several months.You might spend more if the project is larger.Are you able to dedicate enough time to this task?You may be able to split duties with your spouse or a close friend, but you need to have good communication.
Step 5: You need to know who you need.
Subcontractors have a specialty.Identifying what work you need done will help you find the right person.The following are some of the more common types.Blocks are used to build block foundations, retaining walls, walkways, and anything else that involves bricks or blocks.The shell is built using lumber, sheet materials, and trusses.Roofers install roofing material on top of the roof.Plumbing fixture installation and water heating.Electricians install wires hidden from view.It is possible to install siding on the outside of the building.
Step 6: Referred people can get referrals.
Ask someone who has had work done on their home if they would recommend their work.The sub's name and number should be written down.Ask how much the sub cost.If you see a house being built in your neighborhood, talk to the general contractor.Ask for the names of the contractors.You can ask for referrals at the lumberyard.If you need a tiler, you can ask someone who sells them.You need at least three referrals to get bids from many different people.
Step 7: Solicit bids.
The subs should be given a description of the project.They should submit a bid in writing.Subcontractors should give an itemized bid that shows the cost of materials and labor.
Step 8: The experience of each subcontractor should be researched.
You need subs who can do a good job and have experience.When submitting a bid, subs should talk about their experience.You can ask if they don't.Call them up if you want to get three references.You should hire a sub who has handled multiple projects that are the same size and scope as yours.If you are only building an addition, you don't need subs who work on huge projects.They might not take yours seriously.
Step 9: If you want audited financial statements, ask.
A sub that is financially distressed might overcharge you or go out of business.Subcontractors should submit audited financial statements.
Step 10: Do you know the subcontractor's reputation?
You can type the subcontractor's name online.Check to see if there have been any complaints.It is very easy to complain online, so take them with a grain of salt.Look for patterns.There might be a real problem if multiple people complain that the sub doesn't show up.The Better Business Bureau can be used to check the sub's reputation.Check if they have ever been sued.The main place of business for the sub is the county courthouse.Court records are public documents and can be searched for.Pull the case file and read the complaint if the sub has been sued.Find out how the case was resolved.
Step 11: The bids should be analyzed.
The lowest bidder should not be automatically hired.When the money runs out, the sub might abandon the project if the bid is too low.You don't know if a bid is too low.To get a sense of what a reasonable bid is, talk to an experienced contractor.You have to work around people's schedules.A good sub is usually very busy, but you can't hold up an entire project for six months as you wait for them to have an openingMake sure the sub is available for your schedule.
Step 12: Hire people to work for you.
Tell the subcontractor that you want to hire them.The dates of availability should be confirmed.Before you sign a contract, you need to confirm they are licensed and insured.You should get a copy of their license from the sub.Contact your state's licensing agency to confirm it is still valid.Workers compensation and general liability insurance should be on the sub.To confirm that the policies are still valid, ask to see them.You can get a sample agreement from one of the three associations.You can find phone numbers online.
Step 13: Before work starts, buy insurance.
General contractors are responsible for injuries on the job site.You should buy general liability insurance if you act as your own general contractor.Discuss your options with an insurance broker.You may be required to carry builder's risk insurance.It does not cover bodily injury.
Step 14: You have to apply for a loan.
Contact a lender if you need a loan.Before signing a loan, you should review the terms.Pay attention to the interest rate and prepayment penalties.
Step 15: You have to get required permits.
The permitting process can be hard for inexperienced people.You can't expect subs to get the permits for you.Contact your local construction department or town hall for more information.It is your responsibility to make sure you are in compliance with the housing code.You need to understand when these inspections must occur.
Step 16: Track the purchases.
Someone should document delivery slips on the job site.You have to account for returns as well.Losing track of the materials you receive can lead to cost overruns.Delivery slips can be tracked electronically.Scan them to get quick access to delivery slips and inventory.
Step 17: Schedule your workers in a way that works for you.
In a sequence, homes need to be built.If you don't have the foundation poured and the walls built, you cannot have electricity installed.When you hired your subs, you should pay attention to availability.You have to come up with a schedule.When you schedule subs, don't expect them to show up exactly.They are juggling more than one job.It's a good idea to have some time to account for unforeseen delays.You might have to wait weeks for a sub to show.
Step 18: The work should be reviewed.
To learn the building code you need to find it.Make sure the work is built to code when you check it.The quality of the work will probably not be an issue for most subcontractors.Sub work can affect other parts of the house.A plumbing professional might cut a large hole in the wall or floor and then collapse it.
Step 19: Pay quickly.
Subcontractors will show up if you promise to pay promptly when work is done.Protect your reputation.subs will be more anxious to show up at your place of business if you have a good reputation for paying promptly.
Step 20: Send your tax forms to your subcontractors.
The IRS requires you to send a sub a form if you paid them $600 or more during the year.The forms need to be delivered by January 31st.